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November 23, 2009
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Ear to the Ground

Summers to Boehner: Stimulus Is Working

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Posted on Oct 12, 2009
Summers
AP / Lawrence Jackson

National Economic Council Director Lawrence Summers listens to President Barack Obama’s speech on the American economy in Virginia last January.

There is some rumbling among the congressional Republican ranks that Team Obama’s stimulus package has driven the country into ever deeper economic trouble, but one prominent member of said presidential team, economic adviser Lawrence Summers, begs to differ—and he’s written a letter to House GOP honcho John Boehner to tell him why.  —KA

The Wall Street Journal:

“Thanks largely to the Recovery Act, alongside an aggressive financial stabilization plan and a program to keep responsible homeowners in their homes, we have walked a substantial distance back from the economic abyss and are on the path toward economic recovery,” Summers said in a letter to House Republican Leader John Boehner, R-Ohio.

House Republicans wrote President Barack Obama last week asking him to consider a host of tax breaks and other measures aimed at small businesses. The letter, which called the stimulus package “unsuccessful,” detailed GOP proposals to give small businesses a tax deduction equal to 20% of their income, lower individual tax rates, expand health-savings accounts and allow businesses to band together to purchase healthcare.

In a lengthy response, Summers didn’t discuss any of the Republicans’ specific proposals but said he would “continue to review the ideas you have suggested.” He offered a recent history of the U.S. job market and fiscal situation, contrasting the job creation and surpluses of the 1990s to the “anemic” expansion and rising deficits that occurred during the Bush administration.

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By ardee, October 22 at 12:06 am #

George T, October 21 at 11:02 am

I must confess that this lesser of two evils crap makes me rather bilious….Rather than shrug and say how much worse things could be we need a citizenry that is willing to work for a better future.

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By George T, October 21 at 11:02 am #

My friends to the Left of me are going crazy with Obama: he is weak, he is doing nothing, etc.

I believe we are far better off with Obama than with McCain or under Bush.  This is better than the other alternative.

The question now, is what individuals can do to further the work that he at least has begun - the long (many years) road of reconstruction of the economy, reallocating the tax burden, improving health care and cutting back on ridiculous medical malpractice litigation, and a withdrawal of our forces from remote outposts overseas….

Americans can help in that process, somehow, I am convinced.

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By Hulk2008, October 13 at 11:15 am #

P.S.  There STILL have been no reforms set in place by Congress regarding the stock market or real estate or foreclosures or the so-called “too big to fail” financial entities.  Fact is that NObody in Congress, left, right, or center wants reform - they make SO much from misery they just want targeted scapegoats. 

e.g. Senator Bayh’s biggest health care advance ?:  he’s wearing soft running shoes to reduce his plantar faciitis pain.  (He’s one of the Blue Dogs who resists all changes in health insurance.  And his wife sits on the Board at Wellpoint and Anthem and Eli Lilly.)

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By Hulk2008, October 13 at 11:04 am #

Exactly what was it that blocked conservatives and W from “doing the right thing” last autumn in the face of the impending economic debacle ? 
    We started hearing about real estate problems and foreclosures at least 3 years ago.  There were no grand plans or speeches or calls to action by Boehner or W or the Senate 3 years ago or 2 years ago.  And last year all we heard was how horrid Ms. Pelosi and the Dems were in thrashing around about possible TARP funding.  All the conservatives did was clam up and say “NO” (that was about a month or so after they were saying “Drill, baby, drill”. 
  If Boehner and Rush and Hannity and Beck and Fox and Cornyn et al were so darned correct about financial issues, where the heck were they LAST year ?
    Basically, they saw that they had NO solutions and were just waiting to blame the next President - and probably secretly hoping it would be Hillary instead of Obama.  (Conservatives hate the Clintons even more than Obama.)

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By ardee, October 13 at 7:44 am #

Wheat amidst the chaff.

That some of what Sommers relates is indeed true doesnt negate the fact that far too many Americans are unemployed, facing foreclosures and loss of health care.

The economic recovery attempts have been, as they always seem to be, aimed at the top rather than providing cover for the bulk of working Americans. That some have renoegotiated their quasi legal and usurous mortgages is true, that many, many more cannot is also true. The figures note that over one million families are facing foreclosure this year. Obviously neither Sommers or Boehnoer or any in that crowd are included makes their judgement suspect, also as usual.

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