ADN

Option being considered would rival efforts to fight the Great Depression

WASHINGTON (AP) - Eager to jolt a worsening economy back to life, President-elect Barack Obama's aides are assembling a two-year stimulus package that could cost $850 billion, dwarfing last spring's tax rebates and rivaling drastic government actions to fight the Great Depression in the 1930s.

Obama is promoting a recovery plan that would feature spending on roads and other infrastructure projects, energy-efficient government buildings, new and renovated schools and environmentally friendly technologies.

There would also be some form of tax relief, according to the Obama team, which is well aware of the political difficulty of pushing such a large package through Congress, even in a time of recession. Any tax cuts would be aimed at middle- and lower-income taxpayers, and aides have said there would be no tax increases for wealthy Americans.

While some economists consulted by Obama's team recommended spending of up to $1 trillion over two years, a more likely figure seems to be $850 billion. There is concern that a package that looks too large could worry financial markets, and the incoming economic team also wants to signal fiscal restraint.

In addition to spending on roads, bridges and similar construction projects, Obama is expected to seek additional funds for numerous programs that experience increased demand when joblessness rises, one Democratic official said.

More/Source: http://snipurl.com/8r0ke [www_msnbc_msn_com]

I saw this "economic stimulus" package - most of it is city jobs.

The thing is unfortunately, it won't work as drafted. It is mostly paying two people to dig a hole and three people to fill it up, and cutting the checks from their new job taxes. Spend taxes to create jobs to

Some of it is REALLY bad, like Jackson, SC where they are proposing a "green light" initiative to replace all the lightbulbs with better ones. It only employs 18 people, and from the supplies and wages incurred - the saving from these new lightbulbs by their own financial projection will pay for for itself over 86 years.

Some of it, like hiring 2 people to clean up a park is ok. Saying that you need to create 40 parttime full benefit jobs and the project will cost 12 million is absurd.

But again, this was a proposal by the US mayor's association. It needs to be redlined before it can pass, and the excess is not because of the President Elect's inclusions of any projects. This was a project by the mayors, and a piss-poor one in total.

Is all this money top down spending without really consulting local government on its specific needs?, I mean surely states and cities have an I dea of what would benefit them most?....it all just seems like trying to get back to where we/they were before things went to shit, instead of actual real change?

um, no.

Most local people have no clue what to do with money. They have valuable data to add to considerations - but most states and local govt grossly overestimate their needs.

Like the lightbulb replacement program in the proposal for Jackson SC... it pays for itself in 86 years. most state jobs run like this:

2 people paid to dig hole.
1 person paid to make sure they have shovels
1 person to make sure the shovels are up to code and affordable.
1 person to make sure the people asked to dig are not filling.
1 person to make sure the hole will not adversely affect the community.
1 person to measure the impact of the hole on the environment.
2 people to design flyers to let people know the hole is going to be there.
1-3 smiling white models to show the hole is a good thing
1-3 smiling minority models to show they should not be afraid of holes
2 accountants to figure out how much overbudget the project is
1 event coordinator to celebrate the hole opening
1 analyst to see why people are not using the hole
2 people to fill the hole up
and so on...

(disclaimer, this would be in reality a 50 person job, including HR, IT, and so on.)

...but most states and local govt grossly overestimate their needs.

I definitely agree with this. It's looking more and more like consulting local government is resulting in these dead-end projects. I don't think local govts. have learned their lesson yet. It doesn't seem that many actually have, really.
In desperation, local govts are acting like developing neighborhood non-profits. They are asking for bigger shares because no real "bootstrap" plan is in place.

Shit. Just give me the $4 or $5 that's my share of the $850B... I'll buy myself lunch thereby keeping the economy (McDonalds) chugging along.