AP News, January 17th, 2008
Some quotes Thursday regarding a possible economic stimulus plan:
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"Our discussion today is about short-term stimulus. ... Just in the terms of the next few months, I think that the evidence suggests that measures that involve putting money in the hands of households and firms that will spend it in the near term will be more effective. ...
"To be useful, a fiscal stimulus package should be implemented quickly and structured so that its effects on aggregate spending are felt as much as possible within the next 12 months or so." — Federal Reserve Chairman Ben Bernanke, testifying before the House Budget Committee.
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"The president does believe that over the short term, that to deal with this softening in the economy, that some boost is necessary." — White House spokesman Tony Fratto.
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"Considering our strategy for crafting an economic growth plan, there are several key principles that we need to keep in mind. First, do no harm. I'm concerned that in our rush to help, we talk ourselves into a quick, feel-good hit today that will leave us with a bigger budgetary hangover tomorrow." — Rep. Paul Ryan, R-Wis.
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"I agree that tax cuts generally do not pay for themselves. But the question — the real question is the balance — the efficiency or growth benefits of lower taxes against the need to cut spending if you have lower taxes. So, it's, again, the law of arithmetic. Low taxes are a good thing, generally, but you have to be willing to make the spending cuts that go along with it." — Bernanke.
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"Fiscal policy that, pursuant to your statement, gets the money into the hands of those who will spend it wisely, consume it wisely, quickly. ... That doesn't mean only a reduction in someone's taxes through a tax rebate, but it could also be something that puts money in your hand to buy food today or to keep your ability to buy your clothes, even if you might be on the verge of losing your unemployment insurance benefits. ... And so that could include food stamps for those who are trying to figure out a way how to buy the next meal for the family or how to make sure that you can buy the clothes your child needs to go back to school" — Rep. Xavier Becerra, D-Calif.
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"While I'm pleased with the appropriate government agencies are focusing on the issues, I do want to issue a word of caution. Whenever the government overly interferes with the marketplace, there is a potential ... of a so-called moral hazard that can affect future economic decisions and transactions. It's very plausible to suggest that if government bails everyone out of this mess that we will continue to bail out bad actors in the future and the market discipline that currently remains will further erode." — Rep. Scott Garrett, R-N.J.
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"I think it's also clear that we need to enact a stimulus package that adds up to more than just helping the rich get richer ... and experts across the political ideological spectrum seems to be coming to a consensus that we need to develop a plan that also helps the most vulnerable people and households and that allows currency to flow." — Rep. Jim McGovern, D-Mass.
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"Relative to this potential fiscal stimulus package, wouldn't some kind of business tax-related stimulus have more of a multiplier effect on the economy? I mean, in the end, if you give someone a few hundred dollars, that helps, but if you give someone more confidence that there's going to be a job or that jobs will increase because there's business activity ... wouldn't that create a greater multiplier effect in providing stimulus over time?" — Rep. John Campbell, R-Calif.
