Thursday, June 23, 2011

In Desperation, Democrats Want Another Stimulus Bill

Democrats are known to be frugal with their money, but it is "skies the limit" when Democrats spend other people money. In a past blog "2 Million Less Jobs Today Than When Obama Sign Stimulus", the $800 billion stimulus bill created a loss of 2 million jobs. In desperation to improve the economy before the 2012 election, Democrats wants another stimulus bill. It seems they will never understand.

(Reuters) WASHINGTON, June 22- Democratic leaders called on Wednesday for new spending and tax cuts to boost the sluggish U.S. economy, setting up a fresh hurdle for bipartisan efforts to head off a government debt default this summer.

At the same time, a new report warned that the country could face a European-style debt crisis unless Washington cuts spending or raises taxes.

The report by the nonpartisan Congressional Budget Office adds urgency to the work of negotiators, led by Vice President Joe Biden, who are trying to find trillions of dollars in savings as part of a deal that would allow Congress to sign off on new government borrowing before the U.S. runs out of money to pay its bills.

As the group faces competing demands for stimulus and austerity, some have suggested that it may not be able to get a deal done in time to head off a debt default in early August.

Senate Democrats want the deal to include a payroll tax cut, more money for highway construction and clean-energy subsidies to bring down the 9.1 percent unemployment rate.