February 8th, 2009
04:45 PM ET
5 years ago

Stimulus will lead to 'disaster,' Republican warns

WASHINGTON (CNN) - Leading Republicans warned Sunday that the Obama administration's $800 billion-plus economic stimulus effort will lead to what one called a "financial disaster."

"Everybody on the street in America understands that," said Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee. "This is not the right road to go. We'll pay dearly."

Shelby, of Alabama, told CNN's "State of the Union" that the package and efforts to shore up the struggling banking system will put the United States on "a road to financial disaster."

But Lawrence Summers, the head of the administration's National Economic Council, said Republicans have lost their credibility on the issue.

"Those who presided over the last eight years - the eight years that brought us to the point where we inherit trillions of dollars of deficit, an economy that's collapsing more rapidly than at any time in the last 50 years - don't seem to me in a strong position to lecture about the lessons of history," Summers told ABC's "This Week."

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soundoff (400 Responses)
  1. Jeff Spangler, Arlington, VA

    Dr. Summers is not a very good mouthpiece for The Presidential One, who will need a more convincing huckster to sell The People on this plan, based on an economically disputed 1920s Keynesian theory which may or may nor be effective today. VP Biden admits that even if we do everything right, there's a 30% chance it won't work. Betting over a trillion on these odds on such short notice is highly irresponsible.

    February 8, 2009 05:40 pm at 5:40 pm |
  2. Charles from Atlanta

    We're already in disaster. Everyone looks you 401K, your saving, your house value, your job, your comminity, our foreign relationship, our education, then ask yourself, are we in right direction? GOP congressmem need to vote them out. Period. After 8 years disastrous administration, our national debt has doubled to over 10 trillions. What else these Republican want to say?

    February 8, 2009 05:40 pm at 5:40 pm |
  3. independent

    Please, make a list of all these GOP do-nothings and nay-sayers. When the economy turns around, kick all these guys out.

    In addition, if the plan doesn't' work, two things are clear: 1) only one party wanted to try to fix the mess the GOP made, and 2) the GOP foot-dragging and plan cutting might be the reason.

    February 8, 2009 05:41 pm at 5:41 pm |
  4. maf

    What a naysayer. What are the Republican options? Nothing of substance. The world is watching the Republican opposition. . .waiting for a vote that will spur some kind of global recovery. This is not just about the US, this affects Canadians closely and world markets in general. The economy needs action, not politics as usual from a party who's policy has lead to this enormous debt.
    Get over yourselves and give the US President some room to move!

    February 8, 2009 05:41 pm at 5:41 pm |
  5. Anonymous

    GOP = Grandpa's Old Politicians

    February 8, 2009 05:43 pm at 5:43 pm |
  6. Dylan from MN

    Republican ideology has led us to disaster. Your words have become meaningless and empty

    February 8, 2009 05:43 pm at 5:43 pm |
  7. Cindy

    This is what I cannot understand. the republicans has been in charge for 8 long years, so we have been in this mess on their watch. Since they don't like or want President Obama's plan why didn't they solve the problem when they were in office?! They still belive that they are the only ones to come up with a plan...look back at the last 8 year.

    February 8, 2009 05:44 pm at 5:44 pm |
  8. Louie

    The $700 billion TARP was the brain child of a Democrat and executed by the Democrat Congress. So Summers is lieing. But so what, he is an Obamist.

    February 8, 2009 05:44 pm at 5:44 pm |
  9. Mike

    Dont the republicans understand that when it comes to fiscal responsibility they have no credibility.We already the results of their policys.Its the democrats turn.Like it or lump it.

    February 8, 2009 05:44 pm at 5:44 pm |
  10. G from RTP

    I say give them what they want . Stimulus and jobs to states that voted for Obama, and Tax cuts to the ones that voted for Mccain

    February 8, 2009 05:45 pm at 5:45 pm |
  11. peggy drees

    ACCOUNTABILITY...ACCOUNTABILITY...ACCOUNTABILITY...ACCOUNTABILITY...ACCOUNTABILITY.......ACCOUNTABILITY...ACCOUNTABILIT...YOU GET THE IDEA

    February 8, 2009 05:46 pm at 5:46 pm |
  12. Louie

    ALWAYS when a pro-Obamist uses a dirty word it is likely to get posted. An anti-Obamist doesn't get posted for using a dirty word.

    February 8, 2009 05:46 pm at 5:46 pm |
  13. Mr. T

    Well said Mr Summer...How in the hell can they talk about destorying the EC when they sit there and did nothing to stop GW. Now to say we was wrong and the America people will reject this kind of spending. We did on Nov 4 last year. Never thought we would elect Mr. Obama didn't you, never thought that we'd show up in sub-0 weather but we did. You Rep have been wrong for the last 8 years and still trying those old games..

    February 8, 2009 05:47 pm at 5:47 pm |
  14. Unshrub

    How come all of a sudden the republicans think they know how to fix the economy? If they had a plan why didn't they say something before? Or better yet, why did they get us into this situation. They are good at waiting until the Democrats come up with a plan and then cry about it. They have only one plan for us, and that is to hope the Democrats fail so they can get back into power. They have no other solution.

    February 8, 2009 05:48 pm at 5:48 pm |
  15. Ed

    Be afraid, be very afraid...get real republicans, the politics of fear are dead. Time to move forward with Obama.

    February 8, 2009 05:48 pm at 5:48 pm |
  16. Hansel Larsen

    Are the Republicans joking ... do they not understand what is going on. I mean i understand being conservative means by definition being reluctant for change, but this is mind boggling. We are not on the road to financial disaster we are already there! Wake up or in two years your party is going to be in finished.

    February 8, 2009 05:48 pm at 5:48 pm |
  17. Independant Thinker

    Thanks to Obama Socialism / Communism here we come.

    February 8, 2009 05:49 pm at 5:49 pm |
  18. Mike

    After what the republicans lock-step policys have done to this country Im not surprised they want to keep the status quo.

    February 8, 2009 05:49 pm at 5:49 pm |
  19. Santa Cruz Horn

    "Lead us to financial disaster?" Open your eyes we are already there courtesy of the GW and the Grand Oil Party.

    February 8, 2009 05:49 pm at 5:49 pm |
  20. arkebo

    I wonder where he has been for the last 8 years.

    February 8, 2009 05:50 pm at 5:50 pm |
  21. john

    Yeah. Lets keep the same policy that brought us to where we are today.

    February 8, 2009 05:50 pm at 5:50 pm |
  22. beep beep

    GOP=
    Grim Outlook Preferred
    Government Over People
    Grumpy Old Protestants
    Grabbing Our Pensions
    Giving Osama Protection
    God's Only Party
    Getting Our Percentage
    Gladly Outsourcing Prettymucheverything
    Gratuitious Overstepping Power
    Gutting Our Protections
    Greed Over Principle
    Gasbags On Parade

    Anyone have any others to add to the list?

    February 8, 2009 05:50 pm at 5:50 pm |
  23. Peter

    Ok so let me see if I understand....YOU will pay for a 700 billion dollar bailout to BAIL BANKS FOR BUSH, and yet then when the DEMOCRAT wants to help the AMERICAN FAMILY you all of a sudden predict doom. I hope you resign from the Senate because you're the dumbest man in government.

    February 8, 2009 05:52 pm at 5:52 pm |
  24. dk

    When will US politicians finally put the interest of the country ahead of their political parties? Party platforms have become so broad, extreme, and rigid that they do not support the common interests of the country or its general population. Fears of angering the extremists in their parties have rendered a large portion of our politicians compromisingly impotent.

    February 8, 2009 05:52 pm at 5:52 pm |
  25. sky

    Unless Richard is about to lose his home....or his job.....unless he is buying store brand items.....counting every penny, walking to work......then he has absolutely nothing to say. Nothing of interest. unless these Republicans quit thinking only about themselves...and start thinking about this country then nothing they say holds value to me. I thought I disliked them before the election.....but I was willing to let that go....give them a chance, because working together is far better than working a part....united we stand and divded we fall...and all of that....but you people are selfish and power hungry. your fruit salad is made up of nothing but sour grapes. When you guys start paying attention to the country and world instead of your own pride and your own wallet....then I will listen to you again.

    February 8, 2009 05:54 pm at 5:54 pm |
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