WASHINGTON – White House economic adviser Christina Romer has declared the president's stimulus plan "absolutely" is working to slow the decline in the economy, though she still held open the possibility of a second stimulus
package a few months down the road.
Her remarks came ahead of a new unemployment report Friday that showed the unemployment rate fell to 9.4 percent from 9.5 percent in June, the first decline in that closely watched reading since April of 2008. Economists had
expected unemployment to rise to 9.6 percent.
Romer, chairwoman of the Council of Economic Advisers, said Thursday that the stimulus package has helped "change the trajectory" in the economy by cushioning what would have been a much steeper fall without drastic government intervention.
"In other words, after we administered the medicine, an economy that was in free fall has stabilized substantially, and now looks as though it could begin to recover in the second half of the year," Romer said during a speech
and question-and-answer session at the Economic Club of Washington.
Amid Republican criticism that the expected unemployment numbers suggest the stimulus has not provided the jolt to the economy the President initially promised, Romer said the program needs more time to work.
But Romer added the possibility of another stimulus package: "That said, if we come to the end of the year, if we're not seeing the kinds of results that we anticipate ... we'd start thinking about other things that need to be done."
Meanwhile, Romer treaded carefully when asked if there is any wiggle room on the president's campaign promise that nobody in the middle class will see any tax increases during his time in office.
"Can I go now?" Romer said to laughter from the crowd.
Mindful that two of her colleagues on the economic team, adviser Larry Summers and Treasury Secretary Tim Geithner, recently kicked up a controversy by leaving the door open on a possible tax hike, Romer finally tried to slam it
shut.
"You know the president has made it has made it very clear through the campaign that middle class families have really gotten a bum deal, not just in this recession but probably for at least the last ten years and that's why he does not want to do anything that burdens middle class families," Romer said. "And obviously no one is talking about raising taxes."
Another one of Romer's colleagues on the White House money team, Jared Bernstein, will be a guest on the "44 with Ed Henry" radio show on CNN Radio and CNN.com/live on Friday at 11 a.m. ET, shortly after the new unemployment numbers are revealed. Call 877-266-4189 between 11 and noon ET to weigh in.
From CNN Politics
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OR... the economy is cyclcical, has always been cyclical, will always be cyclical.... and we just wasted hundreds of billions of dollars.
It's called free market capitalism... it corrects itself through Darwinism. Keep bailing out the weak links and we will go through this again and again and again.
OR… the economy is cyclical, has always been cyclical, will always be cyclical…. and we just wasted hundreds of billions of dollars.
It's called free market capitalism… it corrects itself through Darwinism. Keep bailing out the weak links and we will go through this again and again and again.
I am against raising taxes. We should just get rid of all the tax cuts Bush put in including allowing Billions to rollover in inheritance.
Wow what a Great Idea! Spend more money our country does not have and run up more of a deficient.
They can spin this any way they like but that stimulus money has done nothing for the economy!
If it had, then the Obama team would not be still out here blaming Bush for this and speaking about pumping more made of thin air money into our economy!
Obama is over his head and people in his administration are as dumb as bricks!
Now we have to get though this pain for three and a half more years before you liberal Democrats can admit your mistake and get this fool out of office!
Uh, cool your jets, Christie, this one needs more time and while I agree with everything that President Obama has done to date. I would not agree with this unless it was only going to extend the safety net to those unemployed, i.e. food stamps, unemployment benefit extensions, etc.
No money for infrastructure at this time.
You will never catch the rich to make them pay tax. Their money is hidden in offshore accounts and who knows where. Just tax them on what they spend.
yay more spending.
keep going out on that limb Mr President.
let's get another stimulus instead of creating REAL jobs.
my grandchildren that haven't been born yet are still hurting from your future tax burden you're giving them and now their kids are hurting too.
how many generations do you need to destroy with your social programs.
My new Chinese name:
Chiang Ling Shek.
I suggest you all go out and get your own chinese name because we'll be owned by them soon.
thank you Bush/Cheney
Bush / Cheney are the worst ever
Mr. Obama, you are doing good work, things will and are starting to improve, it will take along time to recover from 8 years of bad judgement
It took years for George W, Bush and the GOP-controlled Congress to screw things up. And it's gonna take some time for Barack Obama and the Democrats to fix the damage they inherited from the incompetant Republicans.
How about passing out the money from the first stimulus before you hint at a second one.
Stop discriminating and let some of us blacks who are applying for stimulus money to be able get going with our plans. I am not talking about the blacks that are in bed with you racist people but the real blacks that are in the trenches with the community we wish to serve. This seems like the republican party is controlling the money the way you guys are avoiding helping the bottom rung of society.
The president never had a first stimulus. He dodged his first test of leadership a had Pelosi come up with an expansion of a social agenda called a stimulus.
I watched this interview and she is scary as is the whole aministration but she did not say that they were thinking about another stimulus. BUT because she would not NOT say that, that is what the headline reads.
I can't even explain it myself.
Ridiculous journalism!!!
How can she possibly say Obama's stimulus worked, Its 6 months later and we are still losing jobs? Not to mention the fact that he has tripled our national debt during this time. Is it too late to change my vote to McCain?
I got an Idea just give everybody $10.000 and let them spend it on what ever they want (except kids under 18 )
bet this doesn't go over too well...
Excuse me....could you please tell me where this money is coming from and how it will be paid back? I guess Obama never had to take an economics class while at Harvard.....and he tells us to practice responsible spending. What a joke this administration is! OOps, I forgot, he had his Harvard education paid for by and he didn't buy his house
OK CNN, let's sere if you post this since you generally only let Obama supporters post whose knowledge comes from the media!
She's not talking out of both sides of her mouth – she has more sides than that and talking out of all of them.
The stimulus absolutely is working
The program needs more time to work
If it doesn't work as expected, we start thinking about other things to be done
No one is talking about raising taxes (but are they privately considering it – she certainly didn't say we absolutely will not raise taxes)
Wow! More possibilities than a weather forecast.
It amazes me how people are so quick to judge President Obama after just 200 days in office.
What took years to destroy is not going to be fixed in 200 days.
Fortunately the efforts of this administration are starting to show substantial results.
The economy will recover and this nation will get back on track and the republicans with their Uneducated, morons, bigots right wing nuts will find another talking point to criticize the president on with the usual Lies.
I can see anybody that really love this country and want america to compete in the future vote for a Repuclican. Democrats are not perfect because tend to go on spending spree, and promote laziness with more more government programs if not controlled but given the choice on the two parties I will rather have democrats for unity and prosperity and progress than have a republican with hypocrisy, hate and self interest centered ego.
Again? For who?For JPMorgan, for Bank of America etc, etc.You guys forgot about our people who are loosing theirs houses, we are not able to put food on the table and you give money to the same, same crooks.Just ask JP Morgan how they helped homeowner so far?Mister Obama we love you but just for you and your administration try to ask about help at JP Morgan and you will see what Im talking about.You will talk with people from Filipine who doenst know about our problems here.What about Filippine or India to bailout these people not us.Thank you
Does anyone have a figure of how much of the original stimulus money has actually been spent? I recall a fibure a couple of months ago that stated 70% of the original $700+ Billion was still in the coffers, unused. This is insanity.
I wish I knew why we let a group of politicians control our entire well being...
With the Bush's stimulus we all got a handsome check of $1200 or so, who got what for Obama's stimulus.
How wise is to borrow money from China and funnel $800,000 to a rarely used Murtha's Earmarks Airport in PA, and $15M airport in Alaska with 150 population? All in the name of job creation; No jobs were created in these cases though.
My alcoholic talking dog says if we don't spend a bunch of money we'll all go broke.
Also, Treasury Secretary, Timothy F. Geithner, says it's not a matter of "if," just a matter of "when," your taxes are going to go up.
Shhhhh...... don't tell anybody.
Whoever thought that the economy was going to recover six months after the president came in office need to be quiet, especially the House Republican leaders who said the stimulus failed when in fact the president said that it was designed to be a two-year plan, not a six-month solution. The Vice President himself said on this station back in April that there will continue to be more job losses for a few more months, and eventually we could see some improvement.