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
"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.
Try a second stimulus and see what happens in 2010 and 2012.
No more stimulus.... PERIOD!!!!
Second stimulus .....you got to be kidding....they have only spent 10% of the first time and didn't bother to read the bill....and they want more....are they insane....are they not reading the polls.....didn't look at grades that CNN put out last night. He got D's and F's all over the place....the way CNN graded it was a C-.....but the D's and F's percentage wise far out weighed the A, B and C's.
Christina Romer and Jared Berstein need to send the White House the following message..... lay off our health care and quit spending our money.....no 8 personal jets for the Congress except for the 1 the military wanted for the Congress originally....
Things get worse..."Obama is a failure...where's your messiah now?"
Things get a little better/start improving..."The economy is magic and fixes itself, so this has nothing to do with the Stimulus!!!"
If only we could get cash for trading in the clunkers known as the GOP....they might not guzzle gas and pollute the atmosphere, but they're the epitome of inefficiency and pollute the public discourse with lies.
Seems the only thing being stimulated by Obama's stimulas money is ACORN and the UAW.
The only stimulus we need is Obama removed from the white house.
It seems the stimulus plan is working as President Obama stated 6 months ago. This was to be a 2 year process to correct 8 years of wasteful spending, greed and neglect imposed on Americans by the Bush Administration.
The GOP needs to check out the children's book 'Henny Penny' from the Bush Library. The sky has been falling since 9/11/2001 . They have now become background noise, offering no 'viable' solutions for anything and are unable to collaborate with anyone...even themselves.
The Republicans want and need the President and America to fail or they won't be able to use their "fear and hate" programs to push their radical mob of a base into action for the up coming elections. Remember – 98% of Repubs voted against the stimulis package, and that same group has no interest in health care reform. They prefer everything to be as it is.
They will continue to obstruct all actions to promote the economic recovery and push forward all possible agenda that benefits only the small minoirty of the wealthist few in the US. – which includes every Repub politician.
They are the party of "no" patriots, whose actions say "yes" to fascism.
On a related note, the coward in chief, errr, commander in chief denied he is thinking of a second stimulus and that she "used a poor choice of words".
Just like this gutless fraud isn's for a single payer insurance plan EVEN THOUGH IT IS ON TAPE with him saying EXACTLY THAT.
Not snippets put together like they are saying, a whole speech VERBATIM (exact words for you stupid Obama voters).
CNN, please send this to Barry for his "fishy review" at flag.white house.gov.
"other things that could be done" could mean anything. She did not say that there would be a second stimulus. ...C'mon CNN. Stop reaching.
"Amid Republican criticism that the expected unemployment numbers..."
Republicans: Wrong again on the economy.
And if you don't believe Romer, White House aid Jim Messina will come to your house and punch you.
Another stimulus? Where is all the money going to come from? The huge debt will take 20 years to pay off, and that is if we can get people back to work and paying taxes. It's a risky proposition, but I guess it's better than waiting for the economy to fix itself. I hope my children and grandchildren can afford it.
The administration has crossed the Rubicon. From now on, this is Obama's economy. Can't blame it on Bush anymore, not when you have taken ownership. Also read that Chairman O says things are improving, so he soon gets to do what so many have done before him and take credit for the business cycle.
And in other news, the sun rose this morning . . .
Anything more stimulus funds do will be short lived, just delaying the pain.
Please no more spending! This stimulus that is supposed to "help" us just means we'll pay higher taxes later!
If either Christina Romer or obama had a brain they would both be more dangerous than they already are. And now we are blessed with something called a Sotomayor.
that's funny. my county exec has started talking about how bad things are going to be for the next fiscal year. he is talking about county employee furloughs to balance the budget
and the economy is getting better? for who?
Things Are Looking Up- Even with the NO PARTY trying every dirty trick they can think of to make Obama and party look bad. When the new health care plan is passed we will see that more than half of what the GOP has spouted were at best half truths. I woould advise those that think the stimulus money was a bad idea to send the next one back.
The process of supply and demand will seek an economic balance if left alone and not manipulated.
Economics 101 – If there's a demand people will buy and if people will buy, somebody will make it. If there's no demand or the price is too high, nobody will buy it and either the price will come down or nobody will make it. We need to stop playing games with the Nation's resources and let supply and demand correct the big mess we've created.
I would hope the Admin. would not go down that road again!!
If a 'second' stimulus is needed that would tell me that the corporations have pulled the blinders over the public...and greed is abounding. Shame Shame....God has warned you time and again about this greed....how long will you ignore him?
NO MORE STIMULUS!!
The government is trying to manipulate the market with the stimulus package and other initiatives to protect special interests. If supply and demand is allowed to direct our economy, the the markets will determine who gets hurt and who succeeds.
They used the first package to pay off unions and the rest of the partisan groups and now they want more. Obama said unemployment would not go above 8% and it hit 9.4%. We lost 2.5Million jobs since then. You can't trust them to do what is right.
Obama is the best PResident this nation has ever had!