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Does US Need a Second Stimulus Plan?

09 July 2009

This is the VOA Special English Economics Report.

Last month more Americans than expected lost their jobs. Job losses had fallen every month since January. The news raised questions about the strength of progress toward economic recovery. Unemployment is at twenty-six year highs. The jobless rate in June was nine and a half percent.

That is already a lot higher than President Obama's advisers had predicted for later this year, even if Congress passed a stimulus bill. Congress did that in February with the American Recovery and Reinvestment Act. It contained seven hundred eighty-seven billion dollars in spending increases and tax cuts to strengthen the economy.

Rob Nabors speaking to lawmakers in Washington on Wednesday
Rob Nabors speaking to lawmakers on Wednesday
That bill was a compromise between calls for more spending and concerns about the rising national debt. Most of the money has yet to be spent. But already some lawmakers and others are saying the economy might need more.

"No one in the administration is talking about a second stimulus at this point." Those were the words of Rob Nabors, deputy director of the White House's Office of Management and Budget. He told a hearing in Congress on Wednesday that the administration is mainly concerned with the current recovery plan.

Still, even President Obama left open the possibility when he signed the recovery act into law in February.

BARACK OBAMA: "Now I don't want to pretend that today marks the end of our economic problems. Nor does it constitute all of what we're going to have to do to turn our economy around."

One concern is the possible effect of additional spending on the budget deficit. This year's federal deficit is already predicted to be the highest in relation to the economy since World War Two.

Laura D'Andrea Tyson is on the president's Economic Recovery Advisory Board. On Tuesday she suggested that the administration should plan for the possibility of additional aid. Rob Nabors told the congressional hearing that she did not represent the administration.

The Government Accountability Office reports that state and local governments have received twenty-nine billion dollars so far. It arrived quickly. But ninety percent has gone to health care for the elderly and education programs. Only a small part has gone to bridges, roads and other infrastructure -- projects that can put people to work more quickly.

The report led Republicans to say the recovery plan passed by Democrats is failing. But members of both parties have suggested they might support new stimulus measures to end the recession.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.



Comments:

1. Economics

The United States still continue with unemployment problems. The effort of the government's plan was targeted to generating more job opportunities, but the results of the economy suggest that the objective will have to keep on waiting. The Obama administration and advisors are now held accountable for the assessment of new ways of aiding Americans to get more jobs.
Submitted by: Felipe Mancini (Chile)
08-14-2009 - 12:02:29

2. Cooperating with other countries

I think America should not only stimulus domestic market but also cooperate with other countries. For domestic market increasing infrastructural investment, also exporting more products and attracting more investment.
Submitted by: Wesley (China)
08-06-2009 - 10:58:50

3. Time for change!

Millions of people in the United States loss their jobs. They now have struggled living without a job. Unemployment rate among men is much higher than that of women. It is quite funny to know the fact that men now are those who spend their time taking of their kids and doing housework while women spending time working outside. Unfortunately, unemployed people now have really hard time finding new jobs. Therefore, they need a support from the congress immediately. And the best solution is to give away the second stimulus package. Thanks for this news.
Submitted by: Truong Phan (The United States)
07-19-2009 - 03:57:06

4. thanks so much

I learnt lots of your report
Submitted by: fariba (canada)
07-15-2009 - 07:27:17

5. All of economies over the world are looking toward The United States

Unemployment rate of The United states is now so important for strengthen of economies. reducing or increasing in jobless rate will effect to another countries and investors over the world. It also effect strongly to stock markets. So The US should concern more solutions or stimulus plans to reduce the jobless rate. I believe that the US can do, we can do and yes we can.
Submitted by: sieng (VietNam)
07-12-2009 - 12:54:42

6. Does US Need a Second Stimulus Plan?

I think do more to help economics recovery is positive.........and anyone would like to see that.
Submitted by: Tony Hui (Hong Kong, China)
07-11-2009 - 15:59:06

7. A Balance is Needed

From your article I learned that ninety percent of the financial resources for stimulating the economy had gone to health care for the elderly and education programs and only a very small portion to those quick-job-creating sectors. On the one hand, I respect and admire this arrangement: people is everything! On the other, however, I should think that a balance be found between the two. Fighting and reversing the recession is an imminent job for all the countries world over to do. In other words, a quick fix is badly needed. So diverting some more financial resources to those sectors which can produce immediate economic results might be advisable. It is the people who will be benefited ultimately anyway.
Submitted by: TANG Qixiong (the People's Republic of China)
07-11-2009 - 09:33:18

8. Great America

It's a great country that could help their citizen in the time of difficulties, I love America, I hope I can live there someday. But it is sad to me that I have not been selected in this year diversity visa lottery, will try again for next year, and wish me luck.
Submitted by: Susilo Bambang (Indonesia)
07-11-2009 - 02:31:51

9.

great news!
Submitted by: David Nguyen (Vietnam)
07-11-2009 - 01:57:42

10. REVOTE INPEACH OBOMA

NO Stimulus THE TAX PAERS DONT NEED TO PAY THE SAME TAXS TWICE IN A ROW ME YOU CAN LOWER THE COAST OF LIVEING DAM I CAN DO THE BOOK BETTER THEN ANY DEMO CAN
Submitted by: ANTHONY BEERY (UNITED STATES)
07-10-2009 - 04:52:13

11.

The US absolutely needs another stimulus plan because the unemployment is more serious than Obama expected earlier. But he has delimma about the deficit problem. So I think if the stock market can't maintain its level, he will do the second stimulus plan soon.
Submitted by: George Pu (Taiwan)
07-10-2009 - 03:37:07

12. Thanks

I learn a lot from VOA. Thank you very much. I love America.
Submitted by: Tuấn (Vietnam)
07-10-2009 - 03:06:18

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