What's the best kind of economic stimulus?01/29/09 Robert Lorei
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Yesterday, in a 244-to-188 vote, the House approved an $819 billion economic recovery plan written by House Democrats and supported by President Barack Obama.
The entire Republican Caucus, along with 11 Democrats, voted against the plan.
Conservatives have said they are enthusiastic to work with the new President. House Minority Leader John Boehner said "We've made it clear that we will continue to work with the president to develop a plan that will work."
Boehner is a Republican from Ohio, who led his caucus in opposition to Obama's plan. "We just don't think it's going to work." Instead, Boehner and his colleagues pushed for a return to supply side practices. "We have said let's do tax cuts, let's let the American people make the decisions on how they'll spend the money," said
Rep. Spencer Bachus, R-AL, on CNBC earlier this week."That will stimulate the economy more than bringing all that money to Washington and then distributing it out in all sorts of government programs." The alternative proposed by House Republicans yesterday, which was defeated 266-170, was composed almost entirely of tax cuts.
We're joined now by Josh Bivens, an economist at the Economic Policy Institute in Washington D.C. He's studied the merits of tax cuts vs. more direct government spending such as unemployment benefits, food stamps and infrastructure investment.
For more information, visit EPI.org.