Spend or not spend, that is the question. Philosophical, and above all political. On Monday, Barack Obama has chosen the first option, announcing the day of Labor Day (Labor Day), a plan to allocate at least 50 billion dollars in road, air and rail.
The goal is obviously to create jobs while the unemployment rate has stagnated at 9.6%, desperately despite latest figures less bad than expected in private last week, and popular discontent rises. Problem for the President, within two months of the midterm elections, Republicans will do everything to thwart his plans and maximize their chances of winning the House of Representatives on November 2. Worse for Democrats, some pollsters are even considering a takeover of the Senate, one third of the seats are at stake
Republicans against a 2nd stimulus
The plan, spread over six years, includes the construction and renovation of roads (240,000 km) of railways (6,400 km) and 240 km of runways. Given the state of America’s infrastructure, it would not hurt.
Republicans immediately lambasted the plan. With their rise in the polls, they have every incentive to drag things. The Representative Eric Cantor, a rising party, denounced “a stimulus of more” after a first effort of 800 billion dollars in 2009. Repeating the classic conservative mantra, he calls out “immediately reduce spending” and “lower taxes” to “relieve the private sector and creating jobs.” John Boehner, who would become the boss of the House if the Republicans win, had recently called Obama “fired” his entire economic team, Treasury Secretary Tim Geithner at the top.
A Nobel economics calls for spending more
Obama does not allow himself to do. In poorly in the polls, he tried on Monday to refresh the memory of voters. “The Republicans think you are amnesic. They forget that it was they who got us into this situation, “he said in the stricken town of Milwaukee.
Others call finally outright to spend more. In the columns of The New York Times, the Nobel Economics Paul Krugman laments the reluctance of Obama during his first 18 months at the helm. “His recovery program was not ambitious enough and was stopped too early,” said he. And to compare the situation to that of massive spending salutary 1938. The only difference at the time, the 2nd World War had passed the pill.