Stimulus

January 5 - In today's Washington Post, Senate Budget Committee Chairman Kent Conrad and Ranking Member Judd Gregg called on Congress to combine the passage of expected stimulus legislation with a "bipartisan commitment to begin addressing the long-term budget challenges confronting our nation." 

Noting that stimulus paid for through deficit spending is both necessary and appropriate at the present time, Conrad and Gregg said that to avoid the next economic crisis, the Congress must address long-term fiscal imbalances sooner rather than later.

"By acting now, we can make difficult but gradual changes to bend the cost curves of entitlement programs that will otherwise overwhelm our budget, as well as make needed reforms to our out-of-date and inefficient tax code. The longer we put off these reforms, the more draconian our choices will become and the more likely they are to be forced upon us."

December 24 - As the start date for the 111^th Congress and the Obama Administration approaches, interest groups and policymakers are beginning to negotiate what policies would constitute stimulus and how to package any stimulus proposal that would come before Congress.  The Washington Post reports that "smart growth" proponents and environmental groups are expressing concern that current stimulus proposals focus too strongly on traditional highway construction.  Observers have questioned whether "green collar" projects could begin sufficiently soon to count as short term stimulus, and President-elect Obama has said that stimulus projects must be "shovel-ready-projects" (which for the most part are highway construction).

Vice President-elect Joe Biden said on Tuesday that the stimulus would focus on creating 3 million jobs, 85% of which would be in the private sector.  Addressing the worry that some budget analysts have expressed regarding earmarked pet projects from lawmakers weighing down the stimulus, Biden said:

 "There will be no earmarks in this economic recovery plan.  I know it's the Christmas season, but President-elect Obama and I are absolutely determined that this economic recovery package will not become a Christmas tree."