Rightfully yours

Ed.Note: This is an update to Update on: The Big Stimulus.

The stimulus package is lumbering its way through Congress.  Using the House of Representative’s $820 billion stimulus bill as a model, the Senate came up with its own bill of $900 plus billion, and then carved it down to nearer $800 billion.

After more than five days of Senate conference negotiations, more than $110 billion has been cut from the $937 billion proposal.  The latest figure runs around $780 billion plus another possible $47 billion more in already promised tax incentives to aid auto and home sales broken down to about 40 percent tax cuts and the rest in spending. 

Major spending items cut from the bill were $40 billion in aid to the states, $16 billion for school construction and around $6 billion for public health projects.  Up to $100 billion will be spent to buy and modify some troubled homeowner mortgages.

The 58 Democrats in the majority are enough to pass a vote on the bill if they can get it to that position.  However, at least 60 Senators must vote to proceed to a vote before the vote is actually taken.  Currently, Republicans blocked a vote on Friday saying they have not had time to read the bill.  Debating sessions have been set for Saturday and Monday, with a vote expected midday Tuesday. 

The Republicans complained that the bill that came from the House contained a wish list of everything the Democrats ever wanted, and to some extent, I think some of that may be true.

Republicans Arlen Specter R-PA, Susan Collins and Olympia Snowe, both R-MN have stated that they will vote for the bill in or near its present form.

Senator Arlen Specter is not totally happy with the bill, but said, “I do believe that we have to act and I believe that under all the circumstances this is the best we can do and we ought to do it.”

Senator Susan Collins said, “This project, this bill is not perfect.  It would be difficult to get a bill that everyone agrees on; but it represents an effective, targeted approach to the economic crisis facing our country.”

Once the bill is passed in the Senate, representatives from both chambers will meet and reconcile any differences in the two bills, making it a single bill to be voted on by both houses and signed by the president.  Obama’s signature is what makes it law.

Moving to act quickly, the provisions of the bill target around 80 percent of the total package to be distributed into the economy in the first two years.

In addition, Senators voted Friday to direct the U.S. Treasury to spend at least $50 billion of the $350 billion remaining in the TARP fund on home foreclosure relief efforts. 

Democrats and the few Republicans who consider the welfare of the people they represent are working on a compromise stimulus bill that, although imperfect, can be put into action.  The Do-Nothing Republicans of the male Caucasian cadre who voted against equal pay for women, minorities, disabled and older workers, rail out against any action except their own.

Two of the most notable are John McCain R-AZ, still stinging over his last hurrah at trying to be President, and Michael Steele, the newly elected chairman of the Republican National Party.

Steele advocated in the latest Republican radio address that keeping more money in their pockets would help families the most.  I wonder if Chairman Steele understands economics at all, or is purposely looking to destroy America for his party’s purpose.  People keeping money in their pockets will extend the recession indefinitely and deepen it.  It is the flow of money in consumer spending that will start and drive the economic engine.  But then, they know that.