The Need For A Second Stimulus Exists As Dow Dips Below 10,000

 If you do some digging on the net, the need for a second stimulus is documented even as early as last year in 2009.  We are only recently hearing more calls for a second stimulus; but the case for a second stimulus is mounting; especially when one considers that the last stimulus did not take into account any fiscal problems for state and local governments.  In addition to Paul Krugman's recent assertion, many have long argued the need for a second stimulus.  Most in fact the very day that the first stimulus was passed.  It was recognized that the first stimulus would not do enough to create private sector jobs. In January of this year, it was recognized by The Christian Science Monitor that the need for a second stimulus exists. 

The last stimulus package didn’t take into account the fiscal problems the recession would create for state and local governments.         -The Christian Science Monitor

On January 22, 2010, The Christian Science Monitor reported at this link:  http://www.csmonitor.com/Commentary/Global-Viewpoint/2010/0122/US-economy-needs-a-second-stimulus that the U.S. economy needs a second stimulus.  The article references Keynesian economics which is the key that China is using to get out of their recession citing the construction of high speed rail in China.  Something that this government is not truly doing.  Not in the way that the Republicans are saying that we are not doing .  The Republican model for economic policy is an all out spending freeze. 

The United States mastered macroeconomic management, wrote the textbooks, and the Chinese are currently using our own playbook to have a faster recovery in this Great Recession with an economics model created by the United States.  The article referenced by the Christian Science Monitor was written from the assertions of Joseph Stiglitz, who was awarded the Nobel prize for economics in 2001 and has published the book, Freefall: America, Free Markets and the Sinking of the World Economy the link to this book is posted below for anyone interested in the assertions made by Mr. Stiglitz, an economist who the federal government needs to be listening to and passing a second stimulus. 



Below is an excerpt from that article in the Christian Science Monitor: 

The US stimulus has made a difference. If we hadn’t had the stimulus, unemployment would be 11 or 12 percent. Yet, it was not big enough or well enough designed to bring employment back to normal levels.                     

This is a tool for the unemployed.  This is a talking point and this is a reason to petition again to Congress, this is another reason to continue advocacy.  Perhaps Congress does not have the political will for a "Tier 5" because of the name.  Let's just call it EB2 then.  Call it the "Funding States That Are Broke Act of 2010".  Call it whatever you want to call it.  Write the legislation and pass it NOW!

Readers, we need input! 

It is obvious persons are exhausted over everything.  Frustrated.  At the tipping point, if you will...   Scared.

Would it be worthwhile to start a campaign for a second stimulus or is everyone too burned out at this point?

You wouldn't be calling Congress for a Tier 5, you would be calling for a second stimulus to prevent the double dip recession which is inevitable without it.  Investors are not going to invest unless they are certain the economy is going to create jobs and increase consumer spending.  Naturally, cutting the safety net from 10% or more of the United States population is not a very smart way to increase consumer spending.  Doing nothing is not a solution.   Waiting until November to take action is not a solution.  Ideas anyone?

The unemployed might win their argument for a Tier 5 by making this a case about the economy rather than just unemployment insurance extensions.

Senator Richard Burr Uses BP Oil Leak As Smoke-Screen To Shut Out A Tier 5 Or A Second Stimulus

According to DailyAdvance.com, Senator Richard Burr (R-NC) says that the focus right now should be on stopping the BP oil leak.  Burr has a record voting against unemployment insurance and when asked about a second stimulus for help to the struggling states and the unemployed, Burr stated:

“We’re just not in a position as a federal government to create a second stimulus package,” Burr said. “I don’t think it’s the role of the federal government to come to the aid of states and bail them out.”

Burr expressed support for the various probes that are looking into what caused the disaster and whether it could have been prevented.  Burr stated also that: 

“It’s absolutely essential for us to understand what went wrong,” Burr said. “I can’t tell you today whether a federal regulator turned their back or a company cut some corners they shouldn’t have.”

According to the Associated Press, government officials estimate that the leak, which started six weeks ago, has now dumped anywhere from 21 million to 45 million gallons of oil into the Gulf of Mexico. BP’s latest efforts to plug the leak ran into a problems and an oil slick from the disaster began approaching the Florida panhandle.

This statement comes from Burr’s trip to Edenton on Wednesday for tours of the newly renovated Cupola House and to visit local employers. He also participated in a radio interview conducted by 103.7 WTIB-FM talk show host and Chowan County native Henry Hinton.

If you are a 99er and/or have exhausted all benefits of unemployment assistance, continue to expect a “No” vote from the senior Senator Richard Burr.  According to the United States Department of Labor, Bureau of Labor Statistics, Burr’s state of North Carolina is experiencing an unprecedented 10.9% (nearly 11%) unemployment rate and the state’s unemployment fund is broke just as many others across the nation. 

http://www.examiner.com/examiner/x-51044-Nashville-DNC-Examiner~y2010m6d5-Senator-Richard-Burr-RNC-uses-BP-oil-spill-as-smokescreen-for-no-support-for-second-stimulus#

FOX Nation Picks Up On Second Stimulus Story A Full Week Later - The Comments, Of Course, Infested With Neocons... #TIER5

Newsworthy only in the fact that Fox is a major network, the story of Lawrence Summers making the case for a second stimulus has trickled its way up to a posting by Fox Nation.  Their short and sweet story on the subject is posted here:  http://www.thefoxnation.com/larry-summers/2010/06/01/obama-adviser-calls-2nd-stimulus?page=1  The report is undated; however, there is not one single comment dated before June 1 and it appears in Google search results as illustrated above. [Posted 16 hours ago]. 

Better late than never?  Fox is late with their report but their post on the subject has yielded over 120 comments all on the similar order of opposing a second stimulus.

If there are any unemployed out there who want to attempt to talk reason to the neocons - do so at your own risk. These persons are those helping stand in the way of a second stimulus that would include unemployment benefits.  Nearly every comment opposes federal spending and a second stimulus. 

These voices are what lawmakers are hearing from as a majority apparently.  Read these comments and feel free to join in and let these people know they are full of it in respect to the needs of a second stimulus. 

There has to be a conservative who sees the need for a second stimulus for unemployment insurance who reads this blog and also is a fan of Fox News.  The unemployment club is not a "democrat only" club here. 

When people lose the will to speak up and out on these issues the environment for "no political will" prevails.  As Congress is on vacation for the week and it appears this blogger is a full week ahead of Fox News on this story - there's nothing better to post today other than the reasons why a second stimulus would not happen and that's reflected in the comment section of this:  http://www.thefoxnation.com/larry-summers/2010/06/01/obama-adviser-calls-2nd-stimulus?page=1

Main Street Needs A Bailout - Let's Take The Message Directly To The President

If Congress will not take up the issue of the needs of the long term unemployed, there is only one other place to turn - the United States President, Barack Obama. 

This message is targeted directly to the President of the United States, Barack Obama.  The message mentions the petition, "99ers Need A Tier 5",which was delivered to the staffer of Harry Reid and it also mentions the recent testimony given Monday, May 24, 2010 requesting a second stimulus.  This message is straight to the point by emphasizing that Mr. Summers is right on this one and to prevent a backslide in the economy, Main Street does need a bailout.  In the message, the gridlock of the two political parties is mentioned and with this year being an election year, that fact is the reason the longest term unemployed are not able to easily receive assistance from Congress. 

The message asks the President to do anything within his legislative and executive authority to accomplish the goal of extending unemployment benefits to everyone who has been unemployed through no fault of their own through the end of this year.  If the Congress does not have the 'political will' to take this issue up then the President can help to create this 'political will' by advocating on our behalf so that all Americans - employed or unemployed understand the need for this second stimulus.  Persons cannot wait until November for a solution that might happen.  Americans hardest hit need some type of security now.

Whether or not this petition gets signatures depends on those who care to continue advocating for a Tier 5 Unemployment Extension.  Even if you do not want to participate in the form of another petition, please take the time to contact the President with either this message or your own message.  There are multiple ways to contact the White House. 

Here are the links which take you directly to contact pages for the President. 

The offiical page to contact the President of the United States by email is at:  http://www.whitehouse.gov/contact

You can also contact the President by US Mail: 
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
(Please include your e-mail address in your letter)

You can contact the President by Phone:
Comments: 202-456-1111
Switchboard: 202-456-1414
FAX: 202-456-2461
TTY/TDD
Comments: 202-456-6213
Visitors Office: 202-456-2121

You can also send this message or a similar message to these social networking sites: 

Facebook:  http://www.facebook.com/WhiteHouse

Twitter:      http://twitter.com/whitehouse

Myspace:   http://www.myspace.com/whitehouse

Linked In:  http://www.linkedin.com/groups?gid=2199632

It may be useful to use all of these sources for contacting the President.  If you have access to the Internet, all of these resources are free to use.  If you know someone who is unemployed, feel free to print this so that they have the telephone and US Mail address to use. 

The goal is not to just simply have a petition with a lot of signatures.  The goal is to encourage the President and let him know that the American people support a second stimulus as states are cash-strapped, over a million will have exhausted benefits by November, and there is an unfair amount of expectation that exists for the unemployed by not continuing unemployment insurance until there are enough jobs for every American.

The success of the Main Street Needs A Bailout campaign will depend solely on the grassroots efforts of the Americans who see this need and are willing to de-politicize this issue until the jobs return.  Please help to spread awareness about this petition by posting this petition on all social networking sites and re-posting to as many places as you can find where the unemployed can see this campaign and participate.

The full text of the message is located here:  http://www.change.org/petitions/view/main_street_needs_a_bailout_ and reads as follows:

The Americans who have became the hardest hit by the Great Recession are writing you today to tell you that we need a bailout and additional temporary stimulus funds - and we need your support and we need you to tell our story to the American people.  The longest term unemployed [those who have exhausted the maximum of 99 weeks of benefits (as you know some states received less)].  In the last extension, the state of Texas did not receive benefits and if you do the math, an unemployment rate of 8.0% in Texas is nearly two million Texans who were excluded from the previous extensions.


Mr. President, we know that you have received a petition regarding this matter previously and this is documented by many online reputable sources as well as the Huffington Post (which you have mentioned in some of your press conferences) and on Friday, May 28, the Speaker of the House, Nancy Pelosi made the statement, "Congress will not take up any measure to give the long-term jobless more weeks of unemployment benefits beyond the 99 weeks available in some states."


As you know Mr. President, the country has lost millions of jobs and although the recent jobs report is encouraging, we still have a job shortfall in this country.  The American people are asking that you continue to make job creation a high priority in your Administration.  Additionally, we also ask that you find a way to extend unemployment benefits for everyone who is unemployed and would qualify for the unemployment insurance benefit - at least until the end of this year.  If there were enough jobs for every American we would not be asking this as we do not wish to depend on government; but it must be understood by everyone in Washington that the persons who have lost their jobs due to no fault of their own did not cause this financial collapse and they are depending on this funding and even your own Chief Economic Advisor, Lawrence Summers, made a plea for a second stimulus on Monday, May 24.  This was also made known to the public at:  http://www.huffingtonpost.com/wires/2010/05/25/obama-administration-call_ws_588404.html


Mr. President, the persons who have started this protest are very active in our communities, we do vote, and we have an understanding that the reason this has not been done for the American people is political.  The funding of unemployment insurance should not be a political issue.  As you know, Mr. President the states do not have the funding for this assistance and the current systems for unemployment compensation are out-dated and not designed to handle issues of this magnitude.


This would be the perfect opportunity to consider a second stimulus as Lawrence Summers has suggested and give states the funding to pay for an extension of unemployment insurance benefits until the end of this year when there is a more fair playing field when competing for the jobs that are available.  When these Americans who are now jobless were laid off unexpectedly from their jobs - they were given no notice.  We ask for a notice from the federal government as to when the benefits officially end and we ask that the partisan bickering in Washington, D.C. over the issue comes to an end.


In the United States Senate, there seems to be an equal number of Senators in high unemployment states relative to political affiliation.  Each and every month there should not be this piecemeal approach to extending the tiers available that already exist for the unemployed.  There needs to be a concrete resolution and a resolution which further extends the weeks available for those who have exhausted benefits until more jobs are created and the playing field for finding meaningful employment is more fair.  In urban area, the unemployment rates are well at or above nearly 15% and these are the absolute hardest-hit areas.  Rural areas were hit hard as well and also need this assistance.


Mr. President, we acknowledge that there have been very admirable job gains in the past few months and we are all hoping for this to continue each and every month.  But even by the end of this year, there will not be anywhere near the amount of jobs created that the country has lost.  Mr. President, please fund a bailout of Main Street.  Please be vocal and fired up about this.  The Congress is being too partisan to get this passed and it is an election year.  With the most sincere intentions, Mr. President, please take up this cause and make it a top priority to complete now as an emergency gesture for the unemployed.


These Americans already received a pink slip with no notice from their employer and for the past two years have had limited or no opportunity or they would still not be needing unemployment insurance.  Each and every individual has been qualified by their state to receive the benefit - or they would not be receiving this benefit to begin.  Please extend unemployment benefits for everyone through the end of this year.  If it is decided at that time that funding can no longer be provided, please give the American people a notice so that they can plan accordingly.


Do this to prevent a possible backslide of the economy and help avoid a double dip recession.  Please follow the advice of your Chief Economic Adviser, David Summers and authorize a second stimulus.  Please do this for the millions of Americans who will exhaust their benefits this year and will be trying to compete in a very rare, challenging, and unfairly competitive job market.


Please do this as soon as possible for millions of Americans who have been reduced to poverty through no fault of their own.  This is an emergency as we ask that you treat the matter as such.

Warmest Regards,

Please share this message with as many persons as you know.  While the news is still fresh that Mr. Summers has requested a second stimulus, it is worthwhile to send the President a message of support for this stimulus and the need to further extend unemployment insurance benefits to all states.


You can sign this petition using the widget on the sidebar, or visit the site where this full text is located at:  http://www.change.org/petitions/view/main_street_needs_a_bailout_

Obama Administration Has Called For Additional Unemployment Insurance Included In Second Stimulus Act (a.k.a. "Mini" Stimulus) - #tier5 #unemployment

Not that members of the Tea Party movement will agree that there is anything "mini" about up to $300 billion dollars of deficit spending, it's being called for by the Obama Administration anyway.  This news should excite each and every reader out there who is seeking additional weeks available for unemployment benefits as this is the strongest signal from the Obama Administration that the unemployed are being heard. 

Today some very encouraging news emerged and since there are more than three sources reporting on it, it is definitely worth bringing to the attention of the unemployed - especially the long term unemployed who have felt abandoned in recent months.


Both Newsweek's article:  Economoist's Agree:  Unemployment Will Stay High Through November and the Financial Times article Obama adviser calls for new mini-stimulus are stating that the second stimulus requested on Monday, May 24, 2010 by the Obama Administration is calling for an extension of unemployment benefits. 

So, if H.R. 4213 is geared to assist the existing tiers through the remainder of the year, what else can this extension referenced be other than additional weeks available to the unemployed?  The second stimulus also being newly known as a "mini-stimulus" is seeming more and more like the vehicle that will be used for a possible Tier V unemployment extension or adding additional weeks to current tiers. 

The testimony given Monday by Lawrence Summers, Barack Obama's Senior Economic Advisor, stated to the United States House of Representatives the following statements: 

“I cannot agree with those who suggest that it somehow threatens the future to provide truly temporary, high-bang-for-the-buck jobs and growth measures,” he said. “Spurring growth, if we can achieve it, is by far the best way to improve our fiscal position.”

“The observation that the economy is again ascending does not mean that we are out of a very deep valley,” said Mr Summers.

As covered by Financial Times, Nancy Pelosi, Speaker of the House stated: 

“We look forward to reviewing the president’s proposal and working together to do what’s right for our nation’s fiscal health and security,”

Newsweek reports that all three major economic groups that have leverage in Congress:  the left-leaning Economic Policy Institute (EPI), the centrist Brookings Institution, and the conservative Heritage Foundation are all in agreement that the national unemployment rate will hover around 10% through the remainder of this year and definitely through the midterm elections.

The full Newsweek article being referenced is at:  http://blog.newsweek.com/blogs/thegaggle/archive/2010/05/25/economists-agree-unemployment-will-stay-high-through-november.aspx

Josh Bivens of EPI, advocates a second stimulus bill on the order of $300 billion that would extend unemployment benefits and food stamps, and subsidies for laid-off workers getting their health insurance through COBRA, plus fiscal relief to states facing recovery-killing budget cuts or tax increases.

According to the Newsweek Article, Bivens stated, "We missed our window", when referring to whether or not this action to provide tax cuts to small business to spur job creation would make an impact before the November midterm elections. 

James Sherk of the Heritage Foundation states that the president should encourage private wealth creation through tax cuts and tort reform to protect corporations against the costs of battling lawsuits. But he admits that this would take a while to boost employment figures.  Mr Sherk stated: "The economy moves at a slow pace."  (This will be the opinion taken by the Republican party and as was noted above, reflects the conservative-leaning Heritage Foundation's assertion). 

In these articles it is stated that the second stimulus proposed by the Obama Administration is necessary to avoid a double dip back into the recession and sustain any amount of growth. 

If you have exhausted your benefits, you know this.  You know as well as anyone that without a job available to you and without assistance from unemployment insurance the economy will sink.  This is the bailout Main Street needs and according to Mr. Bivens from EPI, economists missed the mark to make a difference by about four or five months.  Does this sound about right to some of you?  Would it have helped to know four months ago (in early February), that your benefits would not be expiring and you could continue to pay for basic necessities that assistance through unemployment insurance can provide? 

No one should be claiming a victory here.  But this is some of the most encouraging news in recent months that signals to the unemployed how the Obama Administration and Democratic Leadership will address the needs of the long term unemployed who have exhausted benefits or will exhaust benefits very soon. 

As we have learned today, it seems the most likely route is going to be the passage of H.R. 4213 for those who have not used the maximum amount of benefits currently available through the end of this year.  And for those who have exhausted benefits or will exhaust benefits very soon, Stimulus Bill #2 is reported to cover unemployment extensions.  It seems logical that the bill that will cost over $300 billion dollars is the bill that will extend out weeks of benefits. 

We need this bill titled and in the finance committees as soon as possible.
Obviously, the full text of the bill for the "Second Stimulus" needs to be presented and when this happens it will likely then be reported by larger media outlets.  Right now it is just a proposal by the Chief Economic Advisor to the White House, Lawrence Summers. 

This additional glimpse of hope is reason to keep going advocates.  Keep the petitions strong and keep advocating for a Tier 5 unemployment extension so that it is quickly clear the long term unemployed are advocating for extending weeks.  Keep your telephone calls, emails, and faxes going to Congress.  There may very well be a form letter referencing this newly introduced measure very soon in replies.

Those who are advocating for extended weeks of unemployment benefits have came too far to let these efforts die down quite yet.  Not until there is a bill on the floor.  (And still even then to counter any Republican objections).  We must not relent until this legislation is passed.

The Newsreel at the top is ticking both Google queries:  Second Stimulus & H.R. 4213.  Both of these stories should be of interest to the unemployed out there seeking information.  If anyone finds any other links that are reporting a similar story in respect to unemployment benefits being in Stimulus II, please post that in the comments for other unemployed readers to see. 

Thanks everyone for doing what you do and helping to make this a reality.  I am hopeful that there will be a bill number to reference soon.  Remember, this was just introduced on Monday.  The story just broke on this today.  There's much more information to find out before anyone can say they know the full story. 

As more information is learned, this blog depends on contributions from its readers in comments and references from verifiable news sources.  Thanks in advance for your support out there and keep your eye open for any article mentioning a Second Stimulus.

Photo:  Washington Monument photographed from the steps of the Lincoln Memorial, US Unemployed Blogsite

Obama Administration Calls For Second Stimulus #Tier 5 #Unemployment

http://www.minyanville.com/businessmarkets/articles/stock-market-dow-jones-obama-congress/5/25/2010/id/28458

http://www.ft.com/cms/s/0/69bb33d8-678b-11df-a932-00144feab49a.html

By Matt Theal | May 25, 2010 8:30 am

As the stock market begins to show signs of the bear, policy makers look to a new $200 billion stimulus package.

“His plan calls for more loans made to small businesses, an extension of unemployment insurance, and aid to states to prevent teacher layoffs. The announcement is expected to be met by resistance in Washington as right now Congress is looking for ways to cut spending, not increase it.”

This blogger is waiting for more news sources to cover this story and a full article will be posted.  A second stimulus is being requested from an Obama Administration official and we should take this news cautiously optimistic.  We do not yet have the full details or a bill to reference.  This is just raw information as it comes in for readers to stay informed.