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Obama team considers $850 billion stimulus - Economy in Turmoil- msnbc.com
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id="linkImgRelatedPhotos"><img src="http://web.archive.org/web/20081218065540im_/http://msnbcmedia4.msn.com/j/ap/c64cd6ba-f8b4-41df-9a79-5320b7b4ae0d.hmedium.jpg" border="0" style="border:1px solid #000000;" vspace="0" hspace="0" title="Image: Barack Obama" alt="Image: Barack Obama"></a></td><td valign="bottom" width="99%"><div class="caption" style="padding:25 10 0 15;">President-elect Barack Obama is promoting a recovery plan that would feature spending on roads and other infrastructure projects, energy-efficient government buildings, new and renovated schools and environmentally friendly technologies. </div><div style="clear:both"></div><div class="" id="viewRelatedPhotosLink" style="display:none;padding:0 10 0 15;"><a id="linkRelatedPhotos" href="/web/20081218065540/http://www.msnbc.msn.com/id/28281029/displaymode/1176/rstry/28278398/"><img src="/web/20081218065540im_/http://www.msnbc.msn.com/images/icons/slideshow.gif" width="20" height="14" vspace="0" border="0" style="margin-bottom:-2px"></a> <a href="/web/20081218065540/http://www.msnbc.msn.com/id/28281029/displaymode/1176/rstry/28278398/" class="textMedBlackBold">View related photos</a></div><script>var hasRelatedPhotos = 'true';if (hasRelatedPhotos=='true'){var vRPL = document.getElementById("viewRelatedPhotosLink");if (vRPL!=undefined) vRPL.style.display = "";var vLRPG = document.getElementById("linkRelatedPhotos");var vLIRPG = document.getElementById("linkImgRelatedPhotos");if (vLRPG) {if(vLIRPG) vLIRPG.href=vLRPG.href;}}</script></td></tr><tr><td><div class="credit aR">AP</div></td><td></td></tr></table><div class="p12"><div class="WCCol w300 fR clrR"><div style="padding-bottom:20px"><span cm="AutoBox"><script>getCSS("3088867")</script><div style="width:300;" class="box_3088867 cbx cbx-auto" ct="abx" cn="Video: Economy in turmoil" pn="Wall Street Meltdown"><script></script><table width="300" cellspacing="0" cellpadding="0" class="boxH_3088867"><tr><td width="1%" class="boxHI_3088867"><img src="http://web.archive.org/web/20081218065540im_/http://msnbcmedia2.msn.com/i/msnbc/Components/ColorBoxes/Styles/img/video_icon_v2.gif" border="0" height="14" width="28" vspace="0" hspace="0"></td><td width="*" nowrap class="boxHC_3088867"><div class="hauto textSmallBold">Video: Economy in turmoil</div></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxB_3088867"><tr valign="top"><td><div style="float:right;margin-left:10px;text-align:right;"><a href="javascript:vPlayer('28285024','9144103f-7506-434f-9c55-a45306bb5283')"><img src="http://web.archive.org/web/20081218065540im_/http://msnbcmedia1.msn.com/j/MSNBC/Components/Video/081217/nn_01regan_maddof_081217.thumb.jpg" border="0" style="border:1px solid #000000;" vspace="0" hspace="0"></a></div><div><div class="textHang" style="padding:5px;"><span class="textMed"><b><a href="javascript:vPlayer('28285024','9144103f-7506-434f-9c55-a45306bb5283')">Madoff under house arrest</a></b></span><br><span class="textMed">Dec. 17: Legendary money manager Bernard Madoff, accused of the biggest fraud in the history of Wall Street, was placed under house arrest by a judge Wednesday as the head of the SEC acknowledged his agency blew it when it came to his case. CNBC's Trish Regan reports.</span></div></div><hr size="1" width="95%" align="center" color="#cccccc" style="clear:all"></td></tr><tr valign="top"><td class="boxBI_3088867"><div class="textHang" style="padding-bottom:3px;"><span class="headlineList2"><a href="javascript:vPlayer('28275812','1f3bf285-f6df-4f5a-a0fa-b0542d63cbdf')">Has the Fed run out of options?</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="headlineList2"><a href="javascript:vPlayer('28270163','7c96be28-82c6-4b4d-824e-cb03962d2206')">Bailout's big loophole</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="headlineList2"><a href="javascript:vPlayer('28266905','d552ebbd-f52a-4c27-8422-ee092906a151')">Keeping the economy afloat</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="headlineList2"><a href="javascript:vPlayer('28266742','a06c7b78-19f9-42e3-b4a5-bc24fea52761')">Going to zero</a></span></div></td></tr></table></div></span></div><div pcid="0" style="padding-bottom:20px;"><script>getCSS("3060335")</script><div style="width:300;" class="box_3060335 cbx cbx-data" ct="dbx" cn="3060654" pn=""><script></script><table width="300" cellspacing="0" cellpadding="0" class="boxH_3060335"><tr><td width="*" nowrap class="boxHC_3060335"><div class="hauto textSmallBold"> Market update</div></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxB_3060335"><tr valign="top"><td class="boxBI_3060335"><script type="text/javascript" src="http://web.archive.org/web/20081218065540js_/http://msnbc.msn.com/databox/data.aspx?dbid=3060654&s=$INDU,$COMPX,$INX&js=1&"></script></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxF_3060335"><tr><td class="boxFI_3060335"><div class="textSmall">Data: <a href="http://web.archive.org/web/20081218065540/http://go.msn.com/intg/397.asp?target=http://moneycentral.msn.com/partner/redir/msnbc.asp%3Fsource%3Dstockdata">MSN Money</a> and <a href="http://web.archive.org/web/20081218065540/http://www.comstock-interactivedata.com/">ComStock</a> </div></td></tr></table></div></div><div pcid="0" style="padding-bottom:20px;"><script>getCSS("3053751")</script></div><div style="padding-bottom:20px"><script>getCSS("3088874")</script><div style="width:300;" class="box_3088874 sitewrapperbox cbx cbx-int" ct="its" cn="Who's to blame? " pn=""><script></script><table width="300" cellspacing="0" cellpadding="0" class="boxH_3088874"><tr><td width="1%" class="boxHI_3088874"><img src="/web/20081218065540im_/http://www.msnbc.msn.com/images/icons/interactive.gif" width="20" height="14"></td><td width="*" nowrap class="boxHC_3088874"><div class="hauto textSmallBold">Interactive </div></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxB_3088874"><tr valign="top"><td height="100%"><div style="text-align:middle;height:100%;width:100%;background-color:#cccccc;background-image:url('/web/20081218065540im_/http://www.msnbc.msn.com/images/backgrounds/component_dkgrey.gif');text-align:center;"><a href="http://web.archive.org/web/20081218065540/http://www.msnbc.msn.com/id/27183355/ "><img src="http://web.archive.org/web/20081218065540im_/http://msnbcmedia.msn.com/j/msnbc/Components/Interactives/_swf/Business/Who_Is_To_Blame_IMAX/TZ_STD_WhoToBlame.vsmall.jpg" border="0" style="border:1px solid white;" vspace="0" hspace="0"></a><div class="scalAd"><input type="button" class="mbox w77" value="Launch" title="Launch" onmouseover="swapbtn(this, 1)" onmouseout="swapbtn(this, 0)" onclick="javascript:window.location.replace('http://web.archive.org/web/20081218065540/http://www.msnbc.msn.com/id/27183355/');"></div></div></td><td class="boxBI_3088874"><div class="textHang"><span class="textMedBlackBold"><a href="http://web.archive.org/web/20081218065540/http://www.msnbc.msn.com/id/27183355/ ">Who's to blame? </a></span><br><span class="textMed">A look at some of the entities behind the meltdown of the financial system. </span></div></td></tr></table></div></div></div><div class="CCol w160 fR clrR"><div pcid="0" style="padding-bottom:20px;"><img src="http://web.archive.org/web/20081218065540im_/http://switch.atdmt.com/action/msnus_msnbc_business_040607" height="1" width="1"></div></div><div class="mR165"><div><img src="http://web.archive.org/web/20081218065540im_/http://msnbcmedia1.msn.com/i/msnbc/Components/Sources/Art/APTRANS.gif" border="0" height="20" width="140" vspace="0" hspace="0"><div class="textTimestamp"><span id="udtD">updated <span class="time">8:28 p.m. ET </span><span class="date">Dec. 17, 2008</span></span><script language="javascript"> function UpdateTimeStamp(pdt) { var n = document.getElementById("udtD"); if(pdt != '' && n && window.DateTime) { var dt = new DateTime(); pdt = dt.T2D(pdt); if(dt.GetTZ(pdt)) {n.innerHTML = dt.D2S(pdt,((''.toLowerCase()=='false')?false:true));} } } UpdateTimeStamp('633651605170430000');</script></div></div><p class="textBodyBlack"><span id="byLine"></span>WASHINGTON - Eager to jolt a worsening economy back to life, President-elect Barack Obama's aides are assembling a two-year stimulus package that could cost $850 billion, dwarfing last spring's tax rebates and rivaling drastic government actions to fight the Great Depression in the 1930s. </p><p class="textBodyBlack"><span id="byLine"></span>The emerging plan is blend of new jobs, middle-class tax relief and expanded aid for the poor and the unemployed, congressional officials said Wednesday. </p><p class="textBodyBlack"><span id="byLine"></span>Obama has not settled on a grand total, and the final figure could be smaller. But after consulting with outside economists of all political stripes, his advisers have begun telling Congress the stimulus should be bigger than the $600 billion initially envisioned, the officials said. </p><div class="aC" id="AdShowcase_F1"><div class="textSmallGrey w320"><a href="#storyContinued">Story continues below ↓</a><hr noshade size="1">advertisement | <a href="http://web.archive.org/web/20081218065540/http://www.msnbc.msn.com/id/26613008/">your ad here</a><div style="padding:0 10 10 10;"><script type="text/javascript">dap('&PG=NBCMSB&AP=1089','300','250');</script></div><hr noshade size="1"></div></div><a name="storyContinued" id="AdShowcase_F2"></a><p class="textBodyBlack"><span id="byLine"></span>Obama is promoting a recovery plan that would feature spending on roads and other infrastructure projects, energy-efficient government buildings, new and renovated schools and environmentally friendly technologies. </p><p class="textBodyBlack"><span id="byLine"></span>There would also be some form of tax relief, according to the Obama team, which is well aware of the political difficulty of pushing such a large package through Congress, even in a time of recession. Any tax cuts would be aimed at middle- and lower-income taxpayers, and aides have said there would be no tax increases for wealthy Americans. </p><p class="textBodyBlack"><span id="byLine"></span>While some economists consulted by Obama's team recommended spending of up to $1 trillion over two years, a more likely figure seems to be $850 billion. There is concern that a package that looks too large could worry financial markets, and the incoming economic team also wants to signal fiscal restraint. </p><p class="textBodyBlack"><span id="byLine"></span>In addition to spending on roads, bridges and similar construction projects, Obama is expected to seek additional funds for numerous programs that experience increased demand when joblessness rises, one Democratic official said. </p><p class="textBodyBlack"><span id="byLine"></span><table cellpadding="0" cellspacing="0" border="0" align="right" style="padding:5 0 0 15;"><tr><td><span cm="AutoBox"><script>getCSS("3053751")</script><div style="width:300;" class="box_3053751 cbx cbx-auto" ct="abx" cn="Economy in Turmoil" pn=""><script></script><table width="300" cellspacing="0" cellpadding="0" class="boxH_3053751"><tr><td width="*" nowrap class="boxHC_3053751"><div class="hauto textSmallBold"> Economy in Turmoil</div></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxB_3053751"><tr valign="top"><td><div style="float:right;margin-left:10px;text-align:right;"><a href="/web/20081218065540/http://www.msnbc.msn.com/id/28269487/" id="gted" ce="1"><img src="http://web.archive.org/web/20081218065540im_/http://msnbcmedia2.msn.com/j/MSNBC/Components/ArtAndPhoto-Fronts/BUSINESS/Projects/Economy_turmoil/EconomyInTurmoil-tz-std-dollar2.thumb.png" border="0" vspace="0" hspace="0"></a></div><div><div class="textHang" style="padding:5px;"><span class="textMed"><b><a href="/web/20081218065540/http://www.msnbc.msn.com/id/28269487/" id="gted" ce="Highlight1">Curfew for Madoff as new condition of bail</a></b></span><br><span class="textMed">The judge in the fraud case of Wall Street money manager Bernard L. Madoff has set new conditions for his bail, including a curfew and an ankle-monitoring bracelet.</span></div></div><hr size="1" width="95%" align="center" color="#cccccc" style="clear:all"></td></tr><tr valign="top"><td class="boxBI_3053751"><div class="textHang" style="padding-bottom:3px;"><span class="headlineList2"><a href="/web/20081218065540/http://www.msnbc.msn.com/id/28278398" title="Updated" class="icoUpd" name="icon_U" ic_cd="633651605170430000"> </a> <a href="/web/20081218065540/http://www.msnbc.msn.com/id/28278398/">Obama team considers $850 billion stimulus</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="headlineList2"><a href="/web/20081218065540/http://www.msnbc.msn.com/id/28284857/">Fed’s rate cut won’t help most credit card users</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="headlineList2"><a href="/web/20081218065540/http://www.msnbc.msn.com/id/28285195/">Obama reportedly decides on head of SEC</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="headlineList2"><a href="/web/20081218065540/http://www.msnbc.msn.com/id/28269485/">Paulson sees financial situation stabilizing</a></span></div></td></tr></table></div></span></td></tr></table></p><p class="textBodyBlack"><span id="byLine"></span>Among those programs are food vouchers and other nutrition programs, health insurance, unemployment insurance and job training programs. </p><p class="textBodyBlack"><span id="byLine"></span>Obama advisers have been contacting economists from across the political spectrum in search of advice as they assemble a spending plan that would meet Obama's goal of preserving or creating 2.5 million jobs over two years. </p><p class="textBodyBlack"><span id="byLine"></span>Among those whose opinions Obama sought were Lawrence B. Lindsey, a top economic adviser to President George W. Bush during his first term, and Harvard professor Martin Feldstein, an informal John McCain adviser and the chairman of the Council of Economic Advisers under President Ronald Reagan. </p><p class="textBodyBlack"><span id="byLine"></span>Feldstein recommended a $400 billion investment in one year, Obama aides said, and Lindsey said the package should be in the range of $800 billion to $1 trillion. The aides revealed the discussions on condition of anonymity because no decisions had been reached. </p><div class="t1 f70 c666 p7"><span cm="PageNavBot"><a class="b" id="gted" ce="2" href="/web/20081218065540/http://www.msnbc.msn.com/id/28278398/page/2/"> CONTINUED : 'We want to do it very quickly'</a><hr size="1"><div class="fL pS">1 | <a class="b" id="gted" ce="2" href="/web/20081218065540/http://www.msnbc.msn.com/id/28278398/page/2/">2</a> | <a class="b" id="gted" ce="2" href="/web/20081218065540/http://www.msnbc.msn.com/id/28278398/page/2/">Next ></a></div></span></div><br><div id="stryTools" class=""><ul><li class="discuss"><a href="http://web.archive.org/web/20081218065540/http://www.newsvine.com/" title="Discuss this article on Newsvine" onclick="javascript:seedNewsvine('Obama team considers $850 billion stimulus','Eager to jolt a worsening economy back to life, President-elect Barack Obama\'s aides are assembling a two-year stimulus package that could cost $850 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