White House Shows New Openness About Second Stimulus

October 21, 2008 10:22 a.m. EST

Washington, D.C. (AHN) - The White House on Monday indicated a new openness about a second economic stimulus package. The President's willingness to consider such legislation came after Federal Reserve Chairman Ben Bernanke expressed support for a second economic stimulus bill.

Speaking during a press briefing, presidential spokesperson Dana Perino said the White House has "had an open mind" about Democratic calls for a second stimulus, but that the administration is focused on implementing the $700 billion financial rescue package passed by Congress earlier this month.

"But we're continuing to have conversations with members of Congress and we're open to ideas that they would put forward that would -- both Democrats and Republicans alike -- that would stimulate the economy and help us pull out of this downturn faster," she added.

Perino had previously cited spending in infrastructure as one of the provisions of a proposed second stimulus bill from Democrats that the White House "did not think would actually stimulate the economy."

Bernanke told the House Budget Committee earlier that day that "consideration of a fiscal package by the Congress at this juncture seems appropriate."

President George W. Bush discussed the economy during a speech before the Central Louisiana Chamber of Commerce the same day but made no mention a second stimulus package.

"A lot of the people down here and other parts of the country are wondering why a free market-oriented President made the decisions to -- necessary to get the government buying stocks in banks, for example... If I felt that the crisis could be contained in Wall Street, then I'd have taken a different course of action," he said.

"I can say this with confidence to the people out here - that I think we're going to get -- be able to get most of your money back... because the government is really making investments," Bush added.

Congress passed a $168 billion stimulus package in February that allowed the government to give tax breaks to companies and send rebate checks worth $300 to individuals and $1,200 to every family.

Democrats heightened their calls for a $50 billion second economic stimulus package in September as financial crisis deepened with the disappearance of two of the nation's largest investment banks, Lehman Brothers and Merrill Lynch. They were able to pass a $61 million stimulus package in the House but were blocked in the Senate.

House Speaker Nancy Pelosi (D-CA) earlier this month called for a second stimulus plan worth $150 billion, but last week she said after a Democratic economic forum that the cost of the package would be decided over the next month.

Pelosi said in a statement Monday, "I call on President Bush and Congressional Republicans to once again heed Chairman Bernanke's advice and as they did in January, work with Democrats in Congress to enact a targeted, timely, and fiscally responsible economic recovery and job creation package."

House Minority Leader John Boehner (R-OH) has called Pelosi's $150 billion proposal "irresponsible" and proposed an alternative approach that he said would encourage economic growth and job creation through tax relief and increased energy production.