Liberals Likely to Call for Another Stimulus

Posted July 2, 2009 at 4:45pm

A leading House liberal says he is likely to call for another stimulus package after today’s dismal unemployment news.

“The Congressman will most likely call for a bigger stimulus package,— said Natalie Luna, spokeswoman for Rep. Raúl Grijalva (D-Ariz.), co-chairman of the Congressional Progressive Caucus. “He has no doubt that with the new numbers coming out that a stimulus package and other things that Congress can do to alleviate the high unemployment numbers would be a good thing,— she said.

Unemployment hit 9.5 percent in June, the highest in a quarter century.

Luna noted that Progressive Caucus members had sought a much larger package to begin with.

The Progressive Caucus initially wanted a $1 trillion package focused mostly on spending, but in a deal to get the support of three Senate Republicans, the package came in at $787 billion with tax cuts making up a large piece.

So far, the Obama administration and Democratic leaders have resisted talk of another stimulus, arguing that the initial plan is still rolling out and needs time to work.