Obama Weighs Spending to Stem Job Cuts Without Second Stimulus

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This does not do much for ‘jobs’ but it is pretty good for financial markets.

Low wages, high productivity growth and a bit of top line growth makes for happy management and investors. And a continuing flow of real wealth from the bottom to the top.

Obama Weighs Spending to Stem Job Cuts Without Second Stimulus

By Mike Dorning and Nicholas Johnston

Oct. 6 (Bloomberg) — President Barack Obama is considering a mix of spending programs and tax cuts to respond to widening job losses that would amount to an additional economic stimulus without carrying that label.

Contradictory Missions

In considering the measures, the administration has to reconcile two potentially contradictory missions: combating rising unemployment through government intervention and the need to hold deficits down.

White House Press Secretary Robert Gibbs yesterday highlighted those political sensitivities, saying there “were no plans” for a second stimulus like the $787 billion package passed earlier this year. Instead, he said, the administration is looking at “extensions” of existing programs.

The Obama administration isn’t near a final decision on additional measures, said Jen Psaki, a White House spokeswoman.

“As they continue to explore the best options, any notion that we are any farther along than preliminary discussions about new proposals is wildly inaccurate,” she said.