Word of the Week

Word of the Week

"Second stimulus"

By Amy Tennery
Posted Friday, July 10, 2009 - 2:54pm

This week the word(s) on everyone's lips were second stimulus. As the recession drags on, financial experts have floated the idea of a follow-up funding package (although, as this WSJ article points out, this proposal would be the third stimulus package since the crisis began). Heated debate has ensued. Predictably, the GOP has been unenthused. Sen. Harry Reid all but put the kibosh on the idea on Tuesday. But Warren Buffett praised the proposed spending, likening the first package to "half a tablet of Viagra," as opposed to a whole dose.

All together now: ew.

While the term itself isn't that hard to grasp (we had one stimulus ... now we might have another), it's won a spot as this week's word because it's spawned a new mini-vocabulary. This week Rep. Tom Price launched a counterassault on the possible spending, a move that he has dubbed the "Reducing Barack Obama's Unsustainable Deficit Act."

"The first step is to cancel the spending portion of the stimulus package and recall the $460 billion that has not yet been spent," said Rep. Price in a written opinion.

With around 85 percent of the initial stimulus funds still unspent, the "Reducing Barack Obama's Unsustainable Deficit Act" would aim to recall the remaining funds and to slow government spending.

The second stimulus has also sparked debate about the first stimulus's goals and their execution. Much of the stimulus funding for transit, for example, has gone to rural areas instead of urban regions, where some feel it's more necessary. And "stimulus round two" could have a tough time finding support, as much of the first stimulus funds are still unspent, sparking comparisons to the Richard Pryor movie Brewster's Millions.

  • Amy Tennery is a proud former intern of The Big Money. She is currently an editorial assistant at The Real Deal and can be reached at at@therealdeal.com.

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