No to Stimulus 2.0?

" First is stimulus 2.0 coming soon. I'm Jennifer Griffin in for Greta Van Susteren 787. Billion dollars later some Democrats say. We need another one to save the economy Republicans see it as a mid term election rallying cry so who's right we have both sides covered first senator Richard Shelby is here with me in Washington. He's the ranking Republican on the Senate banking committee he opposes any talk of any more stimulus senator thanks for being here thank you. Now I remember what you said about the first stimulus he said it was a disgrace I can only imagine what you think about this talk of a second stimulus. Why is this not a good idea."

" Well it's not a good idea of fun a lot of reasons but one. Of this stimulus we have put together that -- most of the money has not even been spit you know in other words a stimulus. Has not been implemented yet. And now they're talking about another one. In I think it's a dumb idea I think -- will not work for most economists I wouldn't say almost becomes so overwhelming majority. Would say we don't need a stimulus and even the Washington Post today. In an editorial he may have seen -- Question. The and in that big win under Obama and now they're talking about another win. My goodness. Washington Post. -- said basically don't want quote -- Innocence. They were concerned about the -- credit worthiness of our paper down the road no -- bonds if we continued to borrow and borrow. I believe."

" We cannot borrow our way to prosperity. -- what I don't understand is why so little of this 787. Billion dollars has been spent about 10% that has been spent. And we were told at the time when this was rushed through in February that these -- the shovel ready projects why only 10%."

" Well just wouldn't say talk about show radio obviously a lot of shuttles were ready. And to put people back to work to be allow these things. And there's a lot of politics in this stimulus is we don't know. Democratic politics I thought that was a mistake I know a second stimulus would be a mistake because we don't borrow that money. And and he won't turn the economy around. A lot of things will turn the economy around but I don't -- stimulus will."

" Treasury Secretary Timothy Geithner was on the hill today he was. Meeting before an oversight committee hearing here's what he said let's hear your response."

" The city this package is on its expected path in terms of the rate of change and it in terms of put money in the pockets of taxpayers. To provide substantial forms of this is the states to reduce the risk that they're forced to fire tens of thousands of teachers -- as a fireman. And that there are very substantial investments in infrastructure products. It started to -- already started take effect and we'll have their maximum impact on the economy in the second half of this year. So my own sense is I think this is the consensus of broad based economists that there has been substantial improvements. In arresting. What was the worst recession globally we've seen in generations and those are the result of the actions this congress took. Administration put in place and complementary actions taken by governments around the world. To get help address what is the worst crisis we've seen in a long period of time."

" Do you agree that the crisis would have been worse if that happens then this stimulus package. I don't agree I think that. That would be seen out there. Because we are in you know. A world recession you know contraction in the economy. But the sooner. We face to this and the sooner we straighten outer banks. That's the key -- where planes can start lending there's a liquidity crisis in this country even after the tar. Bill out of the banks a lot of banks aren't lending small medium size businesses are dying for capital and for credit. And that hasn't happened yet sector guy who knows it too. Well the Washington Post is reporting tonight that in fact the Obama administration is considering using some of the banking money. For small businesses -- is that the answer well I don't know it's an answer is something we ought to consider. I. If there's money going to be out there in this -- already been appropriated so far that -- so to speak. -- for the banks in the banks aren't lending if we can get some money into the hands of a lot of small medium sized businesses. That's where -- job creation comes from an America."

" Okay thank you very much for being with -- here and we appreciate your thoughts on the stimulus will have to wait and see some economists are saying that. In essence the economy will turn around by the end of this year but we'll have to see if that is -- case but thanks for being that he had eaten -- Okay -- got the Pennsylvania governor Ed Rendell a Democrat is open to the idea of a second stimulus he joins. From Philadelphia governor thanks for being with us. -- So tell me why you've just heard the senator Shelby he's obviously opposed to a second stimulus why do you think we need one. Well first of -- I'm not the point where I think."

" We need a second stimulus understand. Senators -- makes a point. We haven't seen the crux of that this first stimulus put into action yet. And when we do will be able to judge how successful it is at that point we can make a decision on whether we have a second stimulus the president is exactly right. He's not for a second stimulus yet. But he's not taking it off the table and given the mercurial nature of the economy. That's the right position to take let's see how it works it's starting to work fairly well in Pennsylvania and I think we're gonna see. An explosion of new jobs created in July August September October November. We've already stopped the loss of jobs that was appointed Tim Geithner made."

" Have we not gotten the state of Pennsylvania is government has not gotten the stimulus money that we got. Help us on Medicaid and help -- collections. We would probably about to lay off five to 10000 state county and municipal workers."

" And in fairness to President Obama the Congressional Budget Office did say that. About a quarter of the stimulus money was expected to be paid out by the end of this year they weren't expecting all but to come. In at the beginning of this year it was going to be over two years. Is that the right way for it to come out slowly I -- we make a big point about this 10% being spent. Well it's not really."

" So as you take for example in Pennsylvania we have our transportation plan approved by the federal government on March 12 pretty soon after the stimulus aside. It's now four months later and we have over 50% of our projects we have 242 projects from the stimulus money. 131 of them work has begun and hiring on those projects has started it will ramp up dramatically. The other half -- projects. Were almost all be under way by Labor -- so it's gonna be much faster in the infrastructure side. Then two years we're gonna see the impact of that. In the first six to nine months and if we do have another stimulus Jennifer and I love to change senator -- is not online. But I think everyone agrees Republican and Democrats. That the best stimulus is infrastructure building bridges roads highways things that we actually need wastewater systems. And they know everyone knows those producers produce jobs. And they produce orders for Pennsylvania and American factory steel factories asphalt concrete lumber. So if we haven't had a second stimulus. No. Programs that are social programs are long range programs but still a tight stimulus 20253. -- million dollars. Where -- the American infrastructure that will produce jobs orders for US factories. Well I guess what I don't understand is why weren't those infrastructure projects in the first stimulus package you've got 787. Billion dollars what percentage of that. We're supposed to be infrastructure projects. About a underneath. Billion dollars for infrastructure projects. Some of them long range infrastructure like building that -- the electricity grid which is vitally important but isn't gonna happen quickly. I think the reason is. Did 375. Billion of it was tax cuts. And I think the Obama administration -- tax cuts and in part. To try to get Republican votes which as we know they virtually didn't get any. So I think that tax cuts and dominated almost half of the stimulus and that reduced infrastructure spending but I think we've learned a lesson. So there's a second stimulus let's put it all and a hard infrastructure construction. Factory is everybody going back to work construction. The manufacturing. Jobs produced -- hard infrastructure stimulus."

" In the White House has been somewhat coy as to whether there really considering a second stimulus but you. This and that talk began in fact earlier this week when Laura Tyson his economic adviser to the president. Without in the Singapore do you think the White House was floating that idea through her as she spoke in Singapore."

" It's hard for me to say but but I think the president's position is down. It's too early to tell and even as someone like me agrees with that it's much too early to tell whether we need one. But we can't rule it out I mean we've got to see where the economy is in September -- right. Every economist I've read in and our own consultants in Pennsylvania tell us that in the last quarter of -- mind we're gonna see growth return. Not explosive growth but growth return so we have to see where everything is before you make that judgment."

" Okay governor thanks for being with us."