So did Joe Biden just pull another “Biden” with his line this morning about “misreading” how bad the economy was?
Some folks in the White House may chalk it up to “Joe being Joe,” but make no mistake, the administration is laying the groundwork for the second stimulus.
We predicted on Thursday, after the weak jobs report, that the second stimulus was no definitely on its way. The very next day, Paul Krugman, a reliable thermometer for establishment thinking, chimed in and said we must do a second, bigger stimulus.
So when you have Joe Biden saying “we misread how bad the economy was” — despite the fact that we stave off an outright collapse — what else could he possibly be talking, other than: ‘it’s time to do a second stimulus’?
So how will this be sold politically? Here’s a guess. The administration and Congress will argue (correctly) that the first stimulus wasn’t actually a stimulus, but was mainly an expansion of various benefits and transfer payments. Stuff like that. This time, they’ll say, those gargantuan stimulus projects will be the priority, and they’ll say that the original stimulus demonstrated an enormous demand for cash to fund infrastructure projects, all around the country.
The question then, is timing. Our guess is October.
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