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December 1, 2008
When Barack Obama's economic advisers "wake up every morning," one of those advisers told me recently, all they think about is "stabilzing the financial system and getting the economy moving." You wonder what Obama's priorities are? Those are the priorities. And that is why I would guess that the "stimulus" package Obama will propose will end up matching the Paulson Plan -- something in the $700 billion range. Now this NY Times story seems to suggest that Obama would need to create $1 trillion in additional demand both next year and the year after to create the 2.5 million jobs he promised over the next two years. That would mean a $700 billion stim package both this year and next for a total of $1.4 trillion, or pretty much the same amount as we have devoted to the banking system rescue.