Laura Tyson: Second Stimulus May Be Needed

Bloomberg is reporting that Obama administration economic advisor Laura Tyson said in a speech in Singapore that a second stimulus package may be needed. (More on this by Edward Harrison of Credit Writedowns; see the Bloomberg story below.) Given that the original stimulus package assumed that the unemployment rate wouldn't get above 8% (it's now 9.5%, and will surely be in the double digits soon, and for a while), it seems like an understatement when Tyson says that the original stimulus is "a bit too small."

Meanwhile, today's New York Times reports that France's stimulus focused on "shovel-ready" projects, many of which are well underway already. The article has pictures of work being done on the Grand Commune at Versailles. "As it turns out, France's more centralized, state-directed economy—so often criticized in good times for smothering entrepreneurship and holding back growth—is proving remarkably effective at deploying funds quickly and efficiently in bad times."

Here's that Bloomberg article:

Obama Adviser Says U.S. Should Mull Second Stimulus

Read the original article.