White House Rejects Notion of Adding to Stimulus
WASHINGTON -- With the ink still wet on a $152 billion government economic-rescue plan, the White House rejected hints from Democrats that more emergency measures may be needed to keep the economy from entering a recession.</br></br>President Bush is expected to sign the initial stimulus plan as early as tomorrow. The combination of tax rebates for individuals and investment incentives for businesses cleared both houses of Congress last week. It would also extend the reach of the Federal Housing Administration's home-loan program.</br></br>"We think that's an effective stimulus," Edward Lazear, chairman of the White House Council of Economic Advisers, said yesterday of the initial plan. "We think it will have the desired effect. We still think that policy is appropriate, and we'd stick with that."</br></br>Democratic lawmakers have suggested that they might push for further steps to accelerate economic growth and cushion the blow of a slowdown. Efforts could include an extension of unemployment benefits, an expansion of food stamps and an increase in federal spending on roads, bridges and other infrastructure.</br></br>"Economists believe that this legislation will make a real difference in mitigating our current downturn," Senate Majority Leader Harry Reid (D., Nevada) said of the initial plan. "However, it is far from a panacea, and much more should be done to address our economy's longer-term problems."