James Pethokoukis: Will Obama go for a second stimulus?

Reuters:

OK, so Laura Tyson thinks a second stimulus might be a good idea. Will the White House go for it The economic logic of such a package might seem compelling. The original $787 billion spending measure was deemed appropriate by the White House for an economy where the unemployment rate was predicted to approach 9 percent in early 2010 if no new fiscal actions were taken.

Of course, the U.S. jobless rate is already at 9.5 percent and President Obama himself predicts a 10 percent rate by year end. Admitting the obvious, Vice President Joe Biden told ABC News that the administration “misread how bad the economy was.”

No shame there, really. Most of Wall Street and the Federal Reserve also underestimated the depth of the recession. But if the disease is worse than first thought, then shouldn’t the treatment be more aggressive?

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