Add another voice to those calling for a second stimulus.  According to Bloomberg, Obama adviser Laura Tyson is claiming that the $787 Billion stimulus package was “a bit too small,” and goes on to argue that we can afford another such package.

So, if it didn’t work once, let’s try it again.  Even though she acknowledges that the deficit is “likely to be worse” than 12% of the 2009 GDP, Tyson believes a second stimulus package is affordable.

She also brushes off fears voiced by China over the notion that the United States will rid itself of debt through massive inflation.  “The concern is that the U.S. will have to inflate away its debt. I do not think that is a valid concern.” 

Oh.  Ok.  Well, that ought to put China’s mind at ease, then.

When the first stimulus was passed, National Economic Council director Larry Summers claimed it would work “almost immediately.”  Joe Biden claims it’s already working.

Tyson’s estimation isn’t so rosy.  “The economy is worse than the forecast on which the stimulus program was based,” Tyson says, “We probably have already 2.5 million more job losses than anticipated.”

After such massive miscalculations in the first stimulus, after seeing the wasteful ways in which much of the money is being spent, are we really stupid enough to let these people do it all again?

-Robert Laurie

Right now the city of Los Angeles is dealing with a 530 million dollar budget deficit.  The state is so deep in debt that it’s issuing IOUs to pay its bills.  Unfortunately, today’s Michael Jackson memorial spectacular is set to heap even more financial trouble on the struggling economy.

According to MSNBC, a source within the LAPD claims that, while the total cost of Jackson’s funeral is still unknown, 2.5 million is the “best estimate” for now.   The figure covers sanitation; technical support for IT needs, and police protection.

The Staples Center memorial itself is being paid for by Staples and AEG.

You can ignore Jackson’s crazy life, the molestation charges, the massive drug abuse, and all the other things that make him unworthy of such accolades, but a simple truth still remains. At a time when the city and state are on the brink of total financial collapse, shelling out two and a half million taxpayer dollars in support of ANY celebrity’s funeral is ridiculous.

Last week, Lou Ferrigno, Jackson’s friend and personal trainer, suggested that massive debt was the real cause of the pop star’s death.  He said “He was under tremendous stress, so much I think it killed him,” adding “In the past, he had backed out of doing live shows but this time he was under the gun. The debts put a huge strain on him.”

Perhaps the debtor state of California could learn something from that.

-Robert Laurie