Pelosi pushes for economic recovery package

Speaker of the House Nancy Pelosi (D-Calif.) touched upon the plan for an economic recovery package and explained how it will be different from Roosevelt’s New Deal.

“This is not a 1930s public works project: this is a broad band modernization of the grid initiative for the future. The only thing it has in common with the thirties is the bold and persistent experimentation of that era, the entrepreneurial spirit,” said Pelosi during her final press conference for the 110th Congress.

While the Speaker did not say for certain the cost of the package, she did allude to a recent meeting between the Democratic Caucus and a series of economists, including McCain economic advisor Mark Zandi, who all agreed that the intensifying economic crisis called for a robust stimulus package.

“Mark talked about 600 billion dollars … 400 billion for investments in infrastructure [and aid to the States] and 200 billion in tax cuts.”

Pelosi said that Democratic leadership in Congress has been communicating with the President elect, and is confident that they will arrive upon a consensus.

The Speaker also discussed the auto bailout and reaffirmed her view that Troubled Assets Relief Program (TARP) funds should be used to help the big 3 auto manufacturers. While the White House has been reluctant to use these funds, Pelosi believes the administration will not allow the companies to go bankrupt following Congress’ failure to pass legislation supporting the big 3.

As for the rest of TARP funds, Pelosi said that she has been working with Rep. Barney Frank (D-Mass.) to create legislation that would only give the Treasury Department the second half of TARP funds when the provisions of the initial legislation, namely the requirement to provide aid to those suffering from the housing crisis, are met.

“It was very clearly spelled out in the initial legislation that funds would be used for mortgage foreclosure forbearance. As you recall, there were no votes to pass this legislation … and it was only until we intensified the provisions that related to keeping people in their homes that this legislation even passed the House of Representatives,” said Pelosi.

“It has been totally ignored by the administration. Absolutely nothing has been done to respect that part of the legislation, which is the only part of the legislation that had support in the Congress and enabled it to pass.”