Schumer advocates $700 billion plan

Sen. Charles Schumer (D-N.Y.) on Sunday said an economic
recovery plan would have to cost $500 to $700 billion in order to be effective.

Noting that the economy is in “serious, serious trouble,”
Schumer said on ABC’s “This Week with George Stephanopoulos” that a recovery plan
would need to be “pretty big.”

{mosads}“We’re on the edge of deflation. Once you get into
deflation, you almost never get out. That’s what the Great Depression taught us.
That’s what Japan taught us,” Schumer said. “So a strong shot in the arm, just
the way Barack Obama has conceived it, infrastructure, green jobs, is what is
needed.”

The senator also expressed confidence that Congress would
be able to pass such a plan before President-elect Obama takes office to have
it “on his desk by Inauguration Day.”

Schumer said his vision of the economic stimulus is “a
little like having a new New Deal, but you do it before a depression occurs,
not after.”

Sen. Richard Shelby (Ala.), the ranking Republican on the
Banking Committee, did not immediately reject such a plan.

“Well, I would like to see the details of any stimulus
package: what it would do, how it would work, who would benefit from it,” said
Shelby, who also appeared on the program. “What we need is to really get the economy
going. I think it’s fair to say that we Republicans will look at the details
and see if we can support it. I want to support things that are meaningful for
the economy, and I believe Senator Schumer does, too.”

Shelby indicated that he could support such a massive
plan “if it would accelerate appreciation, things like that; tax incentives for
people to hire, to retool and things like that,” as well as invest in education
and infrastructure.