In an effort to explain Barack Obama’s call for a $500 billion stimulus package on Monday’s CBS Evening News, fill-in anchor Harry Smith patronized viewers as he turned to Fast Draw artists Josh Landis and Mitch Butler, who created an animated cartoon on the subject, promoting Obama’s public works program. Butler explained: "When the economy slows down, people look for a pick-me-up." Landis added: "And a stimulus check from government is like money falling from the sky." Butler then asked: "But what's better? Giving money away-" Landis interjected: "-or using it to build bridges, highways, schools, things like that."
Butler and Landis used economist Peter Morici to further explain: "The construction workers get salaries. The steel workers and concrete makers get salaries. They spend that money on goods and services and the money -- and that creates additional jobs, and the money keeps cycling through the economy." Butler added: "And when they're finished working, there's a new bridge that businesses can use to ship more products." Later, Landis observed: "And even though the government has to carry more debt to get the project done-" Morici explained: "It employs more people immediately, boosts GNP by a larger amount and leaves the legacy of investments in our economy, which will improve productivity into the future." Landis concluded: "...spending the money on bridges, schools and other projects gives us a better shot of prosperity down the road."
Here is the full transcript of the segment:
6:46PM TEASE:
HARRY SMITH: Coming up next, the Fast Draw guys on how to get the biggest bang for your bailout bucks.
6:52PM SEGMENT:
HARRY SMITH: As we reported earlier, President-elect Obama wants the incoming Congress to pass a new economic stimulus package as soon as possible. The price tag could total hundreds of billions of dollars, but how should all that money be spent to do the economy the most good? Here's our Fast Draw team Josh Landis and Mitch Butler.
MITCH BUTLER: When the economy slows down, people look for a pick-me-up.
JOSH LANDIS: And a stimulus check from government is like money falling from the sky.
BUTLER: But what's better? Giving money away-
LANDIS: -or using it to build bridges, highways, schools, things like that.
BUTLER: Here's $100. If you give it directly to a consumer, he'll save a little and spend the rest.
LANDIS: But economics professor Peter Morici says the benefit of that strategy is short lived.
PETER MORICI: They spend it on restaurant meals, on imports, things of that nature, and we have nothing to show for it down the road.
BUTLER: So sure, if I put my money towards a new TV, it will help pay employees, utilities, suppliers and so on.
LANDIS: Morici says as this $100 circulates, within two years it will boost the economy by $125. But if you take the same hundred dollars and use it to build bridges and schools-
MORICI: The construction workers get salaries. The steel workers and concrete makers get salaries. They spend that money on goods and services and the money -- and that creates additional jobs, and the money keeps cycling through the economy.
BUTLER: And when they're finished working, there's a new bridge that businesses can use to ship more products.
LANDIS: That workers can use to commute to work.
BUTLER: And this long-term benefit, Morici says, means that the original $100 will boost the economy by $350 in the decade after the bridge is completed.
LANDIS: And even though the government has to carry more debt to get the project done-
MORICI: It employs more people immediately, boosts GNP by a larger amount and leaves the legacy of investments in our economy, which will improve productivity into the future.
BUTLER: So while a stimulus check gives us a nice short-term gain-
LANDIS: -spending the money on bridges, schools and other projects gives us a better shot of prosperity down the road.
—Kyle Drennen is a news analyst at the Media Research Center.





HARRY SMITH: As we reported earlier, President-elect Obama wants the incoming Congress to pass a new economic stimulus package as soon as possible. The price tag could total hundreds of billions of dollars, but how should all that money be spent to do the economy the most good? Here's our Fast Draw team Josh Landis and Mitch Butler. 














Editor at Large
Comments Policy
Obamunism
November 25, 2008 - 14:36 ET by 10ksnookerDoesn't fail, it just runs out of other people's money to give away.
Maybe we should have a cartoon ... Gubbermint make work projects always end at the same place, the unemployment line. Ask FDR for details.
Oh just friggin'
November 25, 2008 - 14:40 ET by bigtimerOh just friggin' priceless.
I am so sick of all of this, tired of commenting about it too...I'll just read others for now, I have posted enough about the subject for days...I am just sick of the BS...all of it.
"America isn't the problem...America is the solution." ~ Rush Limbaugh
Landis is missing the big
November 25, 2008 - 14:42 ET by ForeverOnTheRightLandis is missing the big picture. Yes, we need to do things now that will build the future, but people can't wait for X number of years or months to see the prosperity. Their is a need for short term and long term fixes. Like the drill now idea, we may not see the benefits imediately but we will see it down the road with some imediate benefits now.
Newspeak has been superceded by Neweconomics
November 25, 2008 - 14:45 ET by c5thenThey are speaking here as if they were "dumb blonds" asked how they can afford the shopping spree they just went on. "Oh, don't worry", they reply, "the credit card pays for it all. It's free money. Tee hee".
Appologies to all you blonds out there. The stereotype should be changed to CBS employees.
Their plan is called communism and the Soviet Union proved that it is unsustainable and eventually collapses.
Hey, I got the wrong "CHANGE"!
Alan Keyes / Sarah Palin - 2012
Well, it could be
November 25, 2008 - 14:48 ET by 10ksnookerThat THE ONE thinks we are all dumb Kenyans. Just saying, maybe he is confused which country he is in. Kenyans would likely be applauding that they finally will have a road or bridge.
ugh!
November 25, 2008 - 14:47 ET by katainkentits even better when you watch it!
or we could watch this...
member of the Conservative Independant Witness Protection Program since Nov. 5, 2008
Oswald is better. It's
November 25, 2008 - 15:46 ET by motherbeltOswald is better. It's just a cartoon with a point. It's not an ongoing illustration while someone tells a story ("and look...this hen couldn't lay an egg....)
The stimulus cartoon is moronic, as if people wouldn't understand what "free money" means without a picture of a $100 bill falling from the sky. Or wouldn't know what "building bridges" means without a picture of a bridge!
Well this shows us how intelligent Smith and his bosses at CBS think we are!
OMG....
November 25, 2008 - 15:51 ET by superconThat was the most insulting thing I have ever seen in my life.I'm surprised that they didn't have some commentary from a puppet.
Maybe next CBS can do a week long series on how to cross the street by yourself.
The joys of increased government spending
November 25, 2008 - 14:53 ET by nkviking75"The construction workers get salaries. The steel workers and concrete makers get salaries. They spend that money on goods and services and the money -- and that creates additional jobs, and the money keeps cycling through the economy." Butler added: "And when they're finished working, there's a new bridge that businesses can use to ship more products." Later, Landis observed: "And even though the government has to carry more debt to get the project done-" Morici explained: "It employs more people immediately, boosts GNP by a larger amount and leaves the legacy of investments in our economy, which will improve productivity into the future." Landis concluded: "...spending the money on bridges, schools and other projects gives us a better shot of prosperity down the road."
Meanwhile, the added tax burden eliminates minimum wage jobs and cuts the hours of other minimum wage workers, forces some small businesses to close or cut back, and limits the buying power of consumers. Those consumers spend less, hurting business income, causing jobs to be lost, factories to close, and companies to outsource production to cheaper labor from abroad. More money spent on schools is mostly spent on teachers' salaries. The teachers unions protect the incompetent, pressure districts into hiring more teachers than really needed, and drain school district funds away from infrastructure. Meanwhile, illegal aliens stream across the border to work for employers who are only to happy to avoid paying ever-increasing minimum wages and payroll taxes.
Yep, increasing government spending will solve everything.
Welcome to the era of unity, you racist!
The Most Holy, Most High Confidence Man
November 25, 2008 - 15:07 ET by Copperhead RidgeThese libs are in for a rude awakening when they discover how government regulations and permitting processes delay the start of their public works projects. The Lord Most High Barack Obama could suspend those regs, but he would alienate of his many consitituencies if he did it.
I used to be in that business. It's danged difficult to get a road built using federal funds. I helped research and write environmental impact statements and Memoranda of Agreements (MOA's) on these projects. There's a highway project near my house -- widening an existing federal highway while just acquiring strips of additional right-of-way. I worked on the project in 2000, and they just started construction this fall.
There's other projects on which I worked that are still not off the ground. One such project has cost the government hundreds of millions of dollars, and they are still studying the preliminaries. It's my state's version of "The Big Dig."
The only people who will benefit from this are consultants and attorneys. Obama's plans are either naive or a sham. I can't decide if Obama is a fool, a flake, or the best confidence man in the history of the world.
I know one thing. I'm going to get back in the consulting business if Barry starts pushing the money out there without suspending the regulations. Construction workers will be defecating in their helmets waiting to build this stuff, and I'll be on the way to the bank. Wait! I'll sew that stuff in my mattress.
SUCKERS!!
Oh yeah...if you're so smart...
November 25, 2008 - 15:55 ET by superconhow come the cartoon bridges and roads got built so fast.....?
They didn't seem to have all those problems.
$500 billion stimulus
November 25, 2008 - 15:24 ET by dscott$500 billion stimulus package being proposed is just trickle down economics, notice who get's the primary benefit of the money? The unions. In other words Quid Pro Quo for their financial support in getting Obama elected, how provincal of you... Just like the Quid Pro Quo to the environmental lobby, you now will mandate so called "green initiatives" as payback for their financial support of your election. Bailouts for the auto companies which is a Quid Pro Quo financial payback for the millions of campaign dollars contributed from the management and unions. What a bunch of CROOKS! The same old Chicago politics, and why should we be surprised? Tony Rezko and your buddies at TUC (gazebo for a park) all financially benefited after supporting Obama for election on the State level.
Hey morons instead of confiscating (tax) or borrowing $500 billion which siphons money away from the private sector which would have created jobs (net positive taxpayers) if you didn't take the money, why not cut taxes by that amount to increase the amount of investment available? Oh that's right, you would have to cut $500 billion of government spending and that would slash your vote buying scams giving you credit for doing something even if it is destructive or debilatating. There is nothing like the self serving interest of a politician that insists upon credit for name recognition sake and screams and obstructs if something is done that doesn't get them any.
There is an alternative, unleash the oil and gas companies for domestic drilling, there is NO COST to the Treasury, in fact, it would RAISE revenue via taxes and royalties, it would spur manufacturing, create jobs (net positive taxpayers) AND it would improve the balance of trade keeping more money here for continued investment in the economy. Of course all this makes way too much sense and libs can't stand the thought that the evil oil companies are more important to our economy than government boondoggles.
Nancy Pelosi and Harry Reid, starving the poor one gallon of ethanol at a time. Fill your tank with E85 and cull a village.
Vomit bags needed
November 25, 2008 - 15:43 ET by UtherpendSomeone please shut Harry Smith up. He is the worse commentator I have ever seen. He is neither impartial or fair minded in ANY of the stories I hear him preaching about. He reminds me of Hannibel Lecture talking to his victims before he kills and eats them.
"If you love wealth more than liberty, the tranquillity of servitude better than the animating contest of freedom, depart from us in peace. We ask not your counsel nor your arms. Crouch down and lick the hand that feeds you"
Cartoon?
November 25, 2008 - 15:49 ET by wnaegeleThe perfect medium to reach the Obama voter..
CBS Cartoons of economic stimulus plan
November 25, 2008 - 16:06 ET by east tennessee johnThey forgot to show how the money is removed from the private sector for the first, of many, "four year plans." Here's a guy who never in his life read anything about market economics that wasn't a critique. Is there a sports book on the inflation rate/unempolyment rate in 2010? I'll say 9/9, for openers. It was a great 233 year run. RIP America.
Gov't vs Private Sector
November 25, 2008 - 16:16 ET by BluegillWhich makes more sense ONE gov't creating construction jobs with tax payer money or thousands of businesses across all sectors being stimulated with tax cuts to offer jobs of ALL types.
Mind boggling stupidity or smart socialist, more likely a smart socialist.
Everyone says this crisis is helping bring about change, I say with media types like Harry who needs a crisis.
Stimulus
November 25, 2008 - 16:17 ET by billbBefore we send people out to make solar collectors and build windmills, we should send them out to rebuild our depleted military hardware. If we get attacked AGAIN, blaming Bush for a used up military is not going to cut it! Don't forget, he worked with a military that Clinton allowed to rot on the vine and kept us safe for 7 years.
Could the news get any more retarded?
November 25, 2008 - 16:35 ET by jackie3I'm not sure just whom the targeted audience is with the cartoon. Maybe the 18 year old newly registered dems? Maybe lower?
Anyways, without a doubt some of the infrastructure needs updating. Old bridges, the electrical grid, ect. But this doesn't require a massive campaign to do it. We are not laying new highways out west. Or taming rivers with damns. The projects that need work are already in use. So, essentially Obama is sensationalizing what government plans to do all along. This is not anything new. This is not even news.
This is nothing! Not news, not even economics 101.
Free money? No such thing! We pay it all back with interests.
There IS NO short term solution. Not even opening up oil will immediately make a difference. For the oil still needs to be located and drilled. Expenses before gains.
Our best solution would be to tariff the regulate the incoming products from China and Mexico. To find some way of regaining our manufacturing industry. Manufacturing is the life blood of any developed nation. Close the free trade agreements for they only benefit China, Mexico, ect.
If the government really wanted to help they wouldn't have made it so easy to send our jobs away. The government also would have given more tax breaks to manufacturers. Promoted reasons to keep jobs in the country.
Manufacturing is key. Our changing economy needs to regain that industry. We cannot go to a service oriented dominated industry for there is no money going into american manufacturing and supply. Paying some bloke minimum wage at Wal-mart doesn't replace the buying power of a 10.00 an hour factory worker. The factory also needs raw material to make the products. We have the raw material right here in the usa. That would churn our economic engines once more.
Never under estimate the power of stupid people in large groups.
For the oil still needs to
November 25, 2008 - 16:56 ET by dscottFor the oil still needs to be located and drilled. Expenses before gains.
Ahem, the oil company's expense is their supplier's gain and the paycheck for every worker who fills the supply orders. It takes millions of dollars for every well to be drilled. All money that is NOT spent overseas. There are literally thousands of older capped wells that could start producing using horizontal drilling and other enhancing technology save but for ONE obstruction...the incompetent bureaucrats in government, directed by their overlords, the politicians. The whole 10 year mantra to produce oil by the Dems is a bold faced LIE. Start building the extra pipelines to join the original pipeline in Alaska, spending, construction, manufacturing, jobs, all waiting to be done.
Nancy Pelosi and Harry Reid, starving the poor one gallon of ethanol at a time. Fill your tank with E85 and cull a village.
jackie3, Less regulation is the key.Not more
November 25, 2008 - 17:39 ET by upcountrywaterThe Alaska Pipeline was started almost 40 years ago, then it took more than 2,000 permits and notices to proceed , just to get started...
The pre-construction time was 6 years.
Actual construction was 3 years.
At the time the largest privately funded project in the world.
Automation makes us competive in the world market place. Machines replacing humans at every possible step.
DEMOCRAT
Aclu</
thanks UCW
November 25, 2008 - 18:27 ET by MichiganVetExcellent link/article that points out the real racists in this country!
I carry a gun because a cop is too heavy
MV yes calling anyone a democrat is the foulest word i know..
November 25, 2008 - 18:56 ET by upcountrywaterDEMOCRAT
Aclu</
or even worse than "democrat"
November 25, 2008 - 19:02 ET by porpoiseboyis LIBERAL. even they hate and are always looking for words ( progressive ) to replace it because they hate it soooo much.
"Here comes the orator! With his flood of words, and his drop of reason" Ben Franklin
Ecclesiastes 10:2 The heart of the wise inclines to the right, but the heart of the fool to the left
when it was Bush it was ridicule, attack from commentators
November 25, 2008 - 16:49 ET by UndercoverConservativeBut from the Big O, Media goes out of it's way to sell every little plan he's set forth, or helps sweep it down the Memory Hole if they can't sell it. No one in the Media made multimedia presentations to help explain *anything* Bush wanted to pass, for good or ill.
Whatever happened to the whole "we're Media, it's our job to be Watchdogs and criticise *everything* the government does!"? now it's "accept and sell" instead.
Bias? No? Reeeaaally....
"to call an illegal immigrant an "undocumented alien" is the same as calling a streetcorner drug dealer an "unlicensed pharmacist".
"You spend your money anyway you want and respect other's rights to do the same"
UC... Especially when he
November 25, 2008 - 17:04 ET by bigtimerUC...
Especially when he would talk about drilling in ANWR and elsewhere to help be oil independent here within, oh no...they just either criticized it or ignored it as fast as possible if he had a presser about this subject, plus it would have created a projected 2 million jobs all in all.
We can't have that...heck no, especially during a time of war in the middle east ect ect ect...
"America isn't the problem...America is the solution." ~ Rush Limbaugh
Gratuitous, but...
November 25, 2008 - 18:47 ET by SickofLibs... jeez, do I despise Harriet Smith.
He's Chris Matthews, but without any core beliefs.
Where did this economist earn his degree?
November 25, 2008 - 22:44 ET by mizflame98I have a couple of Looney Tunes cartoons that contradicts Peter Morici, Butler, Landis, and Obama!
http://video.aol.com/video/by-word-of-mouse/1878831
http://video.aol.com/video/heir-conditioned/1899876
Perfect Demotivator for the Obama Administration
http://www.despair.com/government.html
I'm sure all of those
November 27, 2008 - 00:16 ET by RR GOPI'm sure all of those people out of work who used to work in banks, on Wall Street, and those who used to have manufacturing jobs will just love to get out there and help build some new bridges.
Hey, maybe those retirees who are looking for some extra income can get out there and operate some heavy equipment.
One of the 24% who thinks George W. Bush was a great President. One of the 89% who wants to bring back the stock and pillory.