Obama adviser: stimulus 'a bit too small,' ready the second one

Obama adviser Laura Tyson suggests that the current $787 billion stimulus package is 'a bit too small' and that more is needed to fund infrastructure projects.

Saying that the $787 billion stimulus package passed in February was "a bit too small," Laura Tyson, an adviser to the Obama administration suggested that more should be spent to cover the needs of the nation's infrastructure. Tyson is a member of Obama's Economic Recovery Advisory board. "The current plan 'will have a positive effect, but the real economy is a sicker patient,' Tyson said in a speech in Singapore on Tuesday, according to Bloomberg. Tyson would like to see a larger package for the second half of the year, as unemployment continues to climb nationally toward double digits. Saying that she was speaking for herself, her comments contrasted with those of U.S. Vice President Joe Biden who said just two days ago that it was premature to consider a second stimulus request. Biden also admitted that the administration had not fully projected the impact of the downturn on the nation's employment figures. U.S. unemployment hit 9.5 percent in June and America has lost 6.5 million jobs since December 2007. “The economy is worse than we forecast on which the stimulus program was based,” Tyson said. “We probably have already 2.5 million more job losses than anticipated.” The United States is facing a crushing debt scenario, with record-level deficits and an administration that is willing to increase spending in the face of those deficits. “The concern is that the U.S. will have to inflate away its debt. I do not think that is a valid concern,” Tyson said. “The Federal Reserve is not going to let the U.S. government inflate away its debt.”