Stimulus Package Is 'Act Of Caution', Vanderhoogen Says

Deputy Secretary of the Treasury says stimulus package could still have positive impact

MAVOCKE, CEA--Deputy Secretary of the Treasury Jan Vanderhoogen testified before the National Assembly Finance Committee Friday, telling members of the committee that a smaller, slimmed-down stimulus package could still benefit the economy, and would be "an act of caution."

Testifying for more than two hours Friday morning, Mr. Vanderhoogen said passing a smaller, less-expensive stimulus package like Collester desires would be "the prudent thing to do."

"Could we get by without passing a stimulus package? Yes, we probably could. But it's going to be much more painful if we don't pass a stimulus bill," Vanderhoogen told the 12-member committee.

As expected, Conservative members of the committee grilled Mr. Vanderhoogen on the administration's proposed stimulus package. Congressman Dennis Brock of Wilkonshire, specifically questioned the necessity of a stimulus package.

"At this late in the game, I don't see why we need a stimulus package. The economy is starting to come back. The tide is turning. Why do we need one now?" he asked.

But NAT members defended the stimulus package and Vanderhoogen's argument.

"We do not want to prolong this economic misery that many of our fellow citizens are feeling," Rep. Molly Maxis, of Trinton, said.

Monomi Congressman Silvio Romero, a Democratic-Reformist, accused both parties of playing politics.

"On the one side you have the NAT trying to win votes by passing a stimulus package that would give basically free money to every Grassadellan. On the other side, you have the CNS, which is trying to scare people by calling this act 'socialist' or unnecessary. Can't we just have a rational discussion about this issue?" Romero asked.

Mr. Vanderhoogen responded by insisting the stimulus package is not an attempt to win or buy votes.

"By no means are we pushing this because we think it will be popular with the public and they'll all vote for the NAT in 2010 [election]. This has nothing to do with politics, sir," Vanderhoogen said.

Mr. Vanderhoogen's testimony ended for the day at 2:00 pm Eastern time. Next week, the committee will resume its schedule and will hear from Secretary of Revenue John Rogers-Thurst.