(email to J. Galbraith – one of Obama’s economic advisers)
The ‘bailout’ adds nothing to aggregate demand and should not be a factor regarding other spending initiatives.
Any chance you can straighten him out on this?
by Steve Holland
NEW YORK, Sept 23 (Reuters) – Democratic presidential nominee Barack Obama said on Tuesday a $700 billion Wall Street rescue plan would likely delay some campaign spending promises, as the reality sank in of the costs of the mammoth bailout.
Obama, who faces Republican John McCain in their first face-to-face debate on Friday in Mississippi, said if elected he might have to phase in some of his plans such as an overhaul of the U.S. health care system.