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Democratic members of the House yesterday offered their version of an economic stimulus package, which differed significantly from Barack Obama’s. The President-elect, in capitulating to Republican demands, devoted a large portion of his plan to tax breaks and came under fire from members of his own party. The version that House Democrats are pushing calls for $550 billion in spending and aid to states and only $275 billion in tax cuts. The plan includes a number of measures specifically aimed at helping low-income, unemployed, and elderly Americans through increased subsidies, checks, and extension of benefits. The cost of the bill is even larger than Obama’s proposal, at $825 billion. Despite an outcry from Republicans that they were not consulted, the bill now goes to various House Committees for review and possible changes and will later be sent to the Senate to resolve any differences. House speaker Nancy Pelosi hopes to have a bill passed by both houses ready for President Obama to sign on February 13th.

GUESTS: David Rosnick, economist with the Center for Economic and Policy Research, Joel Magnuson, author of Mindful Economics: How the US Economy Works, Why it Matters, and How it Could be Different

For more information visit www.cepr.net, and www.mindfuleconomics.com.