From press release:
An aggressive stimulus package is needed immediately to address the current weakness of the US economy, according to the latest report from the Center for Economic and Policy Research and the Center for Women and Work at Rutgers University.
The Need For An Economic Stimulus Package, by economists Eileen Appelbaum, Dean Baker and John Schmitt, stresses the necessity for an immediate stimulus package equal to 1% of GDP to counteract the negative effects of the collapse of the housing bubble.
Several economic indicators point to a softening of the US economy. From the recent 0.3 percentage point rise in unemployment (a jump rarely seen outside of a recession), to a decline in consumption, the US economy is clearly in a down turn, if not entering a recession, spurred by the collapse of the housing market and the loss of trillions of dollars of wealth.