Obama’s Stimulus Package
I am pleased that the Obama’s stimulus package has finally been passed. And while I understand the resistance to spending upwards of one trillion dollars to bailout America, I’m not sure how the dissenting politicians expected to combat the current recession without spending money.
In business, money has to spent in order to make money. So of course the price tag on Obama’s stimulus package would be high, but hopefully, the US will make a return on their investment via job growth, increased consumer spending, and a better infrastructure.
The republicans call to only cut taxes doesn’t make sense because most people are saving their extra money or using it on cost-of-living expenses not consumer goods. Also, does anyone else remember how well that approach worked for Bush? Exactly.
Unlike Republicans, Obama is, as expected, thrilled by he passage of the bill, “This is a major milestone on our road to recovery, and I want to thank the members of Congress who came together in common purpose to make it happen.”
According to President Obama, the bill “will save or create more than 3.5 million jobs over the next two years, ignite spending by business and consumers alike, and lay a new foundation for our lasting economic growth and prosperity.” This of course would be a huge accomplishment as job losses are at record highs.
But how are the billions being spent? Here are some highlights:
-120 billion for infrastructure (includes highways)
-20 billion for renewable energy
-11 billion to modernize the US electrical grid
-Tax cuts/tens of billions of dollars for extending unemployment benefits, healthcare
-Funds to help struggling states avoid cuts in services like education
Now we will have to wait and see how this money is spent and the effect it has on the economy. Fortunately, there will be transparency during this process via Recovery.org.
If all else fails, perhaps Ty Inc. can re-release the Sasha and Malia beanie babies.
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I’ve been blogging quite a bit about the stimulus of late myself: http://mattwion.blogspot.com/
I too am in favor of it. And I can’t understand how anyone, at this point, could oppose stimulus plans.
The only worry I have is that this stimulus is far to small. It should at least be double, and far more needs to be done about education and health care.
In particular. I think that we ought to finally move toward a National health plan, perhaps even single payer health care.
But nonetheless, that the stimulus passed is a good first step. I just hope there are more and larger steps to follow!