Did this new team in the White House hit the ground running or what? In only eight days they have closed gittmo, reversed the stand on the international family planning gag order, asked the EPA to look into state fuel efficiency standards, strengthened the Clean Air Act and passed a new stimulus package through the House by a vote of 244 vs 188. This has been an exhilarating week. What a breathtaking performance it has been.
That plurality was along party lines but I expect that when the final bill is ready to be sent to the President for his signature in two weeks that more than a few Republican House members would be lending their support.
This massive stimulus package that has something for everyone was cheered today by the financial markets because it is the only hope that more focused government spending and a healthy household sector could start to pull this economy out of this severe recession.
The currently proposed new stimulus amounts to $819 billion divided into an additional $544 billion in Federal spending and another $275 in tax cuts. The new government spending covers the gamut of additional health care expenditures, more unemployment benefits, help to the individual state governments in addition to renewable energy projects and highway spending.The tax cuts are also broadly base. Almost a third; $90 billion; goes to Business expensing while payroll tax holiday amounts to $99 billion while renewable energy tax credits accounts for $20 billion while Tuition tax credit gets $10 billion.
Is this prescription sufficient to restore the patients health? Only if unemployment is not to go above 8-8.5 %. If that threshhold is crossed then an additional stimulus will be called for.
9 comments:
Although the newly proposed stimulus package seems like a breath of fresh air, the government is making an attempt to buy more time, in essence leading to higher deficit which has already reached an extremity. Perhaps society emphasizes carpe diem a bit much, no? The government saves the day today, but in doing so, makes tomarrow seem so much more impossible. As Peter Cohan wrote in his article, "What the Stimulus package means to you," the consistant increase of our deficit will result in a seemingly impossible and incurable issue as the dollar weakens. - Emmanuel Ramirez(Macro Economics - Tues&Thurs)
This seems like a temporary solution to a major problem. What will this do the US deficit as well as inflation down the road?I think that this stimulus package is going to be a quick fix, but not a long term solution. We need the American people to keep spending and living day to day. As well as wealth needs to be spread throughout. The rich get richer as the poor get poorer. Honestly though I don't no a solution...only time will tell where the economy is going.
-mary dixon ECO 105
I AM GLAD TO SEE THAT OUR GOVERNMENT IS ATTEMPTING TO MAKE MOVES IN A MORE POSITIVE DIRECTION. NOT ONLY FOR THE RICH BUT TO FINALLY GET THE MIDDLE CLASS BACK ON ITS FEET. ITS FUNNY THAT IT HAS TAKEN OUR GOVERNMENT TO LET THE COUNTRY HIT ROCK BOTTOM BEFORE ANYONE CAME UP WITH SOMETHING THAT CAN PULL US OUT OF OUR CURRENT POSITION. HOPEFULLY THIS MONEY WILL BE WELL SPENT AND NOT WASTED. IT’S ALSO IMPORTANT THAT DURING THIS HARD TIME BOTH GOVERNMENT PARTIES TRY TO PUT THEIR DIFFERENCES ASIDE AND DO WHAT IS BEST FOR THE WHOLE COUNTRY. GET MORE MONEY BACK INTO THE HOUSEHOLDS AND TRY TO HELP ALL THOSE WHO ARE UNEMPLOYED. HOPEFUL OUR GOVERNEMENT WILL HELP TAKE US OUT OF WHAT THEY ALLOWED US THE PEOPLE TO GET INTO. AT THIS POINT THE ONLY THING WE CAN DO HAS A NATION IS PRAY THAT THINGS DO NOT GET ANY WORSE THAN THEY ALREADY HAVE BEEN. AMANDA MCQUEEN (WED MICRO ECO 106)
With the current state of the economy, the government must act in order to stave off a depression, but the short term stimulus needs to be coupled with a plan to improve our long term fiscal health.
-William Fabian
The package may be the ony way out of a mess that has slowly been growing in the world economy. the package in a whole may be a great idea but many people havea problem with the little things that are added in there like a contraceptive amount that is estimated to be about 3 billion doallars and for about 12 billion for ice breakers in the hudson.what presedent obama is trying to do is to get transporation and logistics of the united staes up to par with other other countries and even better which is a good idea but what ever is in the bill it must be ok'd be both parties.
-Ben Williams eco 106 Wed 6Pm
This package will definitely help the economy. If you figure a construction worker gets a little more money in his pocket, he will then be more likely to buy a nice lunch or go out to dinner. That restaurant now benefits and so on and so on. I think its a great temporary solution.
-Andrew Neiderman
It seems that this stimulus package will be good for everyone, but alot of give and takes will have to come from people before we can reap the benefits. this stimulus means so much for so many people that they're hoping and praying it will help them get back on their feet. it's nice that the government is reaching out its hand to help the major corporations out so they don't go bankrupt, but what about the greedy CEO's that did what they did? people want to know that they feel the same pain as the people who's dreams they crushed. whatever is in the stimulus package most people have faith that it will put them back on their feet
(Macro-wed)
(Krystal Alexis)
I think the stimulus package is one big bandaid. We hope that this will help the economy but we will not know that for a while. as most people I am hoping for the best but only time will tell.
Addy Forthenberry
I find the Stimulus Bill to be a very short-term answer to an enormous problem. Obama says we need change and big things need to happen but does throwing around large amounts of money solve any problems, or create problems for years to come?- Kayla Candrilli
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