Speaker of the House Nancy Pelosi and House Majority Leader Rep. Steny Hoyer (D) of Maryland spoke Wednesday about the stimulus package on Capitol Hill, where lawmakers compromised on a $789 billion deal.
(Joshua Roberts/Reuters)Photos (1 of 1)
What stimulus bill can, and can’t, do
The $789 billion plan cuts taxes and shores up safety net. But how long will its benefits last?
By Gail Russell Chaddock | Staff writer/ February 12, 2009 edition
Reporter Gail Chaddock discusses what the economic stimulus bill has in the way of spending on education.
Reporter Gail Russell Chaddock
Washington
Congress is on track to approve a $789 billion economic stimulus package that eclipses all the war spending since US forces set foot in Iraq.
With bank credit still mostly frozen and consumer confidence in a trough, President Obama persuaded enough lawmakers that the only thing left to revive the economy is a massive infusion of government spending – and fast.
The plan set to clear Congress by week’s end includes $282 billion in tax cuts and the remaining $507 billion in spending on issues ranging from education and road repair to a bigger social safety net.
When not loaded with “pork-barrel” spending, a stimulus plan is supposed to be “timely, targeted, and temporary” – a formula both Democrats and Republicans adopted as they worked on this legislation. But the bill’s supporters and critics alike note that Congress is navigating uncharted waters, given the severity of the recession and the mammoth intervention by government.
The gap in gross domestic product between where the economy would be without a credit crisis and where it is today is about $1 trillion, many economists say. There’s no established template for how to pull out of a gap of that magnitude.
The $789 billion is “certainly enough to make a difference,” says Chad Stone, chief economist at the Center on Budget and Policy Priorities in Washington.
With the exception of a $69 billion provision to fix the alternative minimum tax for 2010 – a move that he says will not stimulate the economy – “there’s over $700 billion of good stimulus. It won’t turn the economy around on a dime … but it will certainly soften the downturn.”
Others, still looking over the details of the final plan, say the bill is not the right scale and scope to turn the economy around.
“It’s too much of the wrong thing. All these tax cuts won’t do a lot of good,” says Peter Morici, a business professor at the University of Maryland. “We really need more of infrastructure spending – those [projects are what] put people back to work.
“At best,” he adds, “the impact will only be temporary. We have to fix what got us into this mess, and that means fixing dysfunctional banks and our huge trade deficits with China and foreign oil producers.”
But for families, businesses, students, and unemployed workers, the plan poised to clear Congress sets up resources barely unimaginable in the recent years of diminishing discretionary spending.
A boon for education
New education spending alone is close to $100 billion. It includes $40.6 billion to local school districts to avoid budget cuts and layoffs and to upgrade schools, plus $5 billion in bonus grants to states that meet performance measures under the federal No Child Left Behind Act.
For college students, the higher education tax credit is increased to $2,500 and made partially refundable – a move targeted at some 4 million low-income students. In addition, the maximum Pell Grant, also targeted to low-income students, is raised by $500 to a maximum of $5,350 in 2009 and $5,550 in 2010.
With 43 states already projecting shortfalls of nearly $94 billion for fiscal year 2010, that new funding could help save school budgets and jobs for teachers across the nation.
The new funding “sends a message of confidence to school districts,” says Rep. George Miller (D) of California, who chairs the House Education and Labor Committee.
The final package for education is down from $140 billion in the House version of the bill, which passed 244 to 188 last month with no Republican votes. In the closing hours of negotiations over a final version of the bill, House Democrats fought hard to preserve those new dollars, especially $14 billion in funding for new K-12 school construction.
But as the dust cleared, supporters of the House version of the bill said that, even at the lower funding level, the infusion of dollars for education will make a big difference for US public schools.
Even though the final bill zeroed out funding for school construction as a specific line item, “there’s so much latitude connected with modernizing, renovating, and repairing schools – and so many projects in every school district in the country – that this will help tremendously,” says Robert Canavans, chairman of Rebuild America’s Schools.
As many as 4 million jobs
The economic recovery plans aims to create or save 3.5 million to 4 million jobs. It’s a figure in range of the 3.6 million jobs lost in the US since the downturn began in December 2007.
The stimulus legislation also extends the social safety net for those who are already unemployed by extending and improving unemployment benefits.
Under the terms of the deal, laid-off workers are eligible for as much as 33 weeks of extended unemployment benefits, including a $25 increase in weekly benefits.
There’s also a 13 percent increase in money for food stamp programs, $4 billion for more job training, $2 billion to help communities buy and restore foreclosed properties, and $1.5 billion in short-term rental assistance for families who’ve lost their homes.
The plan includes some $137 billion in new healthcare spending and $85.7 billion to rebuild and repair infrastructure.
Some $30 billion for clean, renewable energy projects aims to be a down payment for a new national strategy on energy. This includes funding for an upgraded power grid, advanced battery technology, and energy-efficiency measures. New tax incentives include $20 billion for renewable energy and energy efficiency, including a tax credit of as much as $7,500 for families who buy plug-in hybrid cars. There’s $5 billion to weatherize some 1 million homes, targeted to low-income families.
Smaller tax cut for workers
To attain a compromise that would get enough support in the Senate, Mr. Obama agreed to scale back his signature tax cut, called Making Work Pay, from $500 to $400 per worker ($800 for couples filing jointly). The new tax cut, fulfilling an Obama campaign pledge, cuts taxes for 95 percent of American workers. It phases out at $100,000 for single filers and $200,000 for couples filing jointly.
Comments
2. Ruben | 02.12.09
This reminds me of the winter of 2003, when Congress agreed to support the impending war on Iraq. I have the same feelings, back then I felt as if the President was slipping in some personal or partisan agenda with the response to 9-11. Right now I feel as id the President is slipping in some personal or partisan agenda with the response to the economic collapse. And the sad part is everyone just goes along with it…
3. Hilary Smith | 02.12.09
The bump from the stimulus will be short-lived if the money, once converted into wages, is spent on cheap imports. We have to get our trade policy under control but that’s unlikely to happen so long as we owe so much money to China. We’re in no position to negotiate trade with them. What’s happening to us is the same as what’s been happening to Africa over the last 50 years. They borrowed money from the international community in exchange for trade policies that enabled the world to dump cheap goods into their economies. The result is that African economies cannot grow in the face of global competition and they’re powerless to implement import quotas or tariffs. We’re headed down that road too. The WTO has become so powerful that democratic governments are unable to defend the interests of their people. It’s scary.
4. Donald E Wiliams Jr. | 02.12.09
I am happy to see that the government is attending to the needs of ordinary Americans. As a disabled African American worker, I can utilize some of the programs inculcated in the rehab legislation. This is good news for me and I’m sure many others that are in my predicament.
5. Jesse | 02.12.09
How are we believing in our own capitalist system if all facits of business, education and commerce are being funded and administered by our government? Companies will fail, it’s the natural progression of things, and to try to keep these companies and programs alive by throwing money at them is limiting. It doesn’t allow for people to use their ingenuity and enterprenuership to create new products and companies because all the money that could be going to funding them is going to businesses that have brought themselves to the brink of collapse. It’s dismaying to see our government throw trillions of dollars at an issue that probably won’t help anyways. Remember the $750 billion dollar bailout passed less than six months ago? How much longer will we put ourselves in insurmountable debt until we realize that that is no solution? We need a new idea in front of us and in this day of environmental degredation isn’t there a planet we need to focus upon? If we put forward progressive ideas towards changing the fundaments of our life today, we may have a chance to find a whole new job base and a revitalized economy. We are still living on the ideals of consistent growth and expansion, isn’t it time to focus upon sustainability in our practices and harmony with the earth that has given us life?
6. Martha | 02.12.09
Government should allow people who receive severance pay, have funds in pension funds and stocks to withdraw those funds with no early withdrawal penalty and no taxes if the funds are utilized to create their own jobs by investing the funds in a new business. People will create their own jobs which in turn help the economy and reduce unemployment rates
7. Adam | 02.12.09
I have not heard or read anything about the United States dropping free trade as a means to create jobs. Why not? College economics try persuade a person to believe that free trade is the best option for the world. But, this theory doesn’t take into account the difference in quality of life and lifestyles of people in different countries. To maintain jobs in the United States, could we please have something called fair trade? This means that if China imports products to the United States, then their products are sold at the same prices for the same products which are produced in the United States.
8. paresh nakrani | 02.12.09
put additional tax 25 dimes per gallon since oil price is down, allow more drilling, and use that money only to support job loss, means indirectly stimulate mfg and service sector,
other way, even if you give, lets say 2 trillon to bank and individaul house holder, they will try to be healthy (save more), rather than spent
so it is demond of times where fed act as bank itshelf to stumulate job by giving every posiible suportto mfg and service sector and not give away money to good or bad bank or individual house holder where fed understand good solution
9. al | 02.12.09
What about a tax break for seniors. We have a fixed income with no promotions in sight. Our retirement funds have shrunk by 40% or more. We have reduced our car and credit card payments so most of a tax cut will go directly into spending on the economy. We have no earned income so does that mean we get nothing? I guess they are greasing palms and paying back contributors to their election instead of really helping the economy!!!
10. Diane Nilan | 02.12.09
Still no relief for those with dire housing needs–including the growing homeless population.
Affordable housing, decimated in previous administrations’ budgets and by the wrecking ball, doesn’t seem to push the pols’ hot buttons.
In the meantime, more and more families, veterans, and desperate individuals land on streets of cities and towns nationwide. Henrietta Hughes is just one of millions. Sharing the extra houses with those who have none, now that’s a concept!
What will it take to direct long overdue resources to ease this nation’s housing crisis?
11. Stanley Booher | 02.12.09
I have not seen any thing in this bill that would help the veterans of this
great country of our, pull thru these bad times. here I set 100% disabled as
a results of three wars, along with thousands of other veterans.Have we once
again been forgotten?
Stan Booher
El Paso, Tex
13. john | 02.12.09
So the people in the senate want to scale back Obama’s signature tax cut
from $500 a person to $400 a person. These people in the senate don’t care too
much about middle waged Americans, you know why, because they are rich and
they were not goning to get any of this money anyway.
14. sheli smith | 02.12.09
I believe there is one topic which would drastically help with the unemployment situation and is not even being addressed in comments or articles. This is the massive amount of jobs being done by illegal immigrants. There are known to be 12 million and possibly many more now working in this country…..they accept wages lower than the standard driving down wages for all…also because they are here illegally they accept unsafe and unsanitary working conditions and live in crowded and substandard housing..they are a boon for employers’ bottom lines but disasterous outcomes result for the average American worker. There is no shortage of low end workers in this country but they are sidestepped in favor of an illegal because of the profit involved….take these 12 million out of the workforce and you are well on your way to solving the unemployment problem. From there work on the fact that employers are getting away with much too much as far as low wages and no benefits.
15. POWinCA | 02.12.09
Let’s do the math. The median household income in the US is $50,000. Let’s assume that benefits and taxes are 100% of income. So a job costs $100,000 a year. A $789 billion plan could “buy” 3.95 million jobs, with benefits, for the next two years.
Yet Obama claims this plan will create 3.5 million jobs. Where are the missing half million jobs? Furthermore, “stimulus” is supposed to have a multiplier effect. Why would this plan create fewer jobs than the federal government could hire with the same money and have a job multiplier of less than 1?
The answer is because this plan is filled with WASTEFUL SPENDING. I’m not suggesting for one second that the government hire 3.95 million federal employees at the median wage. I’m saying that it is a good benchmark to measure how badly this plan is designed. Under a federal employment plan, these workers could start work in about a month. Under this bill, we won’t see these jobs for years! And in six months these politicians will be asking us for ANOTHER $800 billion because this $800 billion didn’t work.
I also find it hilarious that we will be spending MORE money on public schools which have already proven they can’t do the job with the funding they get. Research has shown time and time again that educational outcomes are NOT dependent upon levels of school funding. And bonuses will be given for NCLB excellence under past standards and funding levels? I thought liberals HATED NCLB. They said NCLB was a disaster, but now they are supporting it with money. Unreal!
16. James W. Fencl | 02.12.09
To whom this may concern:
Just in case this stimulous packag lacks or fails to make the American economy work (I pray to God it does) I have an idea.
My idea involves every American, from Ceo’s,Factory workers,Auto assemblers, to Janitors. Every American will take either an hourly or a salery cut in pay. The Factory worker making $25p/h down to $23p/h, theCeo making a $100,000 salery down to $95,000, the Auto assembler making $55p/h down to $49p/h, and the Janitor making $18p/h down to $16p/h. The only American not to be effected would be those making minimum wages.
Can you see what this would do to the economy? For one it would lower the cost of living. It would make cars, grocerys, schools, homes more affordable because every American would be contributing to make America succeed again. It would help big companys eliminate lay offs because they could see profits rather than loses. It would cause other countrys to follow our example. This Great Idea would turn the economy around.
I am just a common man who does not know all the logistics of this Great Idea, but I believe that you sirs have the knowledge to make America work again. I believe that you sirs can turn the American economy around.
Sincerly yours,
James W. Fencl
Lombard, Illinois
17. Jim Johnson CRS | 02.12.09
It’s too bad they are cutting the $15,000 tax credit. That would entice more home sales and have an immediate effect of the economy.
18. Noele | 02.12.09
If I’m stuck at the bottom of the pit at least some bread and water will sustain me until something else is worked on to get me out. No action and no help is certain doom.
19. Charles | 02.12.09
The American people have decided that they ought to quit spending and start saving. Unfortunately the government begs to differ, and so we’ll be spending money we don’t have whether we like it or not.
Change we can believe in… indeed….
20. Loretta Ashby | 02.12.09
It appears that in the good old American Way if there is a problem don’t try to fix it just give out money and don’t think about what will happen when the money runs out. The Tax system is not working and has not worked for many years. The Federal Goverment should do like the States have done for years and that is to tax every thing that is bought. Everyone would be paying taxes. There would be tax exemps to hide behind and no reason for the IRS which is one of the worst run departments in the history of our country. Every thing should be in English,this would save millions of dollars each year in publication alone let alone road signs. If people would to come to American they should learn to speak out language and under stand out customers. We as Americans can no longer support the would. Congress should be elected like the president for only 2 terms. We need new ideas and fresh blood who won’t sleep in meets and IF YOU GUARD MY BACK I’LL GUARD YOUS will be out the window. I am sure if our forefathers could see what we did to their dream of a free country they would foreclose on us as we are no longer worthly of the blood that was shed for us.
21. Larry Linn | 02.12.09
The Republican-Bush economic crisis is the result of the Bush Mis-Administration? What did Bush and his appointees do? They announced a crisis and presented congress with a two and one-half page template for congress to approve. Congress approved it, the big Banks and Wall Street Republican brokers got bailed out, without conditions. Now the Repugnicans are nit-picking while the economy dives. They have no honor, let alone respect.
22. David | 02.12.09
You have been obamboozled. There is no need for this stimulus. Freedom as we now know is gone. You will know bow down to the government bureaucrats sign off on everything you do.
23. anotherview | 02.12.09
The central government should not nationalize private banks, and should not buy their so-called toxic debt. These actions makes no sense. Bush II said he had to violate market principles to save the market. Hogwash. The market works when left to do so. Further, the notion of toxic debt (a meaningless term) and its removal from the books of the banks as part of the cure-all here ignores that this debt consists of home mortgage loans whose face value exceeds the market value of the home. Real estate people call this condition “upside down.“ Hence, these mortgages will detoxify only when home values rise to a level covering the mortgage loan dollar value. That day nobody can predict. We taxpayers should not let our government buy these devalued mortgages for a dime more than their market value. Meanwhile, every auction sale of a foreclosed home for a price less than the first mortgage loan wipes out part of that loan value and also the mortgages junior to it. The banks and other mortgage lenders fear this housing market scenario. But let us say, too bad. Banks and lenders took this risk. They should not transfer this risk to the American taxpayer now that the unthinkable has actually appeared. Instead, let the market work. After all, Washington Mutual Bank, the largest savings and loan institution in the nation, went bankrupt. What happened? Investors and shareholders lost out. JPMorgan Chase promptly bought this bank. Hardly anybody remembers. Let the market work. B of A? It got itself into a pickle. Let us say to the U. S. government, hands off this failing bank. Let the market work. Another financial institution will step forward to embrace the remains of this bank. Stop shoveling money into this failing bank and others like it. Stop throwing good money after bad. Let these banks fail if they must. The market will work. As well, the central government will then not have to shell out HUNDREDS OF BILLIONS OF DOLLARS OF TAXPAYER MONEY to prop up these bad banks with their poor business models. Further, the central government will not have to borrow this money from others, like China, to fund this gargantuan bank bailout. In turn, America will avoid its having to saddle itself with more debt and the associated interest payments (an outcome nobody talks about, including BHO). America does not have to bleed for the bad banks. Let these bad banks fail in the name of national economic health. Start over. Without these bad banks, America will prosper all the more.
24. John | 02.12.09
Didn’t ANYBODY listen to Obama in the press conference? He said perhaps 5 times, “TO SAVE OR CREATE UP TO 4 MILLION JOBS”. He will be taking credit for jobs that are not lost!!!!!!!!!!!!!! That is insane! Where is our 4th branch of government????
25. Daniel Millet | 02.12.09
I’m glad that you are interviewing economists and economics professors to get your projections and not doing “he said, she said” faux-reporting. It’s refreshing to have a source of journalism providing me with facts. Hopefully this bill gets signed Monday and in 4Q of this year we can start another stimulus bill.
26. Sandra Glenn | 02.12.09
What should be done is what’s best for all of us,That’s creating more jobs for those of us who need them. Why not concentrate on creating more jobs instead of giving us a stimulus check? We need something that will last. A job will last. thanks, sandy
27. Charlie Parada | 02.12.09
The economic recovery plans aims to create or save 3.5 million to 4 million jobs.
What a bunch of political double talk. The US could loose another 4 million jobs, but the current administration could still say we saved 4 million jobs, therefore the stimulus package worked. How stupid does the administration think the average American is??
28. Steve-O | 02.12.09
The article notes: “Congress is navigating uncharted waters, given the severity of the recession and the mammoth intervention by government.”
First, how is the congress in “uncharted waters”? What about the New Deal?
Second, history has not ended: free market ideology is now on life-support. The US taxpayer has had been forced to the rescue of the private sector — that is, the “too big to fail” private sector. However, the US taxpayer has always been there to lend a hand to the “too big to fail” private sector.
So, back to my original question: How is the congress in “uncharted waters”? The size and severity are perhaps new, but not the idea — particularly regarding the private sector. Or, perhaps “uncharted waters” means that the economic package is directed at the public sector — the taxpayer — for a change.
29. JN | 02.12.09
you are kidding this could not stimulate even with a copy of the latest SI magazine
30. Stephen | 02.13.09
I am disappointed with $85.7 in infrastructure spending. Too bad that, instead of lower taxes that we didn’t get incentives to buy autos, houses and health insurance.
How is the $137 billion for health being distributed?
The $30 billion energy bill also seems small in comparison with what we send to the Middle East for oil. I sincerely hope that corn biofuel, which does not decrease our carbon footprint and increases food prices, does not consume much of that allocation.
This certainly is a scattershot approach with everyone lined up at the trough.
31. Linda Gehring | 02.13.09
There is so much pork in most state budgets also, this is all rhetoric. The aim is to depreciate our dollar to a point where the only investment there will be in this country will be foreign invements in order to facilitate the global socialism that the Federal Reserve bankers, UN and CFR (Council on Foreign Relations) think would be a much better government for all the nations around the world than our own Constitution.
Wake up, America, you are being had.
32. Jim Johnson CRS | 02.13.09
Seems to be more pork than we originally thought. The $15,000 tax credit was the best idea of all and now they are whittling it down and changing it back to first time home owners only. A $15,000 tax credit to everyone would entice more home purchases creating a giant ripple effect. Commissions to Realtors, Title Insurance, furniture, landscapers etc. Then these people would have more disposable income to spend to help the retail segment of our economy.
33. hsr0601 | 02.13.09
Basically, Democracy respects the result following heated argument to seek fresh,productive, and progressive ideas, then now will be the time for bipartisanship to ensure success of the project for job generation and the 21st century infrastructure based on advanced science. If united, the world is certain to hail the democracy-driven, country-first decision thereafter, I believe.
34. Bekah Kiser | 02.13.09
I am writing concerning a few items on the stimulus bill. Of course the best way to get us back on track financially is to bring our service people home and let the rest of the world figure out the answers to their own problems. If we say that we can’t do this because we can’t leave the people with all the destruction, just remember that they are like Korea and Viet Nam, always fighting. Now Americans can go to Viet Nam on vacation.
In the inaugural address Mr. Obama mentioned that our health care costs are too high. Allotting more money does not help the system to become better. This is giving insurance companies and drug companies the right to continue to drug us severely. What most of us don’t know that they are very often hurting us rather than helping us. Much of our health care system is run by greedy drug companies. Did you know that as much violence, stealing and deaths are cause by legal drugs as illegal drugs?
The inaugural address also said that “We will harness the sun and the winds and the soil to fuel our cars and our factories.” Did you know that there is a place that is using growing microorganisms to produce energy? To use our hard earned resources to build a new rail line with the same energy sources that we are using now would repeat the same problem that happened with the Portage Allegheny in the last century.
The stimulus bill has been in the workings for a long time and it is very good. Why not give the congresspeople the weekend off to individually consider each item from the aspect that there are no sides, we are all Americans wanting the best for our country and our world. To make the final vote on Monday or Tuesday would not make a big difference in timing but may allow for tying up any parts that are not perfect.
Had you considered that there is a way of stimulating the economy without using tax dollars? Simply mandate that whenever a person’s job is eliminated, their home mortgage is immediately put on hold for 6 months or a year. It would be a delayed payment and their mortgage would not change, just 6 months would be added to the end of the payment schedule.
Thank you all for your hard work in this most important matter.
Together we can do anything!
35. Arlene Hobbs | 02.13.09
I tried to get money from part of the stimulus plan for women.
But I’m worried that the web page said things like a Lady Wants to Talk to you. But we did not talk. The web site just printed a message to me and I typed my reply involving lots of private information.
Then the “conversation” ended.
I hope I’m not in big trouble - for trusting this site.
36. FRANK FERNANDEZ-RUA | 02.13.09
When capital artificially increases the price of housing as has already happenned in the 70s and now, the end result is a recession. Somehow allowing them to destroy our system of life seems criminal.
37. Jonny | 02.14.09
Everyone is acting like this stimulus package is some kind of surprise-Obama campaigned on this! he’s keeping his promises.
Close Gitmo-talk to Iran and North Korea-leave Iraq-step up Afghanistan and most importantly-do something about this mess his has inherited from 8 years of tax cuts for the rich and deregulation. I say yes-way to go man-keep it up.
How did Reagan put it?-Don’t let the turkeys bring you down!!!
38. LastCall | 02.14.09
In my opinion, we the people, let this happen. How many of you who have posted notes here and/or are reading this have contacted one single government official to voice your opinion AND to let them know you will vote against them if they don’t represent their constituent’s wishes? How many of you take the steps required to SPEAK UP before it’s too late??? We have become a country of spectators who know not what it was like to actually fight for the hard-won freedoms we take for granted today.
We are seriously lax in this country and our government knows it-they are taking us, our wallets, and our kids’ and grandkids’ for a ride. Our freedoms are going to be usurped with the passing of this stimulus bill, hence Obama’s rush to get it passed, spewing fear and propaganda to get it done quickly. Don’t believe me, do a Google on “Health initiatives and Stimulus Bill” for yourself. Pretty soon we will have socialized medicine and the old will be put out to die! I am seriously of the opinion that WE are letting this government get completely out of hand by our passivity. If you have something to say, say it where it matters. Your representatives are only a few clicks away, a phone call or a fax away! They aren’t reading THIS forum, that’s for sure.
39. Jim | 02.14.09
This “stimulus” package is great for people who don’t want to work or pay taxes but love social welfare programs. I believe they are called Democrats.
40. Lou Ann | 02.14.09
There needs to be a tax credit not only for first time home buyers $15,000 but also for anyone purchasing a home, perhaps $7,000. Anything to get the housing market out of its slump. What is wrong with Obama, he isn’t even addressing how terrible the housing market has become. He can help to correct it, but isn’t even bothering. Politicians are not worried about the people, they are worried about themselves and getting reelected.
41. Toonces | 02.14.09
Reading these comments I can see that most folks are conservatives and that is encouraging, but conservatism hasn’t been applied in this country for nearly two decades.
Conservatism was thrown out the window when banks with the soft encouragement from liberals and Acorn decided to create loans for under qualified borrowers. In the wake of 911, conservatism gave way to the motherly wings of bigger government to protect us all.
The vast majority of Americans don’t act their WAGE and live way beyond their means through credit cards and 2nd mortgages. Our people and our government is drowning in debt. A debt we will never be able to pay off - unless we raise taxes through the roof, slash spending, and quit policing the world with our military.
We all know only one of those items is a real option - raise taxes. Rest assured we will see huge increases in taxes in the coming years.
42. Joe | 02.14.09
Perhaps this is just putting off the inevitable a little bit longer, but things were about to hit the fan with the budget deficits of states across the country. States needed this money simply to operate that’s a fact. Only time will tell if it was worth it to increase the national debt in order to restructure the economy. It’s a gamble, but America is used to gambling.
43. annnort | 02.14.09
NEVER type personal information to anyone on the internet - especially someone you do not know!! I trust you did not give social security number and bank account number. If you did, you need to check with your bank and social security administration first thing Monday morning.
The so called stimulus package is a scam. It was done too fast. Congress is supposed to discuss a bill. Congress had no time to read it!!! When someone tries to sell me something and tells me I have to hurry up and decide, I know they are pulling the wool over my eyes.
Member of Congress got us in the mess we are in by making the banks loan money to people that could not afford to pay. They put this in laws. They are responsible and are the ones asking for all this money. They blame someone else for something that is their fault. I do not trust the democrats. I believe the enemy of the United States is now among us.
45. Geoff Chipps | 02.16.09
Seems like the 60 billion or so tax cuts was what it costs for three Republican votes. That’s 20 billion dollars a vote. Talk about pork!!! If we really want to stimulate consumer spending we should note that we have a three tiered society. The upper class who sits on their money or invests it, the middle class who manage their debt and the lower class who spend their money before the bill collectors catch up with them. If you want to stimulate spending giving it to the rich will only stimulate investment to the middle class and they will try to pay down their debt but if you give it to the lower class it will be spent immediatly. The best way to do this is food stamps because then you know the money is used for basic nutrition for the people in the economy who will be doing a lot of the hard work in rebuilding our infrastructure.
The people on unemployment are another good source of consumers. They unlike the rest of us have time to use recreational and entertianment dollars that tend to recirculate. Instead of making the unemployment benefit longer why not give them enough to have a good time when they are off work!
I suppose what we are missing is the importance, perhaps power, of the American Consumer. Just as we are addicted to spending the rest of the world is addicted to our spenders.
As far as the free market taking care of things that would be nice if we had a free market. The market is expensive and owned by corporations
46. Bob | 02.16.09
Headed down the road to Socialism, Chavez is doing the same to Venezuela, Obama and his lackeys want a socialist environment in the U.S. and this impetus plan is the start. Handouts from government to a few, and porkbarrel items loaded in this bill will not aid the economic situation. We will owe our souls to China but those who are looking to gain from this bill do not see it or care. We are indebting our grandchildren for the rest of their lives. Where did these politicians learn their economics?
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1. ben | 02.12.09
This is all so scary