The $787B Economic Stimulus Bill
Ever since President Barack Obama took office in the January of 2009, there had been endless economic problems that faced his administration. His proposed solution? An economic stimulus plan that involved billions of dollars. On the short term, proponents of the program believe that it will provide tax cuts and create an estimated three million jobs in the United States. Over the long term, economists predict that it will stimulate growth by helping create economic activity.
In February, the $787 billion package has been passed. Though some sectors have lauded it, the economic stimulus has also been called “careless” and “wasteful” by some critics. This is because it contains a lot of the so-called earmarks for politicians. But a deeper problem persists. The $787 billion, as big as it sounds, may not be sufficient to spur economic recovery.
As the global economic condition takes a turn for the worse, the US is also affected. The US economy is already contracting in ways not seen since the Great Depression. With forecasts showing a vicious cycle, it is no wonder that economic contraction is difficult to stop despite everyone’s best efforts.
Is It Enough to Stop Foreclosures?
There are many arguments about economic theories and political policies in Washington and Wall Street. However, the real effects of these problems are being felt by the average American particularly when it comes to housing. Borrowers, by the millions, are losing their homes because they are not able to make payment. This American tragedy has sadly become commonplace. Though there had certainly been plans to save the housing market, it cannot save the homes that had already been lost.
In addition, it is highly doubtful if the housing stimulus package is enough to save the number of homes it has been designed to save. Despite Obama’s prediction that the economy can begin to recover during the second part of 2009, it doesn’t look that way from many perspectives. Time will tell whether his forecast will come true or not.
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Tags: barack obama, stimulus bill, stimulus package
This entry was posted on Thursday, June 11, 2009 at 9:29 pm and is filed under Financial Education. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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