FINALLY, Stimulus Bill passes

The Senate finally passed President Obama's stimulus bill for a total of $787 billion on Friday, February 13. President Obama hopes that the bill will "boost an economy in freefall with a combination of government spending and tax cuts and credits" according to CNN.com.

After several revisions to the first draft of the stimulus package, it is finally broken down as follows:
$267 billion for direct spending such as food stamps and unemployment benefits
$212 billion--possibly more-- will be aimed towards tax cuts
$120 billion towards infrastructure development--this includes road and government building repairs
$100 billion to be used towards education (improvement in school technologies and the such)
$30 billion on energy projects (this encouraged a majority of the controversy as the immediate effectiveness for economy)

When the stimulus package went to the House for a vote there was no Republican support. Not much changed when it faced the Senate for the final vote, but it did manage to swipe three Republican supporters, which was all that was needed for the bill to pass. All of the Democrats in the Senate supported the package, whereas seven in the House rejected it. The bill passed through the Senate with a final vote of 60-38.

In this article, I found it interesting that they broke down exactly how individuals will be directly affected by the package:
Individuals will receive a $400 tax credit
Couples will receive an $800 tax credit
Many students will receive a $2500 tuition tax credit
First-time home buyers may qualify for up to an $8000 tax credit
Those who receive social security will receive a one time credit of $250

Although these tax credits look nice, apparently the stimulus package is only 35% tax cuts and 65% spending. But, hopefully that spending will generate all of the things President Obama anticipates. It is still estimated that this package will create somewhere between 1-3 million new jobs.

Editorial for JMC425

The declining economy weighs heavily on the shoulders of every American. We voted for a president that promised change and we should expect nothing short of outside-the-box creative solutions to problems that seem to be bursting that box to shreds. The unemployment rate was at its lowest point in the year of 2008 than at any other time since World War II. Millions of jobs have been lost and savings diminished, while the economy shifted lower and the nation’s deficit grew higher. President Barack Obama’s solution is the $825 billion stimulus package, called the President’s American Recovery and Reinvestment Plan. President Obama says this package will boost America out of the current recession. The stimulus package is not about satisfying one single party over another; it is about pacifying our nation’s economy by creating jobs, offering tax cuts and supporting alternative energy sources among many other things.

The stimulus package promises the creation of millions of jobs and long-term growth for the economy. The common misconception is that tax cuts are the only answer for immediate relief. Some Republicans suggest that tax cuts should account for more than the allotted $275 billion. While tax cuts are guaranteed and do immediately relieve the economy, tax cuts are a short term solution. Tax cuts do not offer jobs to the millions of unemployed. Tax cuts do not benefit the future growth of our nation. Tax cuts are necessary, but only in combination with the creation of jobs, infrastructure development, investments in healthcare computerization, improvement in school technology and training, and modernization of federal buildings and homes.
Although we cannot completely depend on the government to fix the entirety of our country’s problems, we must rely and trust in the government to provide a short-term boost that will lift us from this severe recession and give Americans the confidence to make the changes that will provide long-term benefits.

The President’s American Recovery and Reinvestment Plan is a blank slate, a fresh start. Our country is at a low point but we do not have to stay between the rock of rising unemployment and the hard spot of our economy. This is a considerable amount of money and it will add to the budget deficit in the short-term. But, if nothing is done jobs will continue to deplete and incomes will dissipate along with the pride of our country. The American people have called for change and President Obama has provided our nation with an opportunity. With this stimulus package, President Obama has provided us with the opportunity to stand up and re-claim our spot as one of the most enviable countries.

Republican's criticism of stimulus bill

Republicans are questioning the overall effectiveness and price of Obama's stimulus package. As the result of House Republican insistence, a calculation was made determining the overall price of the stimulus package including interest to pay the borrowed money back. The "actual" cost of the bill would be around $1.2 trillion including the $347 billion in interest.

I was quick to criticize the Republicans for being, it seemed, close-minded, but it is important to admire their criticism of the bill from all aspects--especially since they don't feel they were able to share their input in crafting the bill. Republicans have said that they feel left out, and although they know the bill is going to pass regardless, they want answers and are unhappy about being pressured into voting on such a huge amount of money.

Both parties want what is best for the country, however, the problem lies in agreeing on the same solution.

For a look at the current economic recovery report click here.

To glance over President Obama's economic agenda click here

Stimulus bill passed by House

As stated in this article , Obama hoped to receive bipartisan support for the bill regarding the economic stimulus package. Although no Republicans voted in favor of the bill (and 11 Democrats also voted against it), Obama is not giving up. In order for this bill to be passed in the Senate, Democrats must all vote in favor and rally support from at least two Republicans.

Republicans offered their amendment, which would include more tax cuts and less spending. This amendment was voted down.

One thing that the two parties are agreeing on is that something has to be done and it needs to be done fast. Both the Republican and Democrat parties want to get the final bill to President Obama before President's Day in February.

Daily Briefings

President Obama is dedicated to his new economic plan. He has requested that he receive daily briefings because he sees the economy in a state of crisis. These daily economic briefings will be led by White House adviser Larry Summers, who is the head of the president's National Economic Council.

http://www.cnn.com/2009/POLITICS/01/22/gibbs.presser/index.html

Obama encourages hope for bleak economy

Americans watch with desperate hope as the economy grows dimmer and dimmer. Some pray that President Barack Obama is the answer to our nation's problems, but while his ideas are innovative, Republicans criticize that even his creative plans can’t remedy the seriously bleak economy. Obama plans to focus his strategies on solutions that will not only solve one problem but several, such as unemployment, the economic situation and global warming studies.


Obama sees the economy and unemployment rate as “a bad situation” that “could become dramatically worse” without urgent action. Obama wants an $825 billion stimulus package to give the economy a boost. This would include adding 3,000 miles of electric lines, in efforts to transport an alternative energy source. Obama says that this plan could save taxpayers $2 billion by making federal buildings energy efficient and would save American families on average over $300 on their energy bills. Obama seeks to put more money into science grants to inspire innovation. Obama’s plan would create an estimated 4 million jobs in the next two years.

It seems Obama wants to put money into the economy to create more jobs to relieve the rising unemployment rate, make the nations buildings and homes more energy efficient to save taxpayers money in the long-run and he wants to inspire and reward creative thinking among college students to expand their knowledge to find better solutions to these problems in the future. In my opinion, this plan offers solutions to several different problems, but I am not an economist or a Republican. So I have neither the experience to completely assure that this plan will be as effective as Obama assures, and I also am not stuck inside a box thinking there could only ever be one solution to each and every problem. Tax cuts are not always the answer and they certainly won’t solve the devastation of our economic situation, but that is exactly what Rep. Cathy McMorris Rodgers offers as a resolution. Tax cuts and balancing the budget is her simple answer to the complex equation of our economy.

I think some Republicans may have a case of temporary tunnel vision, but after Obama’s plan is put into action and starts to boost the economy and create more jobs, as promised, they will be just as thankful as everyone else. There are several things I admire about President Barack Obama, but at the very top of the list is his honesty and sincerity. He truly wants to help the nation rise up and he wants us to know what he is doing to make that possible along every step of the way. I don’t see how Republicans can criticize his plan after promising full accountability for government spending. President Obama wants to create a website to show Americans how and where each dollar is being spent.

While I was unsure of my final thoughts for Bush, I can wholeheartedly say that I have faith in Barack Obama’s inventiveness to help this country succeed.