So Barack Obama has just signed the $787 Billion dollar stimulus plan in Denver....... now what?
I doubt that this recession will go away anytime soon, but will Obama's package actually work to salvage the economy?
Will Americans from all over the country stop loosing their jobs, and will billion dollar industries stop asking for bailouts?
So many questions I wonder, but no real answers.
Most economists speculate that the economic decline will last throughout most of 2010 but this package is supposed to prevent millions of more jobs from being lost to the recession
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I suppose only time will tell, if the package is productive or not but to better understand the situation I will try and break down the Stimulus Plan to get a better understanding of what's to come.
- The plan is a combination of measures that is designed to aid US states that have their own budget problems. (i.e. California) It also includes tax cuts, and additional spending on infrastructure. (repairing homes, schools, roads, etc.)
- According to the Congressional Budget Office (CBO) the plan is likely to slow down the recession but not eliminate it entirely, and most of the money will probably be spent by 2010.
- However it all depends on the responses of individuals and government officials. The BBC explains that the tax cuts will only be effective if people spend their extra income instead of saving it, and infrastructure programs need to be up and running to make an impact on unemployment.
Further information on the Stimulus Package
On a lighter note, here is a political cartoon I found cartoonstock.com
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