Your 2009 economic stimulus check will come in the form of a tax cut, not a physical check. How will Obama’s stimulus plan work to save our economy?
President Obama has taken on the economy as his first large scale concern as our newly elected president. Like most large scale government legislations, the economic stimulus bill has been revised so frequently that it’s been difficult for the average person to grasp, and to track what is currently part of the package. And if that isn’t enough, turn on any news channel and you will hear many well respected economists disagree about the plan, and provide excellent reasons why. Here’s where I’d like to try to make some sense of the muddle.
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Why Do We Receive Economic Stimulus Checks or Tax Cuts?
First, where did the Stimulus idea come from? This isn’t a new idea. You can find stimulus packages in nearly every company with large economies throughout modern history. Some experts speak of FDR’s New Deal as the most successful stimulus package in history. Others will tell you that there is very little stimulus in stimulus programs, and recovery would come naturally if government would stay out of the way. One thing is for sure though: such economic packages and those checks that come with them make the nation feel good. We get a stimulus check in the mail, we hear of jobs being created, and when people are scared, they feel better seeing the government doing something to help.
The 2009 Obama Stimulus Plan: Kill Two Birds With One Stone
Next, what are the important points? Think of the Obama stimulus plan as a “kill two birds with one stone” idea. We need roads and bridges. We need to create jobs. We need to have money circulating so that business can hire people to work on these projects.
For instance, we need to catch up to the rest of the world in science and mathematics but we’ll need money to educate people in these disciplines. America has a Wind Corridor in the heartland of the country but we lack the power lines and storage facilities to put wind power to work. The upgrades necessary to harness our Wind Corridor (which requires workers to upgrade the power grid) will also need funding. These are just a few examples of projects that could benefit from a stimulus plan.
Arguments Against The Economic Stimulus Plan
You’re probably thinking that killing two birds with one stone sounds like a fine idea. Are you surprised to hear that when the bill was voted on in The House of Representatives, not one republican voted yes? Let’s take a look at two of the most popular arguments against the stimulus plan.
First off, while putting people to work sounds like a great idea, new grass for the National Mall and birth control don’t sound like items that should be part of the stimulus package details. Republicans argue that democrats are using this as a means to get some of their pet projects under way. The republicans scored a partial win getting the birth control portion of the bill removed.
Secondly, job creation — while it’s a significant goal and a high priority — will take a while to happen. Large scale projects will take time to address and complete. For instance, when the government has electrical work done spanning thousands of miles, it will require bidding, permits, hiring of workers, manufacturing of materials and much more. This clearly won’t be happening overnight, and won’t be completed for a good long time (years!), for that matter. According to republicans, the recession will likely be over before these projects can benefit the economy. The democrats are calling their projects, “shovel ready” but many argue that that is not the case.
So what’s next? President Obama has stated that before the Senate vote, he is committed to making this more of a bipartisan effort and that he’s open to making more changes to the bill, if need be.
We don’t know everything about the Obama stimulus plan but we know the basics. Want to learn more? Find details of the 13 page congressional summary of the plan right here.
So will any second stimulus check, tax cut or other aspects of the plan help to save our economy? There will surely be some effect, but it remains to be seen how it will all shake out.
Contributing Writer: Tim Parker writes for Elementary Finance.
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I’m going to have to disagree with you about the stimulus plan making the nation “feel good.” It doesn’t make me feel good and according to recent polls, 40-50% of Americans have a similar negative reaction. This bill is a spending bill, used by Democrats to solidify their base and expand the base by increasing the number of Americans who pay zero taxes.
You say we “hear of jobs being created.” The only jobs that are certain to be created are government jobs. Everything else is speculation.
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Im not to happy about how the government wants to spend this money. If you dont give the money out to the American people to spend , how do you except the Economy to get any better. Im on a less than 40,000 a year with two kids.
We live pay check to pay check…And how is this helping us.(Its not) And you think taking 1500 off a new car will make people go buy a car NO’ I have a 99 model wish I a new car cause having problem with mine, but cant afford and i dont know how thing will be by summer because when gas was 4 dollars a gallon we were really in trouble , our payments were late and sometimes missed. So if you really want to help the Economy give enough money for the American people to get out of theirs debts, buy a car , home or whatever. Thats the only way its going to help. There is Billions of dollars you can give out a great amount to help the lower class and middle class people..
Dont know why im writing this because it wont help and the money will be pocket to the already rich, so enjoy it, have a wonderful vacation with the Hardworkers of Americas money…..
….I am converting to Republican… Obama’s plan is a lot of poop. It will not help me at all. $10 more a week in my paycheck. Ok..I can now go out and help the economy by buying a gallon of milk…Thanks for all the help you promised the middle class and poor Obama!!!!!
I think that everyone who wants to see our new president succeed, should do just that, and of course, for those who don’t, I can only imagine what is to come in the form of Freedom Of Speech.
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single mother of six my number#13107419857 nights/weekends/texts at&tphone my new address 1215 LOGAN ST 35055 APT B i been praying us as american tax payers can be able in 2009 to recieve a stimilus check like last year to help with catching up on bills get the children some things they really need i need a car to get to work oh god if i had a car i can afford things the children need i cant sleep at night stressing about getting the things for mY children .i am hurting ,i felt so good last year i caught up on bills i got the children clothes for school and church i brought so many luv diapers oralgel binkys baby vitamins BABY LOTION SHAMPOO and i thank GOD .ALSO I CANT AFFORD A HEADSTONE FOR SON.prayers
i dont like it at all….last year was the first year i ever recieved a stimulus check…it was only 300, and i heard of the lucky people who got 600…congrats…..but it made me so happy to recieve an extra amount of money after taxes were filed, and returns already spent. to hear that we wont recieve one this year, now thats just straight up wrong…we hard working, middle and lower class families get taxed a lot of monies. From both federal and state treasuries. im lucky to recieve 25 percent of what im being taxed. lucky!!i dont make a lot of money, probably less thna 14000 a year. way to go obama!!!!you are making us proud!!!!
If Obama would give every TAXPAYER $100,000 one time check, what do you think people would do with that money? They would pay off their mortgage, pay off bills, or buy a home and then go out and put the money back into our economy. They would go spend that money at Walmart, Sears etc., or invest that money. I think our economy would be boosted alot quicker than the path we are on now. Why bail out the big exs that got us into this mess in the first place. So far the money given to the big car deals did not help, they still ended up in bankruptcy. What about Wichita Kansas where all the aircraft workers are being laid off by the thousands, Obama where is your help for these folks> We are all hurting and it is time to rethink you plan of action before we are all to far gone!!
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I don’t remember receiving a $250.00 stimulus check. Is there any way I can verify if one was sent to me.
Thank you
Interesting to read this 30 months after it was written. That STIMULUS worked out so well. 535 million to Solyndra, now Bankrupt. LightSquared gets an FCC pass on licensing and may wreak havoc on our GPS Systems, Pelosi’s Brother in Law implicated in 737 Million dollar FEDERAL loan fraud, Fast and Furious results in murder of Border Guard, Obama “investing” OUR money in Tesla Electric Cars, with affordable prices tags of 109,000 and 55,000 dollars!!! GM gets subsidies for the VOLT to the tune of 240 MILLION and 140 MILLION for batteries that are made in KOREA!!! The VOLT and TESLA cars will get 7500 dollar subsidy for each one sold (Teslas have been bought by George Clooney and some other Liberal Hollywood Star – WHOOPIE!). Of the over 2,000,000 cars SOLD by GM, LESS THAN 4000 of them were VOLTS. Obama was pushing and promoting the “SUCCESS” of Spain with Green Energy and even had the Energy Dept SLAM a negative report by a Spanish Researcher who said it was an economic catastrophe. Once the Spanish Government admitted it was a failure, and stopped funding it, Obama shut his yapper about “Spain’s Green Success.” This guy continues to make BAAAAAAD decisions ans should be STOPPED!!!!