FINANCE
At the beginning of the year, some people
were skeptical about the impact of President
Barack Obama's stimulus plan. Months later,
the economic report card clearly shows that
the stimulus plan has re-energized an economy
that, at one point, seemed too bleak to see a ray
of light or hope.
The basic components of the stimulus plan were
outlined by some of the following principals:
1. Provide an immediate tax cut for workers
2. Provide an immediate supplement to social
security for low- and middle-income seniors.
3. Provide $10 billion in relief for state &
local governments hardest-hit by housing
crisis to prevent cuts in services such as
health,education & infrastructure
According to the BBC, the economic stimulus
plan is worth 787 billion dollars. It is "a
combination of measures designed to maximize
on political support of tax cuts, additional
spending and aid to US states" in dire need
of rescue from an economic nightmare. The
plan is stated to add an additional 3 million jobs
into the economy, 35 billion dollars to stimulate
house spending and 11 billion dollars to reduce
the cost of buying a car. According to the Obama
plan, the stimulus package is projected to inject
75 billion dollars of stimulus into the economy
by getting money in the form of tax cuts and
direct spendings to the people who need it the
most. Some Republicans argued that the plan
was too costly and would increase the budget
deficit. In an early year press conference,
President Obama explained the urgency to pass
the stimulus plan by appealing to congress.
The commander in chief said, " If we do not act
boldly and swiftly a bad situation could become
dramatically worse." The economic stimulus
plan was the solution to avoid a depression
that economists were predicting could erupt if
measures were not taken to deter the current
recession. The country was at the highest
peak of unemployment since 2001. Consumer
spending and confidence had dropped to an
astronomical low, and Obama's economic
reform was outlined with measures of a quick
reaction to a long-term goal that is repositioning
the economy into a positive fold. Providing
the urgent need necessary to stimulate the
economy was needed in order to re-energize
the market. In the state of Missouri, the benefits
of the Stimulus plan are already taking shape
as the unemployment rate is decreasing and
more jobs are being created. As we enter into
the end of the year it is safe to say that the
forecast for the stimulus plan may have been
clouded with uncertainty and raindrops of doubt.
Now the remnants of bad economic weather and
thunderstorms of a recession are transforming
to brighter days.
illustration by eLizaBeTh waLwORTh
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If we do not act boldly and swiftly a bad
situation could become dramatically worse.