Can Obama's Administration Revive The U.S. Economy?

[Kolombo]

US President Barack Obama says he is confident his $825bn (£576bn) economic recovery plan, which could save jobs, will be passed by Congress. Proposals include tax credits for firms that create jobs, tax cuts for 95% of American workers and extended unemployment benefits. The president has pledged the plan will save or create three to four million jobs over the next few years.

The stimulus package also includes:

* More than 3,000 miles of new electricity transmission lines would be laid down to improve the US power network
* 75% of public sector buildings would be made more energy-efficient, saving taxpayers $2bn a year
* More than 2.5m homes would be "weatherized" (made more energy efficient)
* Funds would be made available to improve or renovate 10,000 schools

http://news.bbc.co.uk/2/hi/americas/7856589.stm

Can the stimulus give the economy the jump-start it needs?

Discuss.

[FAH1223]

I don't know... its a roll of a dice.. but atleast it isn't just rebate checks like Bush proposed last year

probably long term it will really have an impact

[surrender]

i think Obama will fail (i hope NOT) in he's campaign as the good guy who's un-doing what the republican did!

in two section: either the economy will collapse, or west v middlse east issue. especially in Gaza and Israel issue!!

[Voltage]

Kolombo, it is really a big guess. The thing is if this doesn't work, the world as we know is really going to change. That's for sure

[Kolombo]

The Obama administration's stimulus is following the same route as that of FDR's "New Deal" Just like FDR called for big spending on government infrastructure, boost to unemployment and social programs, Obama's stimulus aims to do the same.

$275 billion of the stimulus is going to unemployment, medicaid, food stamp, unemployment and rebate checks for individuals earning enough to pay payroll taxes, but not income taxes. That is a good % of the population. 95% of Americans also expect to get some sort of a tax break, including individuals earning over $75k a year.

The biggest chunk of the stimulus will go towards infrastructure, education, health, state administrations, energy, science, etc. All with the aim of creating or putting a stop to the steep job losses we're seeing today.

FDR was successful in bringing back the U.S. economy from the great depression in the 30s. I have a feeling Obama's stimulus will have the ability to revive the economy in one way or another. The house are voting on the stimulus now, will keep you all updated.

[AbdiWahab252]

Kolombo,

I am highly doubtful it will work as well as Obama is hoping:

1. Massive infrastructure - What is defined as infrastructure in this plan ? So far we hear about power grids, broadband etc. FDR's package focused on civil projects like roads, highways, bridges, all of which were LABOR intensive, folks dug trenches . Now days infrastructure projects are not as labor intensive.

2. Not enough tax breaks - The Republicans got it right about giving tax breaks. Obama should up the portion from the 30 something of the package to nearly 50%. Giving more unemployment benefits, boosting AFDC (food stamp) payments and other benefits that we know people who are on them are most likely going to spend it.

3. Toxic debt - Obama should lean hard on the banks and force them to write down the mortgages which would free up much needed cash of people struggling to pay their mortgages.

4. Accountability - I am very suspicious of how the federal government spends money with little accountability. If we look a the various TARP plans, we can see that the Banks whom were supposed to lend the $$ are not doing so. How can we trust that the government will ensure value for the taxpayer in the stimulus projects ?




This massive stimulus package is going to also come at a steep cost later on down the road: higher taxes, devaluation of the $$, and higher interest rates.

But I hope Obama gets it right @

[Kolombo]

Stimulus passed without a single republican voting for it.

244-Yes
188-Nay

Looks like its headed to the Senate next week.

[Niya]

Maybe. I don't get how the economy got into this mess in the first place. Lack of oversight,irresponsible use of credit, habit of living beyong one's means, CORRUPTION of corporatate proportions and plain sleeping at the wheel ala Greenspan ilk!

[Cawar]

If the economic experts and the noble prize winners cant figure out whether this stimulus package will succeed or not..how can we claim to know anything of this magnitude's outcome??

It will most likely succeed at least in perception..but it will also depend on other factors..which I dont know anyhting about.lol

The Republicans he courted all week long while ignoring the democrats..voted against the bail out ...all of them. Mac sokor dheh..now he knows how Washignton works.

[Kolombo]

The Republicans he courted all week long while ignoring the democrats..voted against the bail out ...all of them. Mac sokor dheh..now he knows how Washignton works.

The republicans still want to continue the Rageanomics of the past 8 years. Tax breaks for corporations, tax breaks for individuals earning over $200k, tax cuts for big business, etc. More of the usual. Less spending on essential infrastructure, more breaks for the top 2% of the population. But then, that shouldn't come as a surprise, because that has always been the core value of the republican party; elitist agenda.

[ahmed_gurey]

watch as an economist i predict the worst is yet to come, by next year the GDP growth rate of china and india is expected to half ..imagine the reppercussion's......the world economy is gonna come crushing down, capitalism is in grave danger

[Kolombo]

At first, it will trickle into paychecks in small, barely perceptible amounts: perhaps $12 or $13 a week for many American workers, in the form of lower tax withholding. For the growing ranks of the unemployed, it will be more noticeable: benefit checks due to stop will keep coming, along with an extra $25 a week.

At the grocery store, a family of four on food stamps could find up to $79 more a month on their government-issued debit card.

And far bigger sums will appear, courtesy of Washington, on budget ledgers in state capitals nationwide: billions of dollars for health care, schools and public works.

http://www.nytimes.com/2009/01/29/us/po ... ml?_r=1&em