Economic Stimulus Update: How Much Has Been Spent on Bailouts?

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Tue, Feb 24 - 2:55 pm EDT | 8 years ago by
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    Every so often, CNN Money releases a handy visual showing how much money has been devoted to “economic stimulus” — starting from December 2007 when the hapless efforts to avoid recession began. I like to post it here. As you can see, so far more than $11 trillion has been promised for economic stimulus efforts. Kind of makes the recently passed $789 billion look pretty paltry. I’ve been saying it for months: Most of our economic stimulus spending is not being passed in large packages. Most of it is adding up with $100 million here and $1 billion there. Also, look who the biggest beneficiaries are. Ben Bernanke has been vowing to help the banks, and the government certainly has been throwing plenty of money at them.

    What do you think of these economic stimulus efforts, and where the money is going?

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      • http://onemint.com Manshu

        Although we have not seen a lot of discussion around TALF yet, I think that is the next thing to come under intense debate in the next few days.

      • http://www.yieldingwealth.com Miranda

        Unfortunately, I’m not sure how much public discussion any of this other stuff will be getting. How attention did most of the other economic stimulus measures get? Out of the $11 trillion spent, I think that there was only really public scrutiny of maybe $2 or $3 trillion.

      • Jim

        Numbers even more frightening than the proposed Obama budget. The two deficits added together are truly staggering. Almost beyond comprehension. I feel sorry for my kids and grandkids. Their future earnings have already been spent.

      • Miranda Marquit

        Oh yeah. Just the stuff spent before Obama came into office is staggering. And eclipses almost anything he’ll do going forward.

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      • Jan

        I’m just an ordinary Mom. But I know enough about keeping a family fed on one paycheck. Putting money aside for emergencies and trying to save save save.
        My thoughts about the bail outs… Every company that has received or expects to receive bail out money should be willing to:
        #1 Fire the current CEO he’s obviously not doing his job.
        #2 Stop all bonuses of any kind to anyone. If your company is in financial trouble no one could have been performing above and beyond.
        #3 Fine tune your salaried management, there’s a lot of wasted and double effort jobs that can be done without.
        #4 Instead of cutting your hourly workforce and shutting down production, have a manatory 2% pay cut across the board for everyone from the CEO to the lowest paid stock boy. I’d rather take a solid 2% cut in pay than lose my job or watch my neighbor lose his. And once the lay offs start possibly lose my job altogether because of closing the plant. I wonder how much money it would actually add up to with just a 2% cut in every employee at GM and I mean every employee. Multiply that savings by all the banks, financial institutions and companies that have already gotten bail out money… please.

      • Miranda Marquit

        Interesting proposals. I agree that once you accept public money, you can’t keep with “business as usual.” Although I’d probably do a 7% pay cut for CEOs and 2% for everyone else. After all, CEOs get disproportionate rewards during the good times; they should get bigger consequences during the bad times.

      • Jan

        Your idea of the extra 5% for the CEO’s would be that much more we could be saving… Nothing of what I stated is impossible or not doable. The problem is no one seems to want to take any responsibility. I recently offered to take a pay cut of 20% to help out the small company I work for. And believe me, I can use that 20%. My little salary will still be more than unemployment.
        Everyone that can keep a job, even at a salary reduction, not only saves the reduced salary, but they save all the unemployment benefits as well. Not to mention your dignity!

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      • Blake

        11.5 trillion.

        Ok, lets see, one thing that hurt the economy… Banks loaned out so much money and did have have sufficient reserves on hand, they lent out money to people who likely shouldn’t of got any or income was not good enough to pay back the high payments every month.

        So we give them MORE money and expect them to loan out money again, basically, the same thing they did before that caused this mess and to our surprise, well, the surprise of the government it seems, the banks of course didn’t do that. I don’t blame them.

        11.5 trillion…

        Ok, I think only two things would work, at least right away.

        1) and I think the best idea, take that 11.5 trillion, divide that between every taxpaying and working American or unemployed who lost there job and were laid off and give them that money. A rough guess I did (not completely accurate, just a guesstimate) is 11.5 trillion, divide by 225 million (over 225 million Americans over the age of 18, not all are working or trying to work of course, so number of those working or looking for jobs is smaller I am sure) comes to a little over $51,000 a person.

        Give each tax paying, working American or those who were working, lost there job, and are looking for a job that money. For a lot it’ll be more then they make in a year, they can use that for there own education costs or that of there kids, vacation, repairs on a house or car, buying a car, a big down payment on a house, pay bills, shopping spree, etc. all of which helps the economy, keeps money flowing and keeps people working. Maybe a problem would be people blowing a lot of the money or not spending it so the economy would see a good spike that would fall off in 6 months or so, then split it up into payments, like, say $500 or $1000 a month, it’s not one large sum but enough that people can use it to maybe pay some bills and spend a little on other things. Possibly allocate those payments to go straight to a new car payment every month, etc.

        If not, my 2nd idea…

        Start a huge federal funded public works program. Use that money to higher people who have lost jobs and are looking for jobs, give them training, send them out to fix, say, roads, at least here in Southern CA the roads are horrible, when that is done, find another project, all the while trying to help them find jobs outside the program. A problem I see is people wanting to stay in it forever, maybe set a timetable, they have 18 months max in the program and they get assistance to find a new job while in the program.

        Those are just my ideas. I am no expert and I am sure there are LOTS of holes in both my ideas but it’s something, I think both are at least better ideas then the government has.

      • Miranda Marquit

        The works project is included in the recent economic stimulus bill. I agree that it’s a good way to spend money. I think our priorities have been messed up. I like the idea of giving money to taxpayers and having them pay off their consumer debt and/or contribute to loan modification. Those who don’t have those issues could invest. That way, the effects of inflation are minimized, the banks clear off some of their bad assets and free up capital, and everyone gets in a better place.

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      • yoe moma

        Obama has surely stuck his foot in his mouth. What are we going to when the dollar collapses?

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      • Starlum

        11.5 trillion allocated to economic recovery. Economic recovery for whom? Washington has been given a hammer and now thinks everything is a nail!

        If this administration were serious about getting cash flowing, it would reset all consumer debt to 0, and let Americans benefit from a personal economic stimulus? Just think about the disposable income that could be returned to the hands of the taxpayers! At the flick of a few computer keys, debt canceled.

        I just read a financial report that estimated consumer debt at just over TWO trillion. The banks have gotten their haul and paid out big bonuses, let them take it on the cuff! They have a debt to pay, let them do it! Credit cards companies are crushing consumers. I have excellent credit, never late paying credit card payments, but I got sucker punched recently. I had ONE credit card with a low interest rate, and I was notified that the interest rate would almost double–not because I wasn’t paying the bill on time, but rather because it was no longer “profitable” at the interest rate I had. The only way I could keep the low interest rate to finish paying off the balance was to close the card. I did that, but wasn’t told that closing my card would lower my credit score by 75 points! I have never been late, so I can only imagine what is happening to those who are struggling without jobs and are losing their homes. This insanity must stop!

      • Pomona, CA

        It is really interesting that the government can allocated 11.5 trillion dollars in bailouts without making any difference in the economic situation. Let’s look at the causation of the current situation. The people who run these large corporations started some poor business practices and ran their companies into deep debt.

        I also find it disconcerting that our politicians cannot perform simple arithmetic operations. $11,5 trillion divided by 140 million taxpaying citizens = $82,000. If Joe Citizen were to receive $82,000, he would pay off all of his debt and would pump the surplus into the economy through purchases of new items.

        This would relieve the banking industry from their heavy debt burden. The auto makers would not be going bankrupt, etc., and the economic emergency that currently grips this country would simply disappear.

      • Al

        If the government had passed out $60,000.00 to EVERY person on the 2008 census over the age of 18 it would have spent a TOTAL of $13.8 trillion dollars. A little less than it has spent to date but what do you think the individual who got this $60,000.00 would have done with it?
        Put it in the banks? Spent some of it on “foolish” things? PAID their debts? Paid their mortgage?
        Where do you think our economy would be today had the government really been FOR THE PEOPLE!!!!!
        We nned to elect people who benefit you and me not JUST themselves and their friends!!!

      • http://ppfunder@gmail.com pattie pfunder

        Own everything you can.

        As an individual, own your home, your auto, and have no credit card debt.
        Contribute the maximum to your 401K plan.

        Check your 401K on a monthly basis.

        I’m a Conservative.

        If you own everything you have, the government loses!
        !!

      • Thom Barlow

        Over 11 Trillion earmarked & counting ! I heard some math wizard crunched the numbers and said “If they would give this Economic Stimulus money to American Homeowners instead of the “BANKS” to pay-off their mortgages… The Banks would still get a flood of money, those Tax-Payers who’ll end-up paying for this in the end will have gotten something in return…A mortgage-free home !” Just think how much more money the “Banks” will recieve when Homeowners are able to pay-off their Credit Card Debt or purchase American made New Cars because of the extra money they’ll have since they don’t pay mortgage payments each month ! Now that’s what I call an Economic Stimulus Package !

      • Aubrey Mason

        So……….

        If the government had done the “right thing” – and instead of giving all this money to the companies…. had given every taxpaying Adult in the US a large tax-free check, lets say $100,000, requiring the taxpaying adult to spend this check within a five year period of time (easily done, issue debit cards like unemployment insurance in several States… if the money sits there it goes away, require statements on your tax returns for those five years detailing what you spent it on) – in so doing, forcing the companies, banks etc to WORK for their income…. we would not have a recession and yet spent the same amount of money earmarked for these bailouts…. we would not have unemployment at these levels because people would be spending the money and employers would be hiring. And most important of all – the CITIZENS of this Nation would have benefited…. not the businesses.

        Yet, they did not do that.

        How many times have we heard recently of incidents where our government did not take action when they knew of issues, fraud etc? Take mr madoff as a prime example. The SEC knew about him for ten (10) years yet did nothing…. this only came out after he was arrested.
        The gentleman who was trying to tell the SEC of the fraud for ten years wrote a book, in a video this morning his advise? “Don’t trust your government”

        Where else have we heard similar statements made recently?

      • Alex

        Here is an idea……

        AN idea whose time has come…

        For too long we have been too complacent about the workings of Congress. Many citizens had no idea that members of Congress could retire with the same pay after only one term, that they didn’t pay into Social Security, that they specifically exempted themselves from many of the laws they have passed (such as being exempt from any fear of prosecution for sexual harassment) while ordinary citizens must live under those laws. The latest is to exempt themselves from the Healthcare Reform that is being considered…in all of its forms. Somehow, that doesn’t seem logical. We do not have an elite that is above the law. I truly don’t care if they are Democrat, Republican, Independent or whatever. The self-serving must stop. This is a good way to do that. It is an idea whose time has come.

        Have each person contact a minimum of Twenty people on their Address list, in turn ask each of those to do likewise.

        In three days, most people in The United States of America will have the message. This is one proposal that really should be passed around.

        Proposed 28th Amendment to the United States Constitution

        “Congress shall make no law that applies to the citizens of the United States that does not apply equally to the Senators and/or Representatives; and, Congress shall make no law that applies to the Senators and/or Representatives that does not apply equally to the citizens of the United States .”

        You are one of my 20!

        If you don’t have twenty, pass it on to whatever number you can.

      • Alex

        I have an IDEA!!!!
        What IF congress gave the “STIMULUS” money to THE PEOPLE!!!???
        What if congress said EVERY person in the US ( anywhere from 309 million to 350 million ) was given $60,000.00!!!! (TAXED at a one time only 10%)

        EVERYONE would get $54,000.00, what do you think people would do with this money??? OH,this comes out to be $18.54 trillion for 309 million of us and $21 trillion for 350 million of us. This is EVERY man woman and CHILD in the census.
        OK you say that is too much! Well again my numbers are just a ballpark, and there are anywhere from say 25% to 22% folks 18 and younger so…….let us NOT give them money……then the numbers come out to be $14.46 trillion and $16.38 trillion for the two population numbers.
        Now Uncle Sam gets his 10% ($1.44 to $1.64 to spend) the rest of us, over 18 get the $54,000.00.

        Thus far some $11.5 trillion has been alocated and $2.2 trillion spent.

        WHAT WOULD YOU DO with your $54,000.00????

        Thinks about it! Then tell your congress person and see what kind of response you get!!! Oh, they get $54,000.00 too!!! Unless they wantto EXEMPT themseleves like they did from the HEALTH CARE bill!!!!!

        Thanks for “listening”!
        Al

        • charles Isom

          Alex you are totally on the right track. My plan is a bit more conservative, I simply want to give the head of every household or indiviual filing a tax return, give that person 150,000 dollars. and I believe there would be several hundred billion left over. And yes we all would be buying new American cars, getting caught up on mortgage payments and starting new small businesses in every community all over America. And yes some businesses would fail, and they would deserve to fail. When you do not manage things correctly you go under. That is American capitalism . The democratic way for the love of Benjamin. This country has long been heading the wrong direction when you see that CEO’s and presidents of companies are being awarded these multi-million dollar bonuses , annually: yet that company is laying off workers on the ground level. When you have athletes and movie start getting paid tens of millions a year for what ? for having the time of your life playing a sport that millions of Americans do for fun everyday of every year in our parks and schools. And making movies, how is that paid more than someone who is out there on the front lines domestically and abroad, saving lives. Actually performing a physical service that restores a human life. America we must set things straight. There is not one person alive who deserves to earn one million dollars a year for anything. No one person’s performance or job deserves such an award.
          Yet we pay whatever the box-office wants us to pay, what ever theater wants , and now look. Our congress can not help the backbone of this country, the american worker , and now the unemployment extensions have run out. Watch what happens now. Families are going to suffer. there is not enough work out there to indicate the recession is past. There are some who have been on unemployment for more than two years, others only 6 months. yet all of it stops as of June 12, according to the EDD. What are we going to do? there is a silent majority of people in this country who can no longer remain silent. There amongst us is a great deal of talented individuals who can work together and pull this country back on to the economic recovery where we need to be. The folks we have allowed the electorate to put into office and make our decisions for us have failed. And it is our fault. mine I did it , I did not worry about getting out to every election with an educated opinion of who and what was on that ballot , and making an American choice and voting for what I believe in. I and the majority of Americans have really screwed up. We are suffering now, and we are going to suffer a great deal more in the very near future. But it can stop today. It must stop today. Before the other 9.3 trillion dollars is spent , we must make Washington put the money where it will actually stimulate our growth and this country and its people can enjoy the bounties this beautiful planet has to offer. This mis-allocation of wealth must be redirected globally and in this country as well. Wake up America we are being duped and it is happening to 300 million of us at the same time. Are we in fact intelligent?

        • Billy

          I totally agree with this, give the American people their money instead of giving to others and let us stimulate our economy.

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      • Jeffrey Lonewolf

        Wanna bail out the banks. give $700 billion to the people…the banks will get bailed out and the money wont vanish into thin air

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