What Do I Think About the Economic Stimulus Plan From Barack Obama?
January 5, 2009 by Miranda Marquit
Filed under Finance
I was asked about what I think about the economic stimulus plan that Barack Obama laid out in his weekly address over the weekend. Here is the address:
Some of the things I like about Barack Obama include his quiet confidence and his talk of unity. I also like how he lays out the problem, and talks about a solution. I’m seriously hoping that the vast amounts of money that he plans to spend on economic stimulus will be more than just throwing money at the problem. And it certainly sounds like President-elect Obama means to try to make thoughtful, useful expenditures. He focuses on:
- Infrastructure.
- Health care reform.
- Renewable energy.
- Tax cuts.
My favorite points are infrastructure and renewable energy. Investing in these items will actually help us prepare for the future, as well as put people to work and give them a chance to help stymie the foreclosure problem. I like the idea of actually investing in our infrastructure and developing renewable energy. These are vital elements to our national security, as well as our economic vitality.
Tax cuts are nice, and I am glad that they are expected to be aimed at helping the middle class. It’s more of a “trickle up” approach that will hopefully work better than the “trickle down” approach that has been dominating so far. It would be nice, though, if our leaders, rather than trying to encourage us to spend the money, would advise us to pay off credit card debt and make wise investments, rather than engaging in another round of consumer spending. And, of course, I don’t think that Obama’s health care reform goes far enough.
At any rate, the address was reasonably encouraging overall. But we’ll have to wait until later this month, when the pork starts being inserted into the economic stimulus bill and battles erupt as the new administration comes in.
What do you think of the economic stimulus plan laid out by Barack Obama?
Tax cuts are appealing in theory, but it’s not always clear that the additional economic output will outweigh the lost tax revenue.
Could lead to bigger debts.
I have to agree. They are nice, but how effective will they truly be? Especially when combined with massive amounts of government spending…
Tax cuts can put money quickly to taxpayers but I don’t know if it will help in the long term. Too bad the government can’t get creative and offer better loan terms or car financing for individuals, considering the US government now owns a stake in car manufacturing and freddie mac. I personally would love to see 4% 30 year fixed rates. This would help put more money in my pocket and other americans.
Tax cuts can give a quick shot in the arm, but long term it doesn’t do much, I don’t think. At any rate, it doesn’t address some of the underlying issues.
The government was a co-conspirator and major player in causing this mess so I have no hope or belief that it will do anything but delay a recovery, regardless of what fiscal or monetary policies it adopts. Until consumer confidence returns, nothing will work.
What kind of consumer confidence, though? More debt spending? Or a different kind that involves more disciplined choices? Personally, I don’t think the mess will truly be fixed until we have an overhaul of the way things currently run. Also, I think that we need to offer more than just consumption (start exporting something — technology, goods, whatever), as well as accept that there will be some ups and downs and stop trying to force unsustainable growth. Unfortunately, a complete overhaul probably isn’t feasible, since it would be too politically risky, and most Americans would consider it too slow to take effect. No one thinks long-term, which is part of the reason we’re where we are at.
I’ve never quite understood how this works either. Cash in my pocket it great, but the government doesn’t live on a budget. They’re just printing money and borrowing it themselves.
So true, Magali! And that is part of what is leading to inflation (the devaluation of the dollar), as well as continuing this state of economic instability.
Obama’s planned economic stimulus gives hope but it remains to be seen how quick that is going to steady the slump. When analyzing the current economic chaos, open discussions and participatory forums play their part in providing insight and workable solutions. I saw a similar idea here http://www.thresheronline.com/ that promises to contribute much.
Thanks for sharing, William! There are some good points to the stimulus, but, unfortunately, it still does a lot more for big corporations than it does for regular folks.