Monday, February 2, 2009

Obama's Economic Stimulus Package

I don't think President Obama's Economic Stimulus Plan is going to work out the way a lot of average Americans think it will. (For a break-down in simple terms of what the Economic Stimulus Plan means, click here.) From what I gather, there is a lot of confusion surrounding the plan itself. This plan has nothing to do with bailing out banks or car companies or any other major industries, for once. Some of the proposals within the plan would help out industry, but it's not an all-out bail-out. The American people aren't getting their own bail-out here. These trillions of dollars aren't going to land in our pockets overnight.

However, President Obama is doing all the government can do to help our ailing economy. If the Economic Stimulus Plan passes, it will bring about a slow turn-around in our economy if all goes as planned. My doubt falls along this line. I don't think it will work out as planned. I think projects will get started and people will realize more money needs to be had to finish these projects. Sure, there's always room for improvement, especially when it comes to our infrastructure, so I can see this going one of two ways. Either not enough gets done, in the view of the average American, or everything they had hoped for will get done, but it will end up costing too much.

Basically, you could compare this package to FDR's New Deal. If you really read into the New Deal, you'll see it didn't end up doing a whole lot for the economy outright. It improved moralle. That's what was needed then, and that's what's needed now. Sure, eventually after the Great Depression the economy straightened itself out, and I don't doubt that eventually things will get straightened out again. But President Obama's Economic Stimulus Plan is not the cure for the economy.

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