Is it Time for a New Stimulus?

Is it time for a new economic stimulus from the Fed? A popular opinion creeping up seems to think so. Many claim the first stimulus did not do enough for the common American, as national unemployment creeps toward 10% and new data claims 20% of homeowners are under water in their mortgages.

While most agree they are tired of the current economic climate, what many don't realize is government programs cannot work miracles overnight. Only 56.3 billion dollars of the 499 billion allocated have been spent. Only 157.8 billion dollars of the 499 billion are available for spending. By this math, one-third of the available funds have already been spent. Approximately one-third of funds allocated toward the economic stimulus are currently available for spending.

What, then, is the answer? Some leading economists, and even the Fed itself, claim the answer is to be patient. While this seems like a slap in the face to many Americans who are currently jobless and getting foreclosed on, the only other alternative would, of coarse, be to initiate another stimulus package. American taxpayers are already allocated to be the ones picking up the tab for the first stimulus. If a second stimulus is undertaken, this would mean, quite simply, more taxes for Americans to pay later.

What is your opinion regarding this issue? Should Americans receive another economic stimulus?

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.