Obama stimulus AND economic recovery plan

Jan 2013
316
Delaware
So Obama now has two separate plans for fixing our economy. An $819 billion dollar stimulus package and Geithner is working on a new plan (new details to be released later, cost unknown as of yet).

Where in the world is this money coming from? After the first stimulus and after learning that billions from the failed bailout plan went to CEO bonuses, what's next?
 
Jan 2009
118
I wouldn't be surprised if this unknown plan involves jacking up the nation's debt and stealing tax payer money so that the CEOs can continue to live well while the rest the working and lower class struggle to survive.
 
Jan 2009
639
It might actually go the other way. Someone in his organization was pushing for a really low cap on wages.

They are really starting to stretch themselves too thin though. This and the "Bad Bank" plan is really going to cost a lot of money. The problem is also going to be that they are starting to contradict each others goals.

We shouldn't jump to conclusions too soon though. I guess I'll wait.

I wouldn't judge the bonuses to harshly either. A lot of those were guaranteed by contracts and bonuses are down 40% from the year before. A little more oversight in the handling of the money would be nice though.
 
Jan 2009
140
From everything im reading, analysts feel that the stimulus is still too small and we will need something along the scales of 2 to 3 trillion dollars to cause a wave.
 

myp

Jan 2009
5,841
The stimulus is way too big and really it will only hurt us in the long run. This is because it taxes the successful parts of the market in order to subsidize the poorer parts, not to mention the immense debt it is creating for our children. They say it is for the long run, but really it is a very short-sighted plan because eventually the market troubles will have to sort themselves out and people will have to struggle. Postponing it only adds more bubbles and a worse crisis later on.
 
Mar 2009
10
I think the money is way too huge, it comes from taxes and all those incomes, but don't forget USA is a very rich country, it provides alot of things and millions of people would like to live in the USA.
 
Jan 2009
639
I actually am pretty worried now. Obama had some plans for huge taxes in 2010, which would sorta shot our recovering economy in the foot. That was apparently how he actually planned to cut the deficit in half. He's still probably going to be way short though, since their estimates are running off a ridiculously optimistic projection (3% growth GDP in a year).
 
Mar 2009
159
North Carolina
I really don't think the idea of the Stimulus works (which didn't stop me last time from buying a new Computer ^.~). I don't think spending more money when we have no money to begin with makes sense. BUT I've never been great with economics and hardly an expert at such things. Somehow I think that since we have no money, that's because we're constantly spending our wealth and everything under the sun. Recently I read a report that said that the cost to make Solar Panels is more than what one would normally spend on just using electricity to begin with. So I believe things like this is the reason why we're in trouble. It also doesn't help that Congress will throw in golden toilets on a bill about Wildlife Conservation (sarcasm folks). We where the richest nation in the world, and spend like if a Trailer Park Occupant who won the Lottery. No, our dog doesn't need a Kashmir sweater, and we don't need a can opener that can fold the laundry. I think that spending led up to were we are now and spending more can't be the solution.

But what do I know? That's just my opinion.
 
Jan 2009
639
Well, the plan for a stimulus should work well enough. It's more of a cushion in practice than a savior, but it does help get some new money flowing in the economy and it keeps us from getting into a nasty deflation cycle.

The idea comes from basic Keynesian ideas. The government saves up in times of wealth and spends said wealth to pull us out of a recession. The government usually has a nice multiplier effect, since they have the power to put money right into the hands of consumers to allow them to start spending and get more money flowing.

The problem with this stimulus is that it's a pointless spending bill that Obama really wanted. Most of the spending doesn't kick in a for a year or so, which makes it worthless as a stimulus. It won't really help or hurt the economy on the whole. It will create some construction jobs and cushion the hurt for some, but the increased taxes on the way will hurt later on. Our deficit is just getting to be too big to handle, and it's really gonna hurt when we start to call it in.