Will the stimulus REALLY do anything?
August 17th, 2010 | 
Author: Orchideye asked:
I really hope this bill doesn’t send the country down the drain but it seems like it will. How can this bill really do anything? WHAT will it do? I need facts, I could care less what your political affiliation is. How will it do these things? Will it solve things? Will it allow possible solutions? Will it really create jobs?
I see yes and no coming from the media and I’d like to just get the good old facts on what this bill will do and whether it really is a wise decision. Is our country going to come out of the economic turndown or will we just end up with more debt than we started with? I have basic overview of macroeconomics, but it would help with more info. Thanks.
debt solutions
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Hard to tell but so far the bailouts sure haven’t worked. The banks are still not lending money, in fact, they are buying up other financial institutions. The auto manufacturer’s are laying off workers, offering early retirement and closing plants. In my state, CA, unemployment just went from 8-over 9% in less than a month. Due to our legislature’s mismanagement of funds our budget crisis has only worsened since the end of last year and the budget they just passed last night is a nightmare for the middle class. Even if we save every dime of the $13 we get from the fed stimulus every month for the entire year, we will now owe the state of CA an additional $200. I think the aid to states may help initially to save jobs, particularly in my state as the governator suspended all construction projects that were underway last week. And, if they didn’t pass their 14 billion dollar tax hiking budget last night, teachers, health care workers, police and fire personnel would all have been out of a job today as the state officially would have become insolvent. At least some of the infrastructure projects in the fed stimulus will provide jobs to some of the thousands of auto workers who were just laid off, but I doubt those who worked in the financial institutions will apply. We definitely will end up with more than the 1.2 trillion dollar debt than we started with, but the question is who is going to pay for all of this? Right now, in the state of California, the answer is the middle class, those who are still working and paying their mortgages and those who can least afford it.
debt solutions
If you go to stimuluswatch.org, it shows how many jobs each thing in the stimulus will create. Once those jobs are done, then what? There will be some community improvements – not real sure aside from jobs, how that will stimulate the economy. Yes there will be a check to tax payers, that will be a short term fix that most people will use to purchase that much wanted flat screen, then they will be in the same boat they are now. There is the first time buyers incentive, that again is short term.
If the government truly wants to stimulate the economy, they could have put payroll taxes on hold. This would have given American families more money and would give American employers more money because they would not have to match the payroll deductions. We would have gone to the stores, spent our money, increased demand for goods which would allow companies to step up production and hire people and the cycle would continue. It probably would have cost less to have done that for a short period of time than the stimulus package.
I do not see how it will solve things in the long term. I don’t understand how spending $99,000 on doorbells will help anything in the long term.
debt solutions
We will all have to wait and see. No one should expect this thing to turn around in a day or two.