Who supports Barack Obama’s economic stimulus plan?
Democrats support the stimulus plan, while Republics disapprove. Although, some Republicans support the plan. Moderate Replubicans and Democrats went to debate before the plan was finalized. Democrats are disappointed that the bill isn’t larger. Three Senate Republicans voted in favor of the plan reported The Christian Science Monitor.
Where is the money going?
Out of the $789 billion stimulus plan, $507 billion will go towards increasing spending and $282 billion will go towards tax relief, according to The New York Times February 11. The plan was passed Friday at $787. “The recovery package has tax breaks for families that send a child to college, purchase a new car, buy a first home or make the ones they own more energy efficient,” reported The Associated Press. The plan will go towards many other things like highways and health care.
Where is the money coming from?
The money is coming from borrowing, and it could be years before the debts are paid off. The thing is that this money might not be enough, according to Bloomberg.com.
Will the plan actually boost consumer spending and the job market?
The BBC reports, the plan is supposed to, “help states close their budget gaps and avoid laying off state employees.” The idea is the plan will rescue the strain on consumers when they spend money. The Boston Globe reported there is no guarantee the money will smoothly flow into the economy. The bottom line is that it “will not be easy” and could take years to see any results, according to ABC News.
How does this compare to the past?
People won’t be getting their money in the form of rebate checks, unlike during the Bush Administration. Reuters made the comparison the stimulus plan is “slightly larger” than the Marshall Plan. MSNBC.com reported the 2001 tax-cut package was $1.35 trillion, and was approved by 12 Senate Democrats and 28 House Democrats.
Last updated February 15, 2009.