What’s the buzz?
With the really, really bad economic situation in the United States, you only have two things to do. Either you do something or you do nothing. So today, they did something. The Democratic-controlled House approved the $819 billion stimulus package. Expectedly, the Republicans were unanimous in opposition.
DO NOTHING
For the do nothing, the argument is that:
“The economy is already poised to rebound on its own. They point to steep rate cuts by the Federal Reserve and trillions of dollars in loans and assistance approved by the government in the past year as enough stimulus to get the economy back on track. In addition, some stimulus skeptics believe that increased government spending will cause more problems than they solve.”
DO SOMETHING
For the do something, the argument is that:
- According to the Feds:
- According to President Obama:
“The U.S. economy is likely to deteriorate further this year and unemployment will rise into 2010, according to the latest forecasts from the staff of the Federal Reserve. This bleak forecast was presented to Fed policymakers when they met last month and lowered interest rates to near zero. Low interest rates are one key tool the central bank uses to try to spur economic activity.”
“For every day we wait or point fingers or drag our feet, more Americans will lose their jobs. I don’t believe it’s too late to change course, but it will be if we don’t take dramatic action as soon as possible. If nothing is done, this recession could linger for years.”
Creates job abroad, not in the US
There is fear that, this stimulus package creates job abroad and not in the United States. Why? Because the package includes a variety of public infrastructure projects, including rebuilding crumbling roads, bridges and schools. These projects will spur new demand for fabricated building materials, and potential opportunities for out-of-work mill and factory workers to get back on the job. But you see, many materials for highway construction, namely steel, are produced cheaply in foreign countries, and contractors have an incentive to buy the most efficient and inexpensive materials for their projects.
What’s in this package?
- $544 billion in federal spending, money for traditional job-creating programs such as highway construction and mass transit projects.
- $275 billion in tax cuts for individuals and businesses.
- Measure tickets far more for designed to aid victims of the worst economic downturn since the Great Depression of the 1930s like unemployment benefits, health care and food stamp increases
- Tens of billions of additional dollars would go to the states, which confront the prospect of deep budget cuts of their own. That money marks an attempt to ease the recession’s impact on schools and law enforcement.
- Funding for housing weatherization and other provisions creating jobs that can reduce the nation’s dependence on foreign oil.
Centerpiece tax cut
- $500 break for single workers and
- $1,000 for couples, including those who don’t earn enough to owe federal income taxes.
Next stop? Senate for deliberations.
References:
- House passes stimulus plan, but with no Republican votes
- Stimulus 101: What’s in the bills
- The case for doing nothing
- Stimulus may spur jobs – abroad
- Fed predicts economy will get worse
- Bailout rage divides the GOP
- Crisis and plan to fix it ‘unprecedented‘
- Mass layoffs surge in 2008, continue at rapid pace
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{ 4 comments… read them below or add one }
ay, maraming airline tickets din yan, tsaka 5 star hotel bills! tira lang ng tira, makapagpasikat lang, ooooopppssss, my bad!
roni´s last blog post..horsepower
[Reply]
Ako, mas kampante ako na Obama can pull this off kaysa sa bailout nina George Bush and Henry Paulson last time. Hindi na nalaman ng mga Americans kung san napunta yung pera – yun pala yung akala nilang mag-bailout sa kanila mismo e napunta sa mga manyabang at dickhead na corporate people! (take that GM, Chrysler, Ford, Citigroup and chorva! Mga chukchak chenes kayo!)
However, ang pinaka-labanan na lang eh sana maging mas transparent ang Obama administration sa pag-gastos ng malaking pera na yan. Inform nila ang mga tao kung saan na napupunta na ang pera nila. Dapat may financial report chorva!
Dito naman sa pinas, yung 12Billion ng SSS contributions e dinayvert na to the economic stimulus chorva nila – with matching alingasngas na ibailout din ang mga preneed – which is very, very, shitty idea kasi in the first place, kung ano ang naging problema ng pre-need ngayon, e problema na nila yun! Hindi naman lahat ng pilipino e may pre-need eh, so why bail them out???
Felipe Neri said in an article from GMA news:
Neri said the SSS’ plans include “investing” in infrastructure projects like the extension of the Cavite Coastal Road, and the connection between Metro Rail Transit and Light Rail Transit.
“Siguro bago sila magbatikos magaral muna sila gumawa sila ng homework nila (Our critics should do their homework before making criticisms). They are deceiving the people with all their claims and criticisms. There’s just too much suspicion and so much distrust,” he said.
Dapat unawaan para makabigay tayo ng benepisyo, kailangan kumita rin ang pondo. Saan ilalagay ang pondo, ilalagay ba natin sa baul na walang kita (People should understand that for benefits to bear fruit, the pension funds have to grow. Do you think it will grow if we just keep it under the bed or under the pillow)?” he said.
http://www.gmanews.tv/story/146418/Neri-blasts-critics-of-SSS-contribution-to-stimulus-fund
[Reply]
reynz Reply:
January 29th, 2009 at 6:42 pm
I totally agree dun sa statement mo about the pre-need companies. Walang kinalaman ang gobyerno dun, bat sila ibe-bail-out?
Pre-need is like loaning money from people and for them to earn money, they will invest them or buy companies. Eh kung palpak ang investing decisions nila, labas na tayo dun. Pabayaan silang mabang-krap.
I still have to read this SSS chorva para manliwanagan ako.
reynz´s last blog post..Remittance scam: a warning to Overseas Filipinos
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ang mga republican, pinahihirapan si Obama para bang pag pinahirapan si Obama, hindi ang US ang maapektuhan.
ang stimulus ni obama ay target more on the people with low income samantalang yong kay bush ay yong mga hinayupak na malalaking corporation na ginamit naman sa mga bonuses ng mga execs at pagbili ng eruplano. Sheesh.
The Ca t´s last blog post..The Manny Pacquiaos in Congresses
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reynz Reply:
January 29th, 2009 at 6:40 pm
nobody even remembered the stimulus checks we received before xmas hahaha natandaan mo yon? i received a whopping $22 from bush sa lecheng stimulus na yon, ni hindi ko na inin-cash sa laki hahaha
reynz´s last blog post..Remittance scam: a warning to Overseas Filipinos
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Let me understand the stimulus. We got ourselves (America) into this crisis by spending and borrowing too much money we didn’t have… now, we are going to get out of it by borrowing and spending another 1 1/2 trillion? I don’t see the logic.
Curtis http://curtischambers.blogspot.com/
Curtis Chambers´s last blog post..Suicides of Soldiers Reach High of Nearly 3 Decades
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