Researching and assessing the Stimulus Package
In order to facilitate in-depth exploration of the provisions for GDP spending (and, hopefully, economic recovery) outlined President Obama’s 2009 stimulus package, please actively examine the following resources and complete steps 1-4:
1) Article : "This isn't your run of the mill recession"
http://edition.cnn.com/2009/POLITICS/02/09/obama.news.conference/index.html#cnnSTCOther1
2) Breakdown of GDP spending as proposed in the plan (chart):
http://edition.cnn.com/2009/POLITICS/02/09/obama.news.conference/index.html#cnnSTCOther2
3) Read an article regarding ONE of the topics outlined below
Education http://blogs.harvardbusiness.org/on-innovation/2009/02/obamas-education-stimulus-isnt.html And/ or
http://www.eschoolnews.com/news/top-news/?i=57333
Energy and the Environment http://www.latimes.com/business/la-fi-stimulus-green18-2009feb18,0,5194715.story
Transportation and public works http://www.forbes.com/feeds/ap/2009/03/06/ap6135687.html
Taxes ( you only have to read one, but are ENCOURAGED to read both articles)
citizens - http://www.cbsnews.com/stories/2009/02/16/personalfinance/main4804729.shtml?source=RSS&attr=_4804729
OR
businesses- http://online.wsj.com/article/SB123630457644747709.html
Health care - http://www.cjr.org/campaign_desk/what_the_stimulus_package_hold.php
Employment: http://www.cnn.com/2009/POLITICS/03/06/obama.stimulus/
Poverty relief
http://uspoverty.change.org/blog/view/taking_stock_of_obamas_stimulus_package_part_i
4) Share your observations on the Stimulus Package overall and the specific component of GDP spending that you read about in the third source.
* Explain the positive and negative aspects of these plans and provide your insight on what economic reforms would be wise to improve conditions in this aspect of the US economy.
* Is this a keynesan or classical solution to the current economic crisis? Explain your answer.
5) post a discussion question for further exploration in class - we'll be debating these issues later on this week.
Reminder: all work for this MP is due Thursday, October 15. This blog is due Wednesday October 14. Minimum of 250 words.
what is this?!
ReplyDeletejackie king.
the last blog of the marking period jackie!
ReplyDeleteAs a Recovery and Reinvestment Act, the stimulus package proposed by President Obama is meant to aid the nation in this economic downturn. Based on the articles I read, I learned a lot of informational facts about the stimulus bill both positives and negatives that comes along with it. The first thing that I noticed was the cost of the entire bill, which is said to be between 700 billion to almost a trillion dollars, which the president plans on spending in different aspect of society, such as cutting federal income taxes, funding education and health-care, investments in environmental energy, raising unemployment benefits and providing social welfare for those in need. The one article I chose to pay more attention to out of the six was on "poverty relief". This seems to be an aspect in which the president plans on making a huge impact on, by protecting the financially trobuled families and providing assistance in order to stimulate the economy. There are some advantages and quite a few disadvantages that will definately reflect on the national economy. The bill provides domestic aid and relief to the needy, such as increasing foodstamps, funding proper medicaid coverage, among many other reasons. The downside to this is that the more money the president spends on poverty relief and other fields, the more deficit is placed on country, which might ultimately will lead to increase of tax. Eventhough the president sets aside a substantial amount of money for poverty relief, it is up to individual states to decide how exactly they want to spend their money within reasonable budget requirements, which might lead to some social program redcution during economic downturns like the country is facing presently, this means the president's vision for providing poverty recovery wouldn't go totally acoording to plan. The poverty relief seems to be a classical solution to the current economic crisis because it is a portion of the stimulus package and budgets are created by different states to prevent unnecessary spending. My question is regardless if the stimulus package works out or not, would the money being spent have a positive impact on improving the lives of those in poverty?
ReplyDeleteOla Afolabi
F-block
After reading CNN’s “Obama: This isn't your 'run-of-the-mill recession'”, I began to understand the whole deal with Obama and the economic recession. From what President Obama was saying, the $838 billion stimulus plan will open up about four million job opportunities for the unemployed American citizens. This will provide a motivation the economy is in desperate need at the moment. Curt Woodward stated in his transportation article that Governor Chris Gregoire’s sanction for $340 million is going to be taken into consideration for highway and public works projects mostly. “When you see those slowdowns out there, and the congestion from that construction, remember: That's jobs in Washington". That was very negative. A little bit of traffic never hurt somebody, especially is there are going to be an opening of job opportunities for Americans, more safety policies, and stabilizing the economy from another boom. The economy should not rely on the government for everything. Although, there are time when the government needs to step up and help out our country. $838 billion will be another large debt that the United States has to repay sometime in the near future, but with the regulation of the economy, there should be no problems with repaying the debts back. Obama’s stimulus package seems to reflect a Keynesian economy with the way the economy is today. According to Keynesian economics, the economy is affected by fluctuations through it different components. Some of the components include consumption, investment, imports/exports, and government spending. Obama has ideas of using spending money that the government does not have to create more jobs. This will lead to more investment opportunities and production of consumer products for imports and exports.
ReplyDeleteQuestion: Will Obama have any other plans to help the economy pull out of the recession?
Dana Pistilli
C-Block
The stimulus plan is a plan that is looking to help people out of the economics issues to recovery. When it comes to education the article states that it is easier to charge education then change it which is an outrage. We are in a ressetion as it is and if people are going to charge more for children to get an education then how are we suppose to learn without affording it. Yet the stimulus plan will increase funding for school moderniation projects. The government funds internet access to schools yet alot of schools still dont have the resource. Instead of spending on internet why not spend on schools that are poor and help those that need it. Which is basically all schools now. There spending so much on things that we really dont need and we are still in the same situation only getting poorer.
ReplyDeleteWhy do we insist on spending on things we dont need?
ReplyDeleteThe stimulus bill is meant to aid people during this recession. Proposed by President Obama the stimulus bill is supposed to be $838 billion dollars used to help the millions of unemployed,health care, and education. The article "Poverty Relief" details how Obama plans to make a major impact on during this economic turmoil. The stimulus bill plans to include funding for more food stamps and proper funding for medicaid. However with all advantages come disadvantages. The United States is in a multi-trillion dollar deficit, so an increase in spending can lead to an increase in taxes, which means in the long-run you and I will be paying a larger amount of taxes to finally bring the nation back to stabilization. The approach Obama has is classical because he believes without government intervention the problem cannot be fixed. My question is instead of just handing the poor and needy more foodstamps and giving the unemployed money for not doing anything, why not set up public works projects that can benefit the environment and have these people working for the taxpayers money?
ReplyDeleteObama has a lot of confidence in his new plans since his speeches state that the stimulus plan will help re organize everything in the economy, including schools. The stimulus plan will provide funds to school and the Federal Reserve System will give schools the access to technology. according to president Obama. Also, he is hoping to decrease the number of unemployment by a lot in the next few years. “More than 3.3 million jobs have been lost over the past six months. Obama signed the stimulus package into law February 17. The Congressional Budget Office has estimated that the plan will create between 1 million and 3 million jobs.” The public is depending majorly upon this quote from what is happening today. My question is instead of just handing out money, why can’t Obama create jobs in every field for those who need jobs? More jobs mean more employment; more employment means more taxes will be paid. If taxes were reduces and jobs were available, the economy would stable itself since everyone will be contributing a small amount of taxes.
ReplyDeleteObama: This isn't your 'run-of-the-mill recession' is all about his stimulus plan, which he hopes to be long term. This article helps me to understand many aspects of the stimulus plan. He is not only focused on one aspect that is failing in the economy, but he recognizes them all. One thing that remains prominent in every recession is job loss. Whenever the economy losses a lot of money at one time it’s because the drop in business, and when business fails unemployment increases. The fact that people lose jobs makes the economy even worse, but no one can help it because it’s like a train reaction. The article quotes Obama saying, “My bottom line is to make sure that we are saving or creating 4 million jobs.... ” Although I’ve noticed Obama does focus a lot on education he also does focus on the depletion of jobs. The only negative thing about the stimulus plan helping the unemployed is that it will cause a lot of money; in fact, around $787 billion. This doesn’t leave much money for the other aspects of the stimulus plan, and there can’t be jobs unless there are businesses saved to give people the jobs. There were many people who lost their jobs, and if they didn’t loose their jobs than it’s nearly impossible for them to find a job. For example the New York Department of Education put a hiring freeze on teachers, so now no new teachers can be hired until the DOE says otherwise. It is very hard for some people because they are loosing money, which is why the economy is failing.
ReplyDeletePresident Obama is stressing to pass his $838 billion stimulus plan guaranteeing to help pull the US economy in its current down fall.Obama says that he is trying his hardest to help create more jobs and to make sure the financial system is working again and that home owners are getting some relief.Obama is trying to fix many problems in the economy today but he is focusing on job loss mostly.the main reason obama is focusing on job loss is because with no jobs there is no business and with out business there is no money being made.so unemployment has become a very big issue that is needed to be addressed."more than 3.3 million jobs have been lost in the passed six months"with this happening Obama signed a stimulus package into law that will create between 1 million and 3 million jobs.
ReplyDeletesamantha wong
c block
Obama’s stimulus plan is his take on how to fix the not “run of the mill recession.” He plans to spend $834 billion dollars in attempt to stabilize the economic crisis at hand. The ultimate goal of this amount of government spending is to help homeowners and save millions of jobs. Obama’s plan is an example of Keynesian economics because he is investing money in order to break the “vicious cycle.” Congress must not hesitate to act upon investing to help. The House of Representatives are investing $90.5 billion toward health, education, and jobs. The House is mostly focused on schools, labor, health care, while the Senate chooses to devote their most attention to environmental and energy. The Senate is investing $98 billion to fund the research of greener energy and create a better environment. Obama’s administration expects alternate energy production to be twice than its current state. That greener energy will become more important in the coming years because of the fluctuation prices of oil and the US’s reliance on foreign oil. As a result of the investments toward alternate energy, developments of green transportation and renewable energy are being conceived. For example, $8 billion dollars are for developing “new high speed rail systems”. Also, $4.5 billion are situated for federal buildings receiving energy upgrades. In addition, another $4.5 billion are for improving the nation’s unstable energy grid. The positive prospect to this amount of investing and interest is beneficial to modernizing our nation into a better, stable, environment. However, this amount of government spending can also put the United States in increased national debt.
ReplyDeleteWould it take the US a short or prolonged amount of time to be able to pay off the national debt if Obama’s stimulus plan works?
Allison Lee
F Block
The stimulus plan was created and implemented to fluctuate the U.S economy. President Obama focused in on key strong points to help better the economic crisis; Health care, Taxes, and Trade. The plan acted like water being poured into a dry empty glass, the water being the money and the glass being the U.S economy. In an attempt to fluctuate the economy 834 billion dollars was used to sufficiently restore the nation to its former glory. The stability of the nation was at hand when the president made this decision, but the country's best interest was at hand. The president used an keynesian approach to subdue our current economic problem; "Takes money to make money". Although economic prosperity will not be seen for a long period of time, the goal is clear. The house of representatives is focus on health care and the education department. Each state shall receive over 13 million dollars for education and it will go towards the infrastructure as well as materials/ necessities needed for successful education. There are also steps being taken by the senate to promote a "Green" planet; 98 million dollars is going towards creating green safe products and substitutes for natural resources that can be hazardous. These implementations that are currently the basis of the stimulus plan is what Obama endorses. The main consensus of this plan is that the president devised a way to combat the economic crisis at hand and we as people are seeing some examples of change; lower taxes and new improvements in communities/transportation. The only negative aspect of this government spending is it will eventually lead to a larger amount of national debt if the economy doesn't stabalize in the near future.
ReplyDeleteQuestion:Why is President Obama willing to put the U.S into a larger deficit, the largest deficit in the history of the U.S?
Jonathan Ayoub
Block: F
The stimulus plan overall is a plan created to try to restore and recover the economic crisis going on today.This isn't your 'run-of-the-mill recession" article talks about Obama's stimulus plan. Obama is approximately spending $825 billion dollars-thats about a third of it is in tax cuts,and about two-thirds of it is in direct spending for things like road projects, waters, levies, and all other kinds of infrastructure projects.Obama's plan aims to stimulate employment, certain critical economic sectors, and U.S. consumer spending. The initial plan (PDF) includes investments for energy, science and technology, education and healthcare. The plan also includes $140 billiondirected toward tax cuts of $500 per worker or $1,000 per family over two years; expanded tax credits for working poor with children; and a $2,500 college tuition credit. i would say the Obamaadministration's spending on economic stimulus will be broader than what's included in the stimulus spending plan. This is a great plan from Obama because it definetely guarantees benefits in restoring the economy.Barack Obama's economic stimulus plan will inject $75 billion of stimulus into the economy by getting money in the form of tax cuts and direct spending directly to the people who need it most. Obama's proposal will immediately provide stimulus using means that do not require lengthy governmental or administrative delays. The plan also reserves an additional $45 billion of stimulus that can be injected into the economy quickly in the future if the economy continues to deteriorateFor most Americans, this is a time of great economic anxiety. People are working harder for less and paying more for everything from health care, to college tuition, to filling up the gas tank.Strengthening our economy will be Barack Obama’s priority from day one as president.Experts agree that an effective stimulus package must provide immediate, temporary, direct economic relief targeted to the people who need it and are most likely to use the funds and increase the level of economic activity in their communities without permanently increasing the budget deficit.
ReplyDeleteMy question:Well, it seems also to get down to basic philosophical differences between the two parties. One is on the Democrats' side; that you should spend to spur the economy. And on the Republican side, cut taxes as a way of spurring economic growth. What do economists say is the best way?
Ashley Suechee
Block: F
the stimulus package proposed by President Obama is meant to aid the nation in this economic downturn.president Obaqmas plan is suppposed to restore and recover the economic crisis going on today."the run-of-the-mill recession" article talks about Obama's stimulus plan. Obama is approximately spending $825 billion dollars-thats about a third of it is in tax cuts,and about two-thirds of it is in direct spending for things like road projects, waters, levies, and all other kinds of infrastructure projects. the plan aims to stimulate employment, certain critical economic sectors, and U.S. consumer spending. The initial plan (PDF) includes investments for energy, science and technology, education and healthcare. The plan also includes $140 billiondirected toward tax cuts of $500 per worker or $1,000 per family over two years; expanded tax credits for working poor with children; and a $2,500 college tuition credit. i would say the Obamaadministration's spending on economic stimulus will be broader than what's included in the stimulus spending plan. This is a great plan from Obama because it definetely guarantees benefits in restoring the economy.
ReplyDeleteThe purpose of Obama’s Stimulus Plan is to aid the U.S from its economic crisis which he hopes will also benefit in the long run. The bill cost approximately $838 billion dollars. However the price, the Stimulus plan is mean to open up about four million job opportunities for the unemployed American citizens. What is great about the Stimulus plan is that is does not only focus on one aspect of the economy. The stimulus plan will provide funds to schools, and the Federal Reserve System will give schools the access to more technology. This will further enrich the minds of the students. Also the stimulus plan includes funding for more food stamps and proper funding for Medicaid and health care. Even though it seems as if Obama is on a great track to recovering the U.S economy, and people are well supporting him in his efforts, we can’t forget that the U.S is in a multi-trillion deficit. The U.S government receives money from other foreign nations which is useful sometimes, but it will not help us in the long run. In reading the article about the plans to help recover the U.S, I have come to a conclusion that the actions that are being made to help bring the U.S back to recovery is, in fact, a Keynesian solution. This is because the government and other governments are involved in the aid of the U.S economy. Which brings my attention to the fact that the U.S government, now more than ever, relies on other foreign nations for support. When it used to be that other nations would come to the U.S for aid.
ReplyDeleteGoing back to Obama’s stimulus Plan, suppose if in the long run the U.S economy does not recover. It is obvious that the lives of the citizens will suffer greatly. Not only will poverty increase and the lives of the people worsen but so will the students and their education.
Sorry Jackie- I don't knwo what happened with the formatting!
ReplyDeleteOla - E
Dana - E
Brianna - S
Laurel - G
Tirath - G
Brianne- G
Samantha W- S+
Allison - E
Jonathan A- E
Ashley - E
Derek - S
Kristine - G