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American Recovery and Reinvestment Act of 2009 (view source)
Revision as of 11:03, February 1, 2009
, 11:03, February 1, 2009add GOP governors
The '''Economic stimulus package''' is a 2009 bill by president [[Barack Obama|Barack Hussein Obama]] and the Democratic leadership in Congress to spend $819 billion or more dollars to revive an ailing U.S. economy, battered by the [[Recession of 2008]]. It includes $275 billion in tax cuts, and the rest for spending on a very wide variety of projects.<ref> [http://www.nytimes.com/2009/01/29/us/politics/29assess.html?hp David M. Herszenhorn, "Stimulus Package’s Components Vary in Speed and Efficiency," ''New York Times'' Jan. 28, 2009]</ref>
The '''Economic stimulus package''' is a 2009 bill by president [[Barack Obama|Barack Hussein Obama]] and the Democratic leadership in Congress to spend $819 billion or more dollars to revive an ailing U.S. economy, battered by the [[Recession of 2008]]. It includes $275 billion in tax cuts, and the rest for spending on a very wide variety of projects.<ref> [http://www.nytimes.com/2009/01/29/us/politics/29assess.html?hp David M. Herszenhorn, "Stimulus Package’s Components Vary in Speed and Efficiency," ''New York Times'' Jan. 28, 2009]</ref>
"The strategy under this bill is to throw billions of dollars in every bureaucratic direction, and cross our fingers and hope for the best," said Rep. Ken Calvert (R., Calif.) during debate. Rep. David Obey (D., Wis.), the chairman of the House Appropriations Committee, responded, "We need to compare the cost of this package against the cost of doing nothing. The cost of nothing would be catastrophic."<ref> See [http://online.wsj.com/article/SB123315486943524321.html?mod=rss_Politics_And_Policy Jonathan Weisman, Greg Hitt And Naftali Bendavid, "House Passes Stimulus Package; $819 Billion Jolt to Economy Aims to Reshape Education, Health Care; Deficit to Soar," ''Wall Street Journal'' Jan. 29, 2009]</ref>
"The strategy under this bill is to throw billions of dollars in every bureaucratic direction, and cross our fingers and hope for the best," said Rep. Ken Calvert (R., Calif.) during debate. Rep. David Obey (D., Wis.), the chairman of the House Appropriations Committee, responded, "We need to compare the cost of this package against the cost of doing nothing. The cost of nothing would be catastrophic."<ref> See [http://online.wsj.com/article/SB123315486943524321.html?mod=rss_Politics_And_Policy Jonathan Weisman, Greg Hitt And Naftali Bendavid, "House Passes Stimulus Package; $819 Billion Jolt to Economy Aims to Reshape Education, Health Care; Deficit to Soar," ''Wall Street Journal'' Jan. 29, 2009]</ref>
The stimulus package is aimed at preventing the economy from collapsing and restoring it to normal. Conservative critics claims it will do little to help the economy and is filled with non-essential spending. The [[Congressional Budget Office]] says $347 billion more in interest will be the result, which brings the total plan over 1 [[trillion]] dollars. <ref>[http://www.foxnews.com/politics/2009/01/28/special-groups-line-piece-stimulus/ Special-Interest Groups Line Up for a Piece of Stimulus] Fox News, January 28, 2009</ref> According to the CBO analysis, timely spending of the money will be hampered by bureaucratic delays of up to two-years and the inability of state and federal agencies to efficiently and effectively spend the massive inflows of new money. <ref>[http://www.cnsnews.com/public/Content/Article.aspx?rsrcid=42725 Almost Half the Spending in Stimulus Bill Would Not Happen for at Least Two Years, Says CBO Analysis] CNSNews, January 29, 2009</ref>
The stimulus package is aimed at preventing the economy from collapsing and restoring it to normal. Conservative critics claims it will do little to help the economy and is filled with non-essential spending. The [[Congressional Budget Office]] says $347 billion more in interest will be the result, which brings the total plan over 1 [[trillion]] dollars. <ref>[http://www.foxnews.com/politics/2009/01/28/special-groups-line-piece-stimulus/ Special-Interest Groups Line Up for a Piece of Stimulus] Fox News, January 28, 2009</ref> According to the CBO analysis, timely spending of the money will be hampered by bureaucratic delays of up to two-years and the inability of state and federal agencies to efficiently and effectively spend the massive inflows of new money. <ref>[http://www.cnsnews.com/public/Content/Article.aspx?rsrcid=42725 Almost Half the Spending in Stimulus Bill Would Not Happen for at Least Two Years, Says CBO Analysis] CNSNews, January 29, 2009</ref>
House Republicans proposed a stimulus bill tilted more sharply toward tax cuts, which they say will generate the most economic activity the fastest. Their substitute proposed cutting individual and business taxes as well as reducing much of the bill’s spending; it was rejected by a party-line vote of 170-266. The failed GOP measure totaled about $479 billion, a little more than half the total passed by the Democrats.
House Republicans proposed a stimulus bill tilted more sharply toward tax cuts, which they say will generate the most economic activity the fastest. Their substitute proposed cutting individual and business taxes as well as reducing much of the bill’s spending; it was rejected by a party-line vote of 170-266. The failed GOP measure totaled about $479 billion, a little more than half the total passed by the Democrats.
Most Republican governors have broken with their GOP colleagues in Congress and are pushing for aid that would send billions to states for education, public works and health care. Since their state treasuries drained by the financial crisis, governors would welcome the money from Capitol Hill, where GOP lawmakers are more skeptical of Obama's spending priorities. The bipartisan National Governors Association called on Congress to quickly pass the plan, saying:
:"States are facing fiscal conditions not seen since the Great Depression — anticipated budget shortfalls are expected in excess of $200 billion. Governors support several key elements of the bill critical to states-increased federal support for Medicaid and K-12 and higher education; investment in the nation's infrastructure; and tax provisions to spur investment."<ref>Beth Fouhy, "GOP governors press Congress to pass stimulus bill," [http://news.yahoo.com/s/ap/20090201/ap_on_re_us/stimulus_gop_governors_6 Associated Press Feb. 1, 2009] </ref>
The 2009 bill includes tax rebates that resemble in part the $152 billion stimulus law proposed by President [[George W. Bush]] and passed by Congress in Feb. 2008. However those 2008 rebates were mostly (85%) saved and used to pay down debts rather then make new purchases, so they failed to stimulate the economy in 2008. <ref>see [http://www.reuters.com/article/newsOne/idUSN0631744820080208 Reuters, Feb. 8, 2008]</ref>
The 2009 bill includes tax rebates that resemble in part the $152 billion stimulus law proposed by President [[George W. Bush]] and passed by Congress in Feb. 2008. However those 2008 rebates were mostly (85%) saved and used to pay down debts rather then make new purchases, so they failed to stimulate the economy in 2008. <ref>see [http://www.reuters.com/article/newsOne/idUSN0631744820080208 Reuters, Feb. 8, 2008]</ref>