Difference between revisions of "American Recovery and Reinvestment Act of 2009"

Revision as of 20:22, February 12, 2009

The Trillion Dollar Spending Bill created by Democrats in 2009 advances many aspects of the liberal agenda, while being promoted as an "economic stimulus package" supposedly needed to revive "an ailing U.S. economy" (see Recession of 2008).

It is a 2009 bill by president Barack Hussein Obama and the Democratic leadership in Congress to spend over $800 billion or more dollars. It includes $275 billion in tax cuts, and the rest for spending on a very wide variety of projects.^[1]

"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."^[2]

Promoter of the measure say it is aimed at preventing the economy from "collapsing" and at "restoring it to normal." Conservative critics claims it will do little to help the economy and is filled with non-essential spending.

• But government spending plans do not stimulate the economy. They are based on the idea that feeding “new” money into the economy will create economic growth. But the money isn’t new—it’s either taxed or borrowed. It's essentially redistributed from one group of people to another, and no new money is created. [2]

The Congressional Budget Office says $347 billion more in interest will be the result, which brings the total plan over 1 trillion dollars. ^[3] 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. ^[4]

House Republicans proposed a 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."^[5]

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 may have failed to stimulate the economy in 2008. ^[6] Some studies show that both the 2001 and 2008 tax rebates were both surprisingly effective. ^[7]

House

The House of Representative passed the bill January 28, 2009 by a vote of 244-188, and now it heads for the U.S. Senate. All Republicans cast a no vote as did eleven Democrats. It is expected the Senate will increase the amounts allocated for tax cuts.

Non Essential

The people in charge of spending tax dollars are set to spend like never before and special interest groups are poised to be the recipients. House Minority whip Eric Cantor, R-Va., told the media Wednesday, “This was not a stimulus bill. It was a spending bill.” ^[8]

Some of the 'stimulus' works proposed;

• $650 million for digital TV coupons
• $600 million for new cars for the federal government
• $6 billion for colleges/universities
• The plan establishes at least 32 new government programs at a cost of over $136 billion ^[9]
• $25 million for new ATV trails
• $400 million for the National Endowment for the Arts
• $400 million for global warming research
• $30 billion has been set aside for infrastructure spending
• $200 million for Dep. of Defense to acquire alternative energy vehicles.
• $1.5 billion for a CO2 Reductions
• $4.2 billion for community organizing ^[10]
• $3.5 billion for higher education facilities
• $400 million for HIV and chlamydia testing
• $150 million for The Smithsonian
• $81 billion for Medicaid
• $36 billion for expanded unemployment benefits
• $20 billion for food stamps
• $83 billion for the earned income credit for non-taxpayers
• $54 billion to federal programs Economic Development Administration, the Small Business Administration, the 10 federal job training programs
• $66 billion for education
• $650 million coupons to subsidize digital television conversion^[11]
• $572 million for Coast Guard improvements ^[12]
• $1 billion to subsidize Amtrak
• $2 billion to help subsidize child care
• $2.25 billion for national parks
• $75 million for programs to help people quit smoking
• $44 million to renovate the headquarters building of the Agriculture Department
• $200 million for the National Mall, including $21 million for sod
• $53.4 billion for science facilities, high speed Internet, and miscellaneous energy and environmental programs.
• $32 billion for a "smart" electricity grid to minimize waste
• $13 billion for public housing, the homeless, renovate foreclosed homes
• $20 billion for quicker depreciation and write-offs for equipment
• $10.3 billion for tax credits to help families defray the costs of college tuition

Items removed from the House bill

• $200 million for new contraceptive service
• $20 million to renovate the National Mall

External Links

• Stop The Stimulus!

References

1. ↑ David M. Herszenhorn, "Stimulus Package’s Components Vary in Speed and Efficiency," New York Times Jan. 28, 2009
2. ↑ See 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
3. ↑ Special-Interest Groups Line Up for a Piece of Stimulus Fox News, January 28, 2009
4. ↑ Almost Half the Spending in Stimulus Bill Would Not Happen for at Least Two Years, Says CBO Analysis CNSNews, January 29, 2009
5. ↑ Beth Fouhy, "GOP governors press Congress to pass stimulus bill," Associated Press Feb. 1, 2009
6. ↑ see Reuters, Feb. 8, 2008
7. ↑ see [1]
8. ↑ GOP Resisted as Stimulus Veered Off Target NewsMax, January 29, 2009
9. ↑ That means more than a third of this plan's spending provisions are dedicated to creating new government programs.
10. ↑ Sen. Vitter: ACORN Getting ‘Political Payoff’ NewsMax, January 29, 2009
11. ↑ addref
12. ↑ Stimulus stupidity alert Michelle Malkin, January 28, 2009