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

Revision as of 07:43, January 29, 2009

The Economic stimulus package is a 2009 bill by President Obama and the Democratic leadership to spend some $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.^[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]

The White House claims that the stimulus package is aimed at preving 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 pork spending. The Congressional Budget Office says $347 billion more in interest will be the result, which brings the total plan over 1 trillion dollars. ^[3]

House

The House of Representative passed the economic stimulus package January 28, 2009 by a vote of 244-188, and now the bill 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.

Pork

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. Some of the 'stimulus' works proposed;

• $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 “carbon-capturing contest”
• $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 people who don’t pay income tax.
• $54 billion will go 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
• $572 million for Coast Guard improvements ^[4]

Items removed from the House bill

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

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. ↑ Stimulus stupidity alert Michelle Malkin,January 28, 2009