Folks, from the people I talk to on a daily basis, 40% lack understanding about the stimulus bill creation and what it was designed to do, there is still a huge confusion about the stimulus bill, but why? I don’t get it.
I keep telling people over and over that; in the beginning of 2008, faced with an economic crisis not seen since the Great Depression, the country had lost 2 million jobs and was expected to lose another 5 million or more in the next year, Credit was frozen, consumer purchasing power was in decline, Americans were struggling to sustain their standard of living, They were borrowing like crazy just to make end meets, most of them couldn’t borrow anymore, the middle and lower class were falling out,
basically folks the economy was just shutting down under President Obama presidency from gigantic problems that he inherited from the Bush administration.
The President needed to act fast, and took the crucial steps of urging Congress to pass the American Recovery and Reinvestment stimulus package Bill of 2009, we had no time to waist,
The President needed to save the 4 million jobs at sake and stop the recession by injecting $ 275 billion in economic recovery tax cuts, and $550 billion for priority investments, creating jobs through clean energy investments , the modernization of roads, bridges, transit and waterways, education grants, unemployment benefits extension, environmental protection and vital other services, etc...
Folks, The President quickly realized without the stimulus package, the economy would explode and we would be heading toward a severe depression, unemployment rate would sky rise, insurance benefits would run out and people would have no means of supporting their families, etc. It would be a disaster; we would definitely be in complete economic chaos, he needed to act fast and make tough choices, and by doing so he saved the world from a financial collapse.
The President did so with the passage of the stimulus bill to prevent the lost of million of more jobs, put the brakes on the recession, strengthening the economy and get it moving again through long term recovery projects at a historic level of transparency, with proven track records programs, an oversight and an accountability via a Recovery Act Accountability and Transparency Board of seven members, that will guarantee the taxpayer dollars are spent wisely through top priority targeted investments that we mentioned earlier, such as;
Clean, Efficient, American Energy, Modernize Roads, Bridges, Transit and Waterways, Education; Pell Grants, K-12 Education, Improving Teacher Quality,
transforming our Economy with Science and Technology, Tax Cuts to Make Work Pay and Create Jobs, tax cuts, lower Healthcare costs, Help Workers Hurt by the Economy,
Reliable, Efficient Electricity Grid, Advanced Battery Loans and Grants, Department of Defense Efficiency,
Creating Small Business Opportunity, Amtrak and Intercity Passenger Rail Construction Grants, Transportation Security Administration Explosive Detection Systems, Technology Improvements for a More Efficient and Secure Government, Medical Facilities, Border Ports of Entry, Construction on Public Lands and Parks, Clean Water State Revolving Fund, etc...
Folks, we all understand that 18 months since Congress passed the $787 billion economic stimulus bill, the nation still face a sobering economic data; unemployment is stuck at a near 10%, stock market having gains being wiped out from profits made early this year, disappointing job figures weak housing numbers, increasing worries that the economic recovery is still stalling are making Americans unwilling to spend, holding on to their money, etc... but folks here is the confusion;
The President never said that the stimulus package would be the miracle solution to the country’s problems, see folks; through the stimulus package, The President fought hard to keep million more people off the unemployment line, halt the recession, (he approved the Wall Street bailout, the emergency lending and asset purchases by the Federal Reserve), and promoted investments to cover the gap created by the drop in consumer spending and the liquidity trap, and because of the severity of this crisis, with the passage of the stimulus bill, he mandated the federal government to spend money, reduce its interest rates and open the flow of finances stagnated by frozen credit markets, and folks; under these extreme conditions a fiscal stimulus package was needed.
We are now in phase two of the economy recovery longer term plans, estimation of the impact the stimulus bill has had proved that not only did it halt the recession, but the legislation vast spending act created or saved between 2.5 million and 3.6 million jobs, the bill is right on track, the stimulus bill performed even better with the still economically-struggling country than previously projected.
Folks, we still have a long way to go, most definitely, there's obviously a lot of uncertainty about the economy, but I strongly feel that thanks to the administration and the Democrats efforts, our economy has gained the "traction" it needed to become self-sustaining and self-reinforcing without further additional stimulus monetary funds, it’s now a wait and see strategy, in the mean time, the President and the Democrats Congress are aggressively working for faster employment and income growth.
I am hoping that the American people will now have a better understanding of what the stimulus package was designed to do, and also realized what could have happen to the country if we had not acted at all.
Peace and love folks,
Carl Nicolas