http://topics.nytimes.com/topics/reference/timestopics/subjects/u/united_states_economy/economic_stimulus/
Economic Stimulus
The stimulus idea passed in the House of Representatives with a vote of 244 to 188 with not a single vote for it coming from a republican. The Democrats believe the economy is in dire need of a stimulus since the downfall of Wall Street this Fall. President Obama's stimulus plan is one of the largest in history, capping off at $819 billion. Many economists think this idea will lead to a even further downfall due to one problem. You cannot force people to spend the package and many will pocket it and save it. The economy will only be revived in one way; a widespread and long term jump in economic spending. We need to find ways to make people spend money without hurting themselves. In my opinion, which I know may be highly criticized, we need to take a page out of the Communist book. If we allow more government involvment in personal and economic decisions then we can be sure that things will change. Since one person cannot guarantee an income from one day to another they will become more stingy and hold on to their money. This will result in an even larger downward spiral. Now lets say we let the government have more control of the distribution of money. Workers don't get pay cuts or laid off. They are able to spend more money and bring an income to businesses. The businesses can buy more wholesale and produce more in the factories and the economy can return to normal. if not stronger.
Tuesday, February 10, 2009
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