The $787 Billion Dollar Stimulus Package - Good or Bad Over The Long Run?
The $787 billion dollar stimulus package has now passed through both the House and the Senate, and is now awaiting Barack Obama's signature.
This stimulus package is amongst the most expensive pieces of legislation to ever pass through Congress.
Democrats argue that the stimulus package is necessary to reinvigorate the flatlining US economy.
Republicans argue that the bill is filled with unnecessary spending - none of the House Republicans voted in favor of the bill.
Democrats argue that the package will create 3.5 million jobs, though top Democrats concede that there is no guarantee that this will happen.
Republicans argue that there needs to be more in the way of tax cuts in the bill, and that the package is swollen with needless government spending.
Regardless of what politicians on both sides think, the stimulus package has passed through both the House and Senate, and is soon to be signed into law by Barack Obama.
There are a number of questions that people are asking at this point, including:
1. Will this package help to stabilize the US economy and end this horrible recession that we currently find ourselves in?
2. What are the long-term benefits and consequences of this bill?
3. If this stimulus package doesn't help to resurrect the US economy, then what will happen next?
4. Are there any "bullets" that the US government will be able to fire at the economic problem if this package doesn't end up reviving the US economy?
5. How will the markets react to this package being signed into law?
6. Will this package help to create the 3.5 million jobs that was promised by its supporters?
In terms of the major market indexes - are we going to sell off now that the stimulus package has passed both the House and Senate? Will we retest the November lows?
Or will this mark the beginning of our recovery?
I'd be interested to hear your take..
Filed under: The Economic Meltdown