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

COMMENTS

Comment by Barry on February 15, 2009 @ 2:32 am

It is a shame that this was touted as a stimulus package when it really is a welfare package. I see very few jobs being created. And President Obama can claim that 3.5 million jobs were saved and not have to produce a lick of evidence that in fact is the result, no matter how many more jobs really are lost... he has saved 3.5 million from going into the hopper. As soon as Monday, knowledgeable people will se right through this and hold onto your seats, the market and the economy are heading further south.

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Comment by Joey Steeze on February 15, 2009 @ 1:28 am

The next leg down in this market comes when the markets realizes that this stimulus package isn't going to produce the intended benefits.

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Comment by Eye's Wide Open on February 14, 2009 @ 11:10 pm

One third of this stimulus package is for welfare and if that's not interesting enough 20 million for emergency immigration for Gaza Palestinians. U.S.A. perhaps?

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Comment by John on February 14, 2009 @ 9:54 pm

We will retest our November lows - I would bet money on it.

And I also think that we are going even lower than that. How much money can we continue to throw at this problem? Eventually we will just have to land wherever we land.

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