Needs Some Adjustments

The stimulus package proposed by our newest president, Barack Obama, has extremely good intentions and logic behind it. It’s modeled after FDR’s New Deal which proved to be extremely effective in helping the United States climb out of the Great Depression. "Fiscal stimulus aims to boost economic activity during periods of economic weakness by increasing short-term aggregate demand.” [1] This means that the package is trying to increase the purchases of goods and services during a time where people are cutting back. If people begin to spend their money again, local and national businesses and industries can thrive, allowing for more jobs and a more stable economy. The economy will certainly benefit from the passing of the stimulus package; however, the package would be more effective if the extensive amount of earmarks that have been slipped in were to be removed. The bill as currently written “contains dozens of narrowly defined programs that send money to specific areas or cater to special interests…” [2] The earmarks found in this bill are of good intention and for good causes, but in this state of such severe economic recession, they need to take a back seat and wait for a more appropriate circumstance. Moreover, the stimulus package is a good idea, but it requires some changes before it can be an effective solution to the economic depression occurring in the United States.

Sources:

[1]http://topics.nytimes.com/topics/reference/timestopics/subjects/u/united_states_economy/economic_stimulus/index.html

[2]
http://www.msnbc.msn.com/id/29025047/