January 12th, 2009
01:43 PM ET
6 years ago

Obama rescue 101: Where it stands

The president-elect's plan to revive the economy is taking shape. Here's what we know so far.
The president-elect's plan to revive the economy is taking shape. Here's what we know so far.

NEW YORK (CNNMoney.com) - As lawmakers head into the second week of debate over President-elect Barack Obama's proposed economic stimulus plan, new details continue to shed light on what promises to be a sprawling and complex piece of legislation in American history.

Though many details are still lacking, the aim of the American Recovery and Reinvestment Plan is clear: rejuvenate the economy and create jobs by spending hundreds of billions of dollars on infrastructure, state budget relief, safety nets for the needy and tax cuts.

A recent analysis by Obama economic advisers Christina Romer and Jared Bernstein suggested that the proposed plan could save or create 3 million to 4 million jobs by the end of 2010.

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soundoff (90 Responses)
  1. Libs be dopes

    Perhaps a simple soultion....with about $350 million left in the pot.

    Every taxpayer, that is someone that actually paid taxes get $1,000,000 from American Recovery and Reinvestment Plan.

    If you paid no tax, or got more back that you paid, you don't qualify.

    Dems would love it as the 1 Mil gets taxed as income at the Federal and State level. Dems love taxing everything and everybody.

    Repub would love it as 'Fat Cat" companies would get larger.

    Taxpayers would love it as Americans will do what Americans do best, that is spend or invest the rest.

    Drawback....Senators and Represenatives would dislike it as they would no longer have control over our money and we actually get to spent it the way we want, not the way they want.

    Drawback....Those that paid nothing will feel disenfranchised as they get nothing back.

    Final analysis...........won't happen because of the drawbacks.

    January 12, 2009 04:10 pm at 4:10 pm |
  2. vdm

    While any tax break is welcome, I can't see that $9.62 a week ($500 break in payroll taxes for one year ) is going to make a difference in how I spend my money. I am most certainly not going to buy a new car for that.

    Most of the proposed spending (being sold to us as "new jobs") is on government-owned infrastructure for which we taxpayers will have to foot the bill unless Mr. Obama plans to just print the money. If he just prints the money, then we will have inflation just like we did in the 1970's. The money has to come from somewhere.

    Creating new government jobs or new government hand-outs does not create wealth because you are taking away wealth from the private sector (individuals and business) where it could have been spent or invested for profit. Your taking away $100 (taxes) from me and giving it to someone else (new job), minus an administration fee (cut for the government employees handling the program), hasn't created anything. It is the same $100 regardless who gets it or spends it.

    Individuals or businesses that develop or produce technology or products that can be sold for profit DO create wealth. Government needs to get out of the way and allow them to keep more of the money that they ALREADY earned. This is how jobs AND wealth are created.

    Abuses and law-breaking by large corporations should be punished by the government, not rewarded with bailout money. Poorly managed companies should not be exempt from the laws of supply and demand, and should be allowed to fail.

    I did not vote for Obama or McCain and I learned this stuff from one semester of Economics. It wasn't as hard as I thought it would be.

    January 12, 2009 04:25 pm at 4:25 pm |
  3. William, from Cali!

    I hope they are right! But we shall see!

    January 12, 2009 04:34 pm at 4:34 pm |
  4. Las Vegas, NV

    What amazes me is his economic plan to build our infrastructure and provide jobs for those building our infrastructure but does he realize that most of the country loosing jobs is in retail more and more retail stores are closing and leaving their employees with no jobs. You can't tell me that these companies that will be given the task to build up the infrastructure which probably will be government jobs are going to hire retail employees from Linens & Things and Mervyns who went out of business to build bridges, buildings etc they have no experience at these kind of jobs and they won't be qualified they will be told no and as for educating them they need jobs now not in a year or 2 after college. Oh yes alot of Americans from the manufacturing industry have already lost their jobs but probably as many retail employees have as well. There won't be enough QUALIFIED PERSONS to fill these jobs and they will probably have to out source these jobs from other countries.

    January 12, 2009 04:48 pm at 4:48 pm |
  5. MD

    The urgency of the Obama / Democrat Spending spree will only be outwieghed by the hyper-inflation and high unemployment that this spending will create. This plan is as shortsighted as it is dillusional.

    January 12, 2009 04:55 pm at 4:55 pm |
  6. JT from Missouri

    After reading Obama's economic stimulus plan, I have to say, Obama is following an very important quality for caring for people in need. Today, I was reading a book from George Lakoff, and what Obama is doing is very similar to the two paragraph quote I read. The book of where I got this from is, "How Liberals and Conservatives Think" The quote is on page 116 on that book. It is about Moral Empathy.
    "Another type of empathy is affordable empathy. It is the ability of people who are relativity well off to empathize with people who are less fortunate than they. The logic of affordable empathy is the Wooden Rule. Do unto others as you would have them do unto you- providing that you can afford it easily"!
    "Charity, as it is all too often practiced in this country, combines moral accounting with affordable empathy. It is a way of accruing moral credit by giving something positive value-typically money- to people who are less well off than you can well afford it. Income tax deductions for charitable contributions are less interesting in this light; they permit you to accrue real financial credit rather than mere moral credit."
    What I am trying to say about all of this is that Obama is coming up with this money to help people who really do need the money. For example struggling home owners, small business owners, and just everyday tax payers who work there butts off and still cannot make ends meet. Obama is making sure that every penny of this stimulus package is well spent and goes out to people and businesses that really need it. To people who are arguing and blowing this off as a bad idea,if you think that you can come up with anything better, please do come up with something better that might actually help the country. If you cannot, there is no point in blasting his ideas. Remember that. Divided we fall, United we stand.

    January 12, 2009 05:05 pm at 5:05 pm |
  7. John

    GDP growth during Bush's presidency will be almost 30% as opposed to about 32% during Clinton's. Let's all blame Bush for that 2%. You can make statistics say anything you want. Clinton had a Republican Congress. There has been a Democratic one the last two years leading to the recession. Is that why GDP is rising slower or faster? Who knows? Let's just throw around the blame as stories which contain less than half of the facts continue to be written by the media. After that's done, lets all blame the oil companies one more time. I'm pretty sure they're the ones responsible for everything. Cheney is responsible for the collapse of the United States. I think Bush's dog is really to blame for the recession.

    January 12, 2009 05:08 pm at 5:08 pm |
  8. WIlly Brown

    Obama has no clue what to do. No George Bush to blame anymore Mr. Change. It's all going to be on ewe, you or U.

    January 12, 2009 05:20 pm at 5:20 pm |
  9. Bararck Obama, still just B.O.

    @ billy

    January 12, 2009 05:25 pm at 5:25 pm |
  10. Bararck Obama, still just B.O.

    Billy,

    At least they increased under Bush. Let's see how Obama does.

    Bush inherited a buble ready to burst from Clinton. Obama inherits the results.

    don's blame Obama's failures on Bush, unless you blame Bush's failures on Clinton.

    January 12, 2009 05:26 pm at 5:26 pm |
  11. Jackie in Dallas

    Lib Love Amesty

    I'm not sure where you live, but in Texas (one of the states with the highest number of illegal immigrants), I don't see how any of those who are here illegally could have gotten a mortgage to be in foreclosure over. I know when I tried for a mortgage, they practically looked at my DENTAL records! Without documentation of proof of citizenship or legal residence, I don't think any financier would grant them a mortgage!

    I will agree that illegals put a strain on our healthcare but most of the jobs they take are ones that employers can't get legals to take. We are not talking about high tech, high paying jobs here, we are talking yard work and other menial jobs that "real" Americans don't want to do for the money that the employers are offering. They will willingly take jobs at less than the minimum wage with no health care benefits, and no security - and the employers will not have to pay a lot of government taxes. Our main focus should be on penalizing the employers that hire them. Many of the illegals I've met, and I've met quite a few while working at homeless shelters and charities, come from places in Mexico or Central and South America that make our ghettos look like palaces.

    Now if you want to talk about jobs, what we really need to do is convince many of the US corporations that have offshored their operations that is more cost effective to bring them back to the US. You know, like repeal the tax breaks they are getting for offshoring jobs, penalize them by making government contracts impossible if more than a certain percentage of their jobs are not in the US, things like that. I don't understand why they don't see the cause and effect: if you move more tech jobs off shore for temporary cost savings, then you will have fewer US citizens who can afford their products because they aren't working. Some of this will even itself out as salary levels in India, Pakistan, and China are going up to the point where there will not be significant savings, but we could hurry that along.

    January 12, 2009 05:40 pm at 5:40 pm |
  12. tcaudilllg

    Yeah this is great and all... but what about the healthcare?

    January 12, 2009 06:05 pm at 6:05 pm |
  13. Virginia for Lovers!

    I feel such a new sense of hope and security with President Elect Obama / Vice President Elect Biden......I'm sure if Bush/Cheney would have just taken the time maybe just maybe they would have seen where jobs could have been created. Bush only seems to be more vocal and active at the end of his Presidency. President Elect Obama is starting off this way and I believe that's the path the American people have been longing for. Haters keep hating....cause that only confirms he is doing something right!!

    Hopeful and excited like never before. ONE NATION UNITED!

    January 12, 2009 06:09 pm at 6:09 pm |
  14. Ernie in LA

    GOPloser, What did you say? Are you sharing a joint with Griff?

    January 12, 2009 06:31 pm at 6:31 pm |
  15. Marie

    Roger it really sounds like you want Obama to fail.What do you expect of him comming into the mess that he'll have to deal with after this last administration.He won't let the american people down remember it is Obama entering the White House not Bush again.He will do what is right for the american people.What do you expect to see a change in months?It has been eight years and we are still waiting for change so DON'T blame Obama for doing the best he can considering the hand he was dealt comming into the election.Some of you republicans are so full of it.Just take a look at Joe the Plummer how he's making a mockery out of you he's over in Isreal and is making more money than you or I now that is a joke and shows how dumb you are about judging Obama.You better hope Obama can help us out of this dire strait because God help us... but don't you worry Joe the Plummer is making enough money to lend you to help with your morgage and put food on your table you ungrateful idiot

    January 12, 2009 06:35 pm at 6:35 pm |
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