Why We Need a Stimulus Plan

Discussion in 'Money Talk$' started by KenH, Jan 24, 2009.

  1. KenH

    KenH
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    An excellent article. Very good.

    The Case for Economic Stimulus

    By Will Straw | January 7, 2009

    View an infographic on four reasons why we can't afford not to have a stimulus

    The U.S. economy is facing its most serious economic challenge since the Great Depression. Companies shed 2 million jobs in 2008 alone and the economy has now been in a recession for over a year. Policies promoted by the Treasury and the Federal Reserve have failed to halt the recession. Economic recovery legislation is urgently needed to prevent an ever-worsening spiral of economic decline and job loss. The proposals reportedly under consideration by President-elect Barack Obama and congressional leaders are promising. Their magnitude is appropriate and—because we face a prolonged period of severe economic distress—it is also appropriate that the plan bolsters the economy over the next two years.

    The scale of the economic crisis means that a big recovery package is necessary. As Scott Lilly argues in his report, “Pumping Life Back into the U.S. Economy: Why a Stimulus Package Must Be Big and Targeted,” we may need a stimulus of $650 billion to $700 billion. New York Times columnist and Nobel prize-winning economist Paul Krugman suggests that the number may have to be even higher still. The good news is that the United States has the resources to do so, and cannot afford not to shirk this challenge. The cost of inaction from economic contraction in terms of lost jobs and failing businesses would be catastrophic.

    - rest at www.americanprogress.org/issues/2009/01/case_econ_stimulus.html
     
  2. Revmitchell

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    It is not a stimulus plan. Trillions of dollars is much more than that.
     
  3. LeBuick

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    Most economist says Obama is under what's needed and should be proposing something bigger. Sounds like he is exercising restraint.
     
  4. Pastor Larry

    Pastor Larry
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    Here's a novel idea: Let's take a trillion dollars and pay down the debt. That would do more good to the economy than this will, most likely. In fact, since we're printing money, let's just pay the whole debt off with printed money and start over.
     
  5. carpro

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    We need a stimulius plan, not the pork laden spending bill coming to Obama's desk that does nothing to stimulate the economy.

    Congress should be ashamed.

    Obama will prove he is not serious about stimulating the economy if hge doesn't veto the bill.
     
  6. Pastor Larry

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    I saw last night that part of this stimulus is $300 to social security recipients.

    What nonsense ... That won't help stimulate the economy. These one time payments won't do it because next month, those senior citizens will be right back where they were last month.
     
  7. Steven2006

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    One word. hyperinflation
     
  8. canadyjd

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    It is not an "excellent article". It is grossly inaccurate liberal spew. The four reasons are 1) fewer jobs 2) attempted remedies have failed: this includes lower interest rates making the "prime rate" effectively zero 3) Federal spending promoted lending, investing and insuring debt has failed 4) Money: "we have the money to spend.

    We can look at each, but first, the economy is not facing the most serious economic challenge since the Great Depression. Utter nonsense!

    In the late 70's (under the economic plans of the last big liberal president....Carter) unemployment was well into the double digits, interest rates were well into the double digits, price controls distroyed buisnesses, gas was being rationed (I remember the lines for 10 gallon limits), inflation was gobbling up the value of the dollar in your savings.

    What got us out of the crises? Ronald Reagan tax cuts and deregulation.

    1) fewer jobs: The country has lost 2 million jobs. Businesses are cutting back because fewer people are buying products.

    Answer: This is a natural cycle in business, and less severe than in the 70's. People have been borrowing like there is no tommorrow. The bills have come due, and they have to cut back to make ends meet. The best way to get them more money is to lower their taxes.

    2) Attempted remedies have failed. These include lower interest rates to effectively zero. This is the wrong rememdy. People don't need to continue reckless spending. They need to get their fanancial house in order. This crisis is forcing them to do that. It the government interfers, people will not make the necessary ajustments and the crisis will become worst.

    3) Federal spending has failed. Really? Then why are we looking at federal spending to fix it? It is reckless to continue to waste the taxpayer money on liberal policies that are certain to fail.

    4) We have the money: NO WE DON'T!!!! It is not the govenment's money. Until the liberal big spenders realize that other people's money is not theirs to waste, the problem will never be solved.

    What hasn't been tried is conservative policies of smaller federal government and federal spending that is coupled with lower taxes for everyone.

    peace to you:praying:
     
    #8 canadyjd, Jan 24, 2009
    Last edited by a moderator: Jan 24, 2009
  9. LeBuick

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    We'd have to raise taxes to get the Trillion but I'm all for it.
     
  10. LeBuick

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    Carter raised interest rates to 21% to fight inflation. Carter was hated but it worked so well Reagan kept his treasury secretary for his cabinet. Perhaps we should raise interest, that should stop all frivolous borrowing.
     
  11. tinytim

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    Now that I would agree to!
     
  12. ReformedBaptist

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    Good article. They are right by the way. Regardless if our beliefs agree with the plan. Either this country goes through a depression or we do a stimulus, and it need to be very very large, and swift.
     
  13. Revmitchell

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    You could not prove either one of those.
     
  14. KenH

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    World War II, which while the intent was fighting the Axis Powers, was a very, very large and swift federal government stimulus program which finally put an end to the Great Depression.
     
  15. ray Marshall

    ray Marshall
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    These banks do not won't you to withdraw your money that you have worked hard for. They won't your money in the bank but you will go under as well as they if you don't do something with your hard-own cash before they finally are broke and you too.
     
  16. ray Marshall

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    Not a good idea, the money we print has to have someone to pay it back. Who do you think is going to pay it back????
     
  17. Pastor Larry

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    It was a joke.
     
  18. targus

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    Ken, I know that I have asked this question of you several times now and I am hoping that you will answer it this time.

    Since we have been spending huge amounts on the wars in Iraq and Afghanistan why do we have a recession now?

    Why didn't that massive Federal spending plus all the other new Federal spending in the last four years keep us out of a recession?

    As you know we have been running enormous Federal budget deficits for the past few years so why are we in a recession now?
     
  19. KenH

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    I have answered this before. Spending money in Iraq and Afghanistan rebuilding those countries stimulates their economies, not ours. Building things there doesn't equate to building things here.
     
  20. targus

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    I will take this up with you in the new thread already started.
     

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