We need another financial stimulus to boost the economy? $700 billion isn’t enough to jumpstart our economy? Expert on the economy of the United States, Federal Reserve Chairman Ben Bernanke, had an hour and a half interview with Representative DeLauro where Bernanke talked about the need for another economic stimulus for the majority of the 90 minutes. Dodging the term “recession”, Bernanke stressed that Congress needs to start considering another stimulus while also dodging how much money a new stimulus should encompass. Alongside of Bernanke, Democratic leaders are urging Congress to pass another $300 billion financial stimulus that would be directly implemented in infrastructure projects, unemployment benefits, spending for food stamps, home heating projects, and Medicaid programs. Representing the Republicans, President Bush has been requesting that American consumers be patient and allow the Rescue bill to take full circle action before criticizing its effects. Bernanke’s main argument is that the economic crisis is going to be in effect for awhile so we should take the initiative and enact another stimulus to instigate economic recovery. Most economists believe that the economy is going to worsen the rest of this year and well into the year 2009. Experts predict the unemployment rate to skyrocket to at least 7.5% next year since it is at an unbelievable high of 6.1% right now. With frightening statistics like these that don’t even skim the surface of the economic crisis could another stimulus actually be a good idea?
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7 comments:
Merritt,
Why do Democratic leaders want to use another $300 billion for a second economic stimulus when, according to my bank post, $350 billion of the previous package is still unused? Also, will additional bailout packages be passed for further economic stimulus? Finally, did the first bailout package slow the economic recession, given the expected worsening of the economy?
Tommy
Another 300 billion??? This just makes me anxious. Did they already use all of the 750 billion? By all means if our economy can’t show improvement with a 750 billion plan then the economy will not be fixed by giving them 300 billion more. I’m curious to know about the changes that this plan has accomplished. All I here is President Bush saying it’s going to take time... how long exactly? If we can’t fix it any time soon, wouldn’t it be better to let the economy fix itself?
Another 300 billion??? This just makes me anxious. Did they already use all of the 750 billion? By all means if our economy can’t show improvement with a 750 billion plan then the economy will not be fixed by giving them 300 billion more. I’m curious to know about the changes that this plan has accomplished. All I here is President Bush saying it’s going to take time... how long exactly? If we can’t fix it any time soon, wouldn’t it be better to let the economy fix itself?
It is hard to imagine another $300 billion to improve the economy. The $700 seemed more than enough. If Bernake proposes this $300 billion he needs to be extremely clear on its uses and potential effectiveness, he should not "dodge" questions. Besides, I think we should give the 700 billion "breathing room" we need to let it resonate to the economy before we start decrying it.
Merritt,
Great post. I like keeping informed on this topic. It seems that only encouraging another 300 billion dollar economic stimulus payment will only worsen Americans' fear of the economy. If the United States needs another 300 billion dollars just to dig us out of this hole, than how much trouble is our economy actually in?
Tommy, thank you for your useful comments. I think that the Democrats are concerned that after this Rescue bill's fundings are circulated back into our economy that we might need another one to reiterate the revamp of the economy. I am unsure as to your question regarding the passage of additional bailout packages because Congress has yet to even be given a bill or package to debate about yet. Also, the first bailout package has been proven beneficial so far; however, critics are concerned that it is not doing it's money's worth of the job.
Dear st3vzla,
Thank you for your comments! I am unsure as to how long it is going to take until we can completely notice a boost in our economy due to the Rescue bill. I agree with your point that if it's going to take so long for the bill to go into action why not just let it fix itself. However, the amount of time it will take for the economy to fix itself certainly outlasts the amount of time it will take for the Rescue bill to go into action.
Dear Emily,
It is absurdly frightening when thinking about the catastrophic state that our economy is currently in. Your point that American's are going to become more and more frightened with talk about another stimulus bill is very interesting. I think there comes a point, though, when the government needs to ignore the fear among Americans and focus on the task at hand--fixing the economy to the best of their ability.
Thanks ya'll!
Why in the world are we trying to use yet another stimulus to boost the economy. It seems that we are desperate as a nation for a quick fix, mainly by throwing a lot of money at the problems. Do you think that all this money is going to fix the economic recession that we are in so soon, like the politicians are hoping for?
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