Talk of a 2009 Obama Economic Stimulus Plan

U.S. Economy Package - Tax Cuts, New Jobs, Infrastructure Projects?

Dec 23, 2008 Lena Gott

What will a 2009 Obama economic stimulus plan do for the U.S. economy? What is an infrastructure project? Prediction: tax cuts, new jobs, green projects in new package.

These days, the United States government is trying all sorts of tactics to revive a dismal U.S. economy and slumping stock market. In early 2008, Congress passed an economic stimulus package that put cash (commonly known as tax rebates) in the hands of almost every tax-paying citizen. In late 2008, the Federal Reserve announced an unprecedented fed rate cut that slashed the federal funds rate to a target range of 0 to .25 percent. In recent days, the media has highlighted the possibility of yet another government action – an economic stimulus plan during Barack Obama’s first weeks of presidency.

Talk of an Obama Economic Stimulus Plan: Ways to Revive a Bad U.S. Economy

Infrastructure Projects, Tax Cuts, New Job Creation

How can president-elect Barack Obama combat the slowing economy? Two ways are via infrastructure projects and tax cuts. Both would create new jobs.

He could spend money on infrastructure projects which would create jobs and pump cash into the economy. Obama could lower taxes, which would leave more cash in consumers’ and businesses’ bank accounts. Individuals with more cash on hand might spend more money; companies with more cash on hand might hire more workers.

2009 Economic Stimulus Package Definition: What is an Infrastructure Project?

The Investor Words website defines infrastructure as the basic physical systems of a community, essential for enabling economic productivity. Coupled with the Merriam-Webster definition, infrastructure can be thought of in laymen’s terms as the systems or buildings necessary for an economy to function. So, infrastructure projects could logically include improvements to or overhaul of any of the following: roads, bridges, airports, pipelines (water, oil), sewage systems, power plants, and telecommunication systems.

Why the focus on infrastructure projects?

1. They create jobs.
2. They pump cash back into the economy.

U.S. government money (raised through taxes or perhaps borrowed) would be funneled into local economies. Companies that provide the services and materials for infrastructure projects would need to hire more people (presumably, those who are currently out of work). Cash would flow through businesses, into the hands of citizens, and back to the government in the form of taxes. If profits are up, company leadership will feel more confident about the future and resume or increase hiring. If profits are up in publicly traded companies, investors will feel more confident and resume or increase investment in the stock market.

Green Projects Part of 2009 Obama Economic Stimulus Plan?

Barack Obama may conceivably tackle two issues at once, the economy and the environment, by slating economic stimulus money for environmentally-friendly (“green”) projects. For instance, a new building could incorporate energy-efficient technology. This would open up opportunities for different types of jobs. Workers might need to be trained on new skills and non-traditional white-collar jobs may be in high demand (think: environmental lawyers).

Other examples of green projects:

• High speed mass transit and bus systems
• Energy efficiency upgrades like improving building insulation, stopping energy leaks, or installing energy-efficient appliances

In the days leading up to Obama’s inauguration in January 2009, the media will highlight the need and expectation of government stimulus to save the American people from financial crisis. Discussed above is what a 2009 economic stimulus plan might bring to the American people. In addition to the elements above, U.S. taxpayers may see another tax rebate check or relief in the form of tax credits.

The copyright of the article Talk of a 2009 Obama Economic Stimulus Plan in American Affairs is owned by Lena Gott. Permission to republish Talk of a 2009 Obama Economic Stimulus Plan in print or online must be granted by the author in writing.

Obama Economic Stimulus Plan May Pass	What is an Infrastructure Project? Think Bridges	2009 Economic Stimulus Package: New Jobs?
Government Stimulus: U.S. Tax Rebates, Credits	Green Projects, Road Work: Revive U.S. Economy?

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Comments

Jan 8, 2009 9:39 AM

Guest :

creating jobs is a great thing, but most americans are hurting right now, like us who work 80 hours for a paycheck and after paying bills there is not money left for food or heating oil. Money in the americans pockets would get the economy turned around faster, but not just a $1000.00, the money needs to be a substancial amount. otherwise a lot more of us will be filing Bankruptcy to get out from under our debt, we would rather have food.

Jan 14, 2009 1:00 PM

Guest :

plan amount 150 billion dollars their approximately 300-400 million residents in us. That means less house holds per house. Their trying to give 1200 dollar check. Im sorry what exactly am i suppossed to do with 1200? So i was thinking if every house hold got a check for a couple of thousand lets impose 20 thousand. Then that means people would spend more putting back into the economy by purchasing and back to the state in tax form and every small business owner would spend also with 20 thousand and increase human and capitol assets creating more jobs what evers left over then big businesses and gov plans. :)

Jan 21, 2009 6:16 PM

Guest :

all people should get drug tested before being givin a check, all who test positive, should go to rehab, and alcoholics should go to aa to get a check

Jan 22, 2009 5:00 PM

Guest :

PLEASE JUST SEND OUT A STIMULUS CHECK TO THOSE WHO WORKED IN 2008, IT SHOULDNT MATTER HOW MUCH INCOME THEY RECIEVED WE ALL NEED HELP, SO WE CAN GO OUT AND GET GROCERY'S FOR OUR FAMILY SO WE CAN PURCHASE A NEW CAR TO GO OUT AND GET A NEW AND HIGHER PAYING JOB....WE NEED A CHANGE..THE WORLD AS ENOUGH MONEY TO GO AROUND MONEY THEY DONT USE THEY BURN IT...THATS STUPID THEN THEY HOLLA THEY BROKE....WE NEED MONEY THATS THE KEY TO LIFE.

Jan 28, 2009 1:01 PM

Guest :

I JUST DONT UNDERSTAND THE WORLD WE CAN MAKE MONEY YES THE GOVERNMENT CAN MAKE MONEY.WHY NOT SEND EVERYONE YES WHO WORK IN 2008 A 5,000 DOLLAR CHECK TO HELP SOME PEOPLE CATCH UP ON THERE BILL TOO BE ABLE TO FIND A CAR TO GET AROUND IN.MANY PEOPLES HAVE LOST THEIR JOBS AND CAR AND HOMES.5,000 DOLLARS CAN HELP MANY ,MANY,MANY PEOPLE.

Jan 28, 2009 10:02 PM

Guest :

what people will not be intiled to the stimulus check? we are all americans are we not?

Feb 2, 2009 4:54 AM

Guest :

You shouldn't have to pay taxes on income you use for necessities like food, medicine, insurance, daycare, etc. We should be able to deduct these items from our gross income and lower our taxable income. This way people who spend money on frivolous things will pay more taxes then those who spend all their money on necessities. I see friends and other people who make little money taking vacations, buying expensive jewlrey, going out to dinner a few times a week, etc., while I struggle to pay my mortgage and put food on the table. Because these people have more children and make less money, they can "afford" to buy these things! I paid approx. $16,000 last year in daycare and could only take about $500 off my gross income last year for taxes... doesn't seem fair

Feb 2, 2009 8:33 AM

Guest :

i love it!!!

Feb 2, 2009 12:26 PM

Guest :

I am flat broke. I developed a severe sickness and am now, after supporting myself since 18 years old am on disability.
Of course, drop of income and increased cost of living.
I still consider myself fortunate to have an income. However, I messed up when I transfered the small amount I had in my 401K and didn't think I would be taxed since all this "Disability" stuff was new to me. I was told by a few people, and I thought my income low enough, that I wouldn't be taxed. I went to the tax office at least 5 times and couldn't get helped after waiting from opening to closing. Only approx. 2 employees.
Now I owe the government because my meager savings are gone. I could not afford to pay in full the amount I owed and also got socked for outrageous late fee's even though I tried to get my taxes done.
I will not get any "Stimulus." I haven't been eligible for one yet.
It goes directly to Uncle Sam along with the payments that I have to "Pay to Make" every month. With all the surcharges, penalties etc., I will be ruined for at least 5 years struggling to pay this off and receiving NO STIMULUS.
I GET NO REFUND...GOES DIRECTLY TO UNCLE SAM...
WONDER HOW MANY OF YOU ARE IN MY SITUATION AND TOO EMBARRASED TO TALK ABOUT IT...
DON'T BE ASHAMED...IT'S A BUNCH OF CRAP...
WE BAIL OUT THE RICHEST IN THE COUNTRY AND TOTALLY, TOTALLY SCREW THE POOR AND DISABLED.

Feb 7, 2009 6:33 AM

Guest :

I believe the government can afford to give every American a 15,000 dollar mortgage credit to all home owners who are living in their homes and a 5,000 dollar stimulus for us as Americans to help with our financial problems. And most importantly, if the Government can bail out banks, and the auto industry who have basically screwed every American, they can at least help us out this time if they do nothing else. Besides we pay the government its money to bail out the rich why can't we use our own money to help us. With out us the government has no money. I wish that Americans can really look at the big picture. We pay the president, congress, schools, medicine, but we can't get nothing in return but bills, more bills, and higher taxes, and more bills. Government stop being greedy and think about the people who put you in office to do a pacific duty and that is to help US.

Feb 8, 2009 9:25 AM

Guest :

The only income my Husband & myself live on is our "small" disability checks received once a month. I agree (but very limited) to some of plan which the stimulus is to provide but I have not read or heard of any help for the people on disability. WE NEED IT!!!! Yes, tax cuts for us and lower paid working people is O.K.,but like myself, are these tax cuts going to provide me an extra check? I really don't think my state & city will send me a check stating "Here is the money you did not have to pay this year" That is not going to "stimulate" me to do a little more shopping. Disability was not a chosen income by husband & myself. So, personally to our U.S. government, you want all citizens to begin spending money? I need to have some to put back into our economy! You honestly can't do anything with nothing.

Feb 9, 2009 9:38 AM

Guest :

I know that Obama wants to help get jobs back and he wants to help companys, but my thing is, if you give company's most of the money to help produce jobs how are us Americans going to purchase what they are making when we don't have money ourselves. People are still struggling, and it seems to me that Obama can't get them to agree on anything.

Feb 9, 2009 2:37 PM

Guest :

First off, you have to admit that many of you lived beyond your means to wind up in this mess in the first place. Why did you need to work an 80 hour work week to begin with?? Was it to pay off the high mortgage or credit card bills you ran up? Maybe it was the vacation you went on that you couldn't really afford or maybe the new car you bought just because you were tired of the old one? For whatever reason it is tough changing gears from having everything we want to having to choose what is a "want" and what is a "need."
My husband is in the military and I am a part time Registered Nurse/ stay at home mother of two (soon to be three) We are lucky that our jobs are pretty much recession proof. It doesn't mean we don't get worried about things but I know I could hack it on salary if need be. I think the mortgage companies and banks that decided to approve loans and such to people who shouldn't have gotten them in the first place are the ones in the wrong and the rest of us are paying the price. Creating jobs is great but if you look at the stimulus package they will only be temporary jobs and mainly in construction. I live in San Antonio, TX and it is one of the top ten largest cities. It will only bring about 2.5% more jobs to this area and lets face it - that's not enough. This plan that Obama is trying to get passed costs more money than the 7 years in Iraq and Afghanistan together, and for what, a more economically sound vehicle for the house and senate workers to drive (that's really in the plan take a look at it)so that when gas prices are increased in the next few months it doesn't affect them. It won't be spent on schools (take a look at that part too.)
It is all a huge mess that I don't think we will get out of soon. I hope that Obama stops being so closed minded and listens to the suggestions of both party's and puts together a better package because the one he has now isn't good enough - I think the majority of the voters that voted for him really don't know how bad they are screwed just yet. I truly feel bad for the people that saved all their lives, were ready to retire, and lost it all - what will they do??

Feb 10, 2009 12:27 PM

Guest :

www.afb.org/blog/blog_comments.asp?TopicID=4349&FolderID=19

ssi check raise read here

Feb 11, 2009 1:33 PM

Guest :

Say goodbye to that $15,000 homebuyer credit :( Homes will continue to pile up.

Feb 13, 2009 10:29 PM

Guest :

I voted for Obama and campaigned on my own for him. After looking at the stimulus package, I only hope that he can make better decisions on it. $13 a week. Is this a joke? That's not helping us middle class people at all. We end up paying taxes on that at the end of the year. I don't understand our government. People are hurting, just like my husband and I who live on retirement. Have you ever eaten popcorn or a candy bar for dinner? Try it. When your electric company is turning off your electric, your water is due to be turned off, and no one in those companies care. "It's their job." You either pay those and do without food, or do without food to pay those. You see what we chose to do. I have two grown daughters with children and they are having a terrible time. I agree with some of the other comments concerning giving the americans a substancial amount of money to get them back on their feet. No politician has to worry about the every day worries that us lay people worry about. They should try it for a while. It's not fun. Just give the Americans what is do them, not a slap in the face with the projected stimulus payment.

Feb 25, 2009 3:58 PM

Guest :

I have been searching & searching to know exactly we will be able to apply for in the form of Mortgage relief, Student Loan relief, & exactly how much & when we will receive this stimulus Check.

Sound to good to be true, I wonder how they intend to get this money back. They are not just going to money in our lap & not have it affect us more somewhere down the road. I won't be cashing in my chip real soon on whether this was a good idea or not in the end.

Mar 16, 2009 12:39 PM

Guest :

I agree creating jobs is important but what about people who are out of work now how are we supposed to put money back in the economy when we don't hvae it to put in. We can barely pay bills and buy food. I think instead of a tax break next year on our taxes we should get a check like last year now. We all need money now we can't wait for years for the president to create jobs. Or have a tax cut and get a rebate check both would help. I don't know how much longer people can decide bills or food for your family.

Mar 19, 2009 6:06 PM

Guest :

ya know what, the rich is rich and the poor is poor, obama is not worried about nothing but being the first black president and making history. we are all americans and works our rear ends off and we get nothing but a hard time for living. we could have all gotten money to purchase a new car, well nope lets bail out the car industry and some people cant even get a darn car loan because they have lost their jobs, house and who know what else. people getting the loan to purchase a new car would have bailed out the car industry and help AMERICAN people. and what about all the money going over to other countries to help the sick, homeless and the poor, WHAT ABOUT THOSE SAME KINDS OF PEOPLE RIGHT HERE IN AMERICA????? i think the whole world is going down.

May 3, 2009 1:16 PM

Guest :

Money in our pockets would be a GREAT thing. But where would we spend it? Everything is made overseas, we wouldn't be helping out AMERICA! Creating jobs is what we need. Our taxes keep going up so states can afford to pay everyone unemployment. There are NO good paying jobs left in America. What about bringing American company's back over here. Charging Foreign company's high tax to sell their goods here. At least creating jobs gives us a chance to work and make our own money to circulate in America. Get the unemployment rate/payment down! Right now we need some kind of boost! I'd appreciate new jobs!

May 6, 2009 6:09 PM

Guest :

I just want to say that I need that stimulus money because I am unemployed and have 5 kids that go to school and there are no jobs in alabama everything is closing down and it is hard for all of us so I hope that everyone gets that second stimulus because we need it bad

Jun 1, 2009 12:15 PM

Guest :

I really HOPE everyone that voted for the first black president just because he would be the FIRST BLACK PRESIDENT are really happy with what you got.

Jun 5, 2009 8:35 PM

Guest :

The lady who posted a comment on feb 2, 2009 at 454am she needs to quit crying about paying daycare when her friends are out partying and spending their money on what they want. You had the kids you pay the price. And why should you get to deduct more from your gross income when the higher tax brackets don't get to? Should they have to pay more because your not smart enough to get a better job? Because they went to school and got an education which provided them with a better job? It's not fair in lots of cases. The laws are the laws quit crying about them and if you have that big of a problem do something about it and become a sentor higher your education and be better then everyone else until then keep your whining to yourself!

Jun 24, 2009 2:38 AM

Guest :

A couple of thousand a house hold sounds great, but it would make the american dollar lose value. That's why gas is going up "AGAIN"! I do agree that the households should get help. For instance, the money the goverment gave AIG! That could of went to "US" the people, instead of trying to bail out companies. The people would have invested back, instead of giving the AIG a break and a vacation!

Nov 3, 2009 11:47 AM

Guest :

All the money that was used to help Banks,businesses,and to help boost the economy and help people get somewhere was a waste. No one helps anyone I could not close on a brand new house for being $700 short in income they will not help no one being stingy with the money and loans. People need help and the government is the only help, we need to think about the people because we are the ones that keep the world turning. I just want to be able to provide for my kids and family, prices and people are making this impossible!

25 Comments