President Obama on Tuesday signed into law the largest spending bill in U.S. history, a package he pledges will save millions of jobs and bring the country back from the brink of economic catastrophe.
In doing so, the president marked a huge legislative victory less than a month into his term. He and Democratic congressional leaders won approval for the $787 billion plan late last week, despite having the support of just three Republicans in the Senate.
Obama said the package would not solve all the country’s economic problems but would signify the “beginning of the end” of the recession.
“We have begun the essential work of keeping the American dream alive in our time,” Obama said in Denver, Colo., calling the bill “the most sweeping economic recovery package in our history.”
He said the federal government will send unprecedented levels of support into infrastructure, education, research, energy, health care and state government. He pledged to enact the bill with an “unprecedented level of transparency and accountability.”
Senate and House negotiators met last week to strip billions of dollars out of the package — which at one point approached $900 billion — after both chambers passed conflicting versions of the bill. The final compromise measure passed before midnight Friday, meeting Obama’s Presidents Day weekend deadline.
According to Colorado Gov. Bill Ritter, the president chose to sign the bill in his state because of Colorado’s potential for renewable energy jobs. The stimulus package includes investments in renewable energy sources being developed in Colorado, including wind and solar energy.
The plan pumps money into infrastructure projects, health care, renewable energy development and conservation, with twin goals of short-term job production and longer-term economic viability.
It includes a $400 tax break for most individual workers and $800 for couples, including those who do not earn enough to pay income taxes. It dishes out tens of billions of dollars to states so they can head off deep cuts and layoffs. It provides financial incentives for people to start buying again, from first homes to new cars.
And it provides help to poor people and laid-off workers, with increased unemployment benefits and food stamps, and subsides for health insurance.
The unemployment rate is now at 7.6 percent, the highest in more than 16 years. Analysts warn the economy will remain feeble through 2009.
Republican lawmakers, meanwhile, largely balked at the economic package. It drew no GOP votes in the House and only three in the Senate, albeit vital ones. Many Republicans said it was short on cutting taxes and the spending measures didn’t target the vast sums of money well enough toward short-term job creation, which was the major goal of the bill.
But with the economy shedding jobs, there was widespread consensus in Washington for some sort of stimulus, and fast.
Yet the government’s action comes at a cost down the line.
Many private economists are forecasting that the budget deficit for the current year will hit $1.6 trillion, including the stimulus spending. That’s about three times last year’s shortfall, and such year-to-year deficits contribute toward a mounting national debt.
On Wednesday in Arizona, Obama will unveil another part of his economic recovery effort — a plan to help millions of homeowners fend off foreclosure.
(Source: Fox News)
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10 Responses
A big chunk are tax cuts. Nice. But at this point businesses concern deal with having any profits at all, regardless of tax rate. Citibank and GM, and its friends (not to mention companies like Lehman Brothers) don’t pay taxes since they are losing money.
There’s a nice chunk for relief, but that’s inevitable as no wants to cut the school year or open neo-Hoovervilles.
There is a chunk of public spending for a few odd pet projects, and a lot of things they would have to spend anyway (as if we would let bridges fall down waiting for funding), so it isn’t new spending.
I doubt it will reignite the economy. It probably won’t even stop deflation.
Where will this money come from? If the government just prints it ,there will be inflation.If we ,the taxpayers will fund it with higher taxes,businesses will have LESS to spend on capital improvements and salaries. Workers’,pay will just be taxed more. So,where are the economists who can explain how this will help? The stock market did not react favorably.
OBAMA’S STATEMENT, WHILE SIGNING, INCLUDED THE PHRASE: “THIS IS THE BEGINNING OF THE END!”
DID HE REALIZE WHAT HE WAS SAYING?
Obama signed a stimulus bill to stimulate a depression, Rachmona Litzlan!
Obama said, “What I am signing, then, is a balanced plan with a mix of tax cuts and investments. It is a plan that’s been put together without earmarks or the usual pork-barrel spending.”
Ladies and gents, allow me to say the manchild is a BIG FAT LIAR!! Anyone who voted for him was duped and the president should be sued for malpractice.
Let’s not forget, Obama’s own VP Joe Biden, in an unguarded moment said “this only has a 30% chance of accomplishing anything”. When asked about this at his nationally televised press conference, Obama had no viable teretz !!
To all the frum yiddin….you will just have to accept the fact that the president of our country is someone that you dont like. maybe if you read reliable news sources, you would recieve real news….
#7,
You are once again drinking the liberal kool-aid. Can you tell us what your favorite flavor is so that we all know?
Congress was controlled by the Dems or non-conservatives. Granted Prez Bush wasnt a CONSERVATIVE when it came to spending. We also have to realize it costs a lot of money to (derech ha’teva of course) keep us safe. Slick Willy was busy with cigars and Carter where all this “everyone could buy a house” mishigas came in was busy doing nothing for 4 years.
When the Republicans were screaming in 04 about the loan issues barney frank was saying how good freddie and fanny were. I dont know what he had with fanny but I could see what it would be with freedie.
I wont tell you the republicans were totally innocent but the dems were WAY more at fault here. I hate to interrupt your fiction with FACTS but someone has to do it.
The Spendulus Package wont help because there is not enough tax breaks to the people who need it. You CANT spend your way out of oweing money and if you think so, I need your credit cards since mine are maxed out. I’ll just spend more and it will all work out. If the dems were REALLY interested in stimulating the ecomony they would have cut taxes – perhaps cutting the Federal taxes in half for a year or so just to get business spending again. Of course they were only interested in getting govt bigger so why bother with things that HAVE BEEN PROVEN in the past.
The 3 RINO stooges would have voted for the bill anyway no matter what was in there. They are not true republicans and they will lose their seats in their next election.
One more thing charliehall, if the Porkulus Bill was so important to “stimulate” the economy why is is that most of the stimulus wont happen till 2010 and 2012? One of the reasons they hustled this bill through is that they know, at some point, the economy will recover. They want to be able to give the stimulus, and thus Obama, credit for it. Also, they wanted to get a bunch of garbage passed into law before anybody could see it.
In the meantime, keep drinking the kool-aid.
COMMENTARY ON THE “PORULUS” PLAN, by Alice In Wonderland:
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to,” said the Cat.
“I don’t much care where –” said Alice.
“Then it doesn’t matter which way you go,” said the Cat.
“– so long as I get somewhere,” Alice added as an explanation.
“Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.”
#10: i enjoyed your comment 🙂 thanks