You have read the story on Japan's stimulus plan and have analyzed the House and Senate versions of the American stimulus package (see the post below this one for the links).
My question for you:
What should America's stimulus plan focus on and why? If you list more than one area, prioritize them and explain your ranking. For example, if you believe building roads is the top priority, explain why and so on with your other choices. Also, feel free to include any ideas not addressed in the bills.
Your responses are due by midnight on Tuesday. Have fun!
31 comments:
I think America's stimulus plan should focus on aiding the unemployed and homeless. I think thats the most important because I think that we should help the ones that have fallen off there feet before helping ourselves.
After reading the in-depth NY Times article on Japan's economic conditions and their challenges of past and present- I feel that their situation possibly shed more light on our current economic state and impending stimulus package, as far as what areas of spending may prove to be most effective or ineffective, for us here in America.
Being the furthest thing from a noteworthy or knowledgeable economist by far (LoL), prior to reading this article I wouldn't have had the slightest idea as to how to answer this question with at least a shred of what I believe to be an educated guess....However, now I will try to make a stab at it.
Just from my own thinking first, I believe that any investment, regardless of being federal in scope or on an individual basis, should be one that will produce the longest returns in result.
Take higher education as an example: We as consumers, parents and students alike, shell out large sums to top dollar to provide our children and ourselves with the best educations within our means to ultimately result in quality job choices upon graduation. We make that investment each semester for four years sometimes by the skin of our teeth, or just plain painstakingly in nature, because we know that the return will be highly worthwhile- if the effort put in is equal to or higher than that of the actual monetary investment. (ie: Honors or Dean's List GPA, top ranking in class percentage etc...= coveted salaries post college)
In the lines of that same philosophy, I believe that investing in the "engine" that runs us as consumers is extremely necessary as well. Purchasing items on credit and making timely payments makes for a positively cyclical return on our investments in the form of sustained and raised credit standings.....As does going to work everyday (being employed) and paying the mundane bills that house us, (mortgages) keep our lights on (electric), drive us (car notes & insurance) and keep us well (health insurance).
So I'm saying all that to say this:
Banking, education, and job creation are the areas that I feel are most important in our economy right now, and in that order they should be handled and prioritized equally.
In the paragraphs I stated above, I gave a short reasoning for these sectors of our economy being important investments and high on return. However, the article only reinforced my thoughts. As pointed out numerous times by Fackler, Japan made mistakes by overspending on needless construction of roads and such, when more should have been spent on education and the banking/"engine" of consumer spending, which would have produced longer and higher returns.
In the articles that briefly highlight the intended spending in the various sectors, I see that there seems to be a lot of spending across the board. I'm being faithful in my assumptions that the Obama administration will have its values in the best interest if the nation and our future as a progressing people of economic prosperity in its decisions.
-Alexis
I'm being faithful in my assumptions that the Obama administration will have its values in the best interest *of the nation and our future as a progressing people of economic prosperity in its decisions.
-Alexis
(*typo in previous post)
I also just wanted to clarify that when I said "banking" previously as the number one priority, I was referring to spending. I often think of the two being synonymous at times...(because in order to have a well running banking industry, spending must be at the forefront everyday to maintain that industry..etc.)
So yes, increased government spending is what I meant to be the first priority in our stimulus bill, followed by education and job creation.
Sorry for the 3 posts :o(. Thanks.
I'm not to sure I can follow up the post before mine... but I shall try ha! As far as this stimulus plan goes I still am finding it hard to grasp onto all of the concepts. It is all very confusing me even after reading all the articles.
After saying that I would also agree with Henry about helping the ones with out jobs, and the homeless. That would be my first priority followed by finding a way to take money away from the people who were given money for doing "a good job" and find somewhere for the money to go where it would possibly do some good!
-Corey N
As stated in class. We need to stop the bleeding from the current recession we are in. I think we should focus on getting money into the falling real estate market. We need to make buying a home easier, and more straight forward. As mentioned in class, maybe a morgage for a longer period of time with a fixed interest rate?
Im not a genious but some plan that does make housing affordable and fair. Another place where the focus of the stimulus plan should be using money to get people spending again. If people are willing to spend, its fuel for the economic fire. We have to try to get people investing and spending again. Maybe implementing new ideas on investing and spending to get people feeling more comfortable about their money.
When i read this question I thought it was ironic that you used the example of "fixing bridges and roads." I have always hoped the government would provide more funding for bridged and roadways, until now. I feel that since we have hit these tough economic times that needs to be put on hold.
As far as the stimulus goes I feel the stimulus should focus on taxbreaks for middle class workers. According to the Huffington Post 40% of the stimulus is aimed at tax breaks for businesses and middle class workers. I would like to see how much of that 40% is being directed toward businesses and how much is being directed toward middle class workers. I am afraid the figure i am searching for might be lopsided in favor of businesses
I also think we need to create stronger regulations on banks for lending. It seems as if they turned a blind eye to those seeking loans who couldnt afford them. I feel stronger regualtions such as penalties against the companies lendning irresponsably would reduce the possibility of this problem again.
In relation, One thing I fear this recession might cause is the government taking money away from those who are more wealthy than most Americans. I feel those who work or have worked hard during their life and have made a substancial living should not be punished, even though there are many wealthy people who have no difficulty bringing home the bacon. While we do need to help the lower class we shouldnt punish those who have worked hard for their money.
-Ryan Crowley
Well America needs something to motivate spending because capitalism is dependent on consumption.SO the question arrises, how do we get people to get the money to spend....? Ensuring jobs and money to struggling businesses is what needs to happen. I'm not an economist by any stretch of the imagination but I think that creating jobs here is also crucial. For example, lets start making the products that we are going to consume here in the United States instead of overseas. This will create jobs , which will employ more people, which will lead to people having money ,which will then ultimately lead to consumer spending.
I’m going to have to agree with Kristie, in order to get our economy up and going again we need to increase consumer spending. For consumer spending to increase people need to be making money, which means they need to have jobs. A good deal of the stimulus package should go back into finding/making more jobs here in America, rather than overseas regardless if it is cheaper or not. Once people have jobs and feel secure again than money will be shed on consumer products that essentially make our country so successful.
I would also invest a good deal of money into education. It is ridiculous how expensive it is for young adults (or anyone for that matter) to get a quality education. Some students who are highly qualified can’t make their way through college because of all the expenses that come along with getting an education.
As a student, I am still learning about our economy and exactly what brought it crashing down. Even though we have been discussing it in class, I’m still having a hard time wrapping my mind around it, let alone thinking of ways to fix it. However, I am fully aware of the obvious problems we are facing and feel they should definitely be part of the stimulus plan. Rhode Island’s unemployment rate is at 10%, so maybe if we provide large tax cuts for small businesses along with the middle-class we will see improvement. Obviously, spending is necessary to stimulate the economy (that much I understand). I also feel that building roads and bridges to create jobs is not the only area we should focus on. We should be creating jobs that deal with the environment, such as new forms of energy.
What should America's stimulus plan focus on ....
I believe that America should focus on bringing the unemployment rate back to a low number. Right now people are loosing their jobs left and right and without those jobs people are not making money. To help with the economy people like us need to spend money ( Consumer Spending) without us to put that money back into the economy, the economy will not grow and progress. So I believe that if we make more jobs and help to employ more people, instead of saving their pennies so they can afford the houses that they live in and the food that they eat, they will use that money that they mak and put it back into the economy by shopping at businesses
Nicole Agnew
1. Labour- Provide money for projects which require raw materials, durable goods, engineers and a workforce of US civilians. This includes but is not limited to:
-- Updating and repairing roads, bridges, railroads, airports, etc. As well as expanding public transportation systems, especially light rail which has seen enormous success across Europe and dozens of North American cities like Toronto, Portsmouth and Boston.
-- Reengineering our energy grid to be more efficient and secure, which can reduce long term costs exponentially. This also includes taking coal and oil plants offline and putting more (and smarter) solar, wind and geothermal plants online.
-- Expanding information technology and making it open-source. This requires a national program of developing, producing and installing both hardware and software across the country. A smart policy on this issue can double access to information while halving costs for business, education and individuals.
2. Social Relief- Privatizing social services relies on a ultra-productive capitalist economy. And when that fails, the people on top who made the calls aren't really worried about what happens to those of us on the bottom. Why risk social well being to corporate gambling.
-- Nationalize healthcare. Employers can't afford it. Individuals can't afford it. The government must put the healthcare industry back in its place and mandate that it serve the population.
-- Nationalize education. Anyone who can manage to make it to college leaves with thousands of dollars in debt, and needs to begin life in the working world "deep in the hole" and needs to borrow EVEN MORE to move forward. America is the only first world country on the planet that exploits its students this way.
-- Repairing, improving and if necessary purchasing and managing distressed properties. Most people are evicted from their homes because the banks take over the property and are simply not interested in collecting rent or mortgages from tenants. The federal government must either force the banks to collect rent, or take over the properties and establish servicing companies to maintain and manage these properties.
3. Bank Relief - Banks were more than happy to take the stipulation-free relief package the first time around. Now they're saying, "Thanks for the cash, but you don't get to tell us how to manage our money." Which means those tax dollars have paid salaries and bonuses, and the rest has been consolidated as savings.
-- Support local banks and credit unions. Typically speaking, credit unions are locally owned and managed and are beholden to their customers in a very different way than national banks. If any money is go to banks, it should first be dealt out to smaller banks which are much more likely to invest in local projects, homes and businesses because they are concerned about their communities.
Projects and relief need to be multi-dimensional.. providing an immediate demand for goods, services and skilled labour while laying out a long term goal to reduce dependancy on privatized sectors of the economy which are driven by green and exploitation and prone to failure and corruption.
_Ian
I think the stimulus plan should focus on Education as it's top priority. I was fortunate enough to go to a school where the supplies were plentiful. Not all schools have this chance for funding especially in arts and athletics. Those are the first to get cut when the budget gets tight. Also focusing on keeping more teachers in the classroom, this will help keep class sizes down. The more teaching opportunities that are given, the more jobs will be filled. The smaller the class size, the educator can give more personalized help to each student. If the stimulus plan could go towards help-katie-pay-for-a-new-drumset, i would be just as happy! However, I think focusing on education would make America happier.
The American stimulus package should consists of both long term and short term changes. I think the first thing that our economy has to work on is creating jobs. One way to create more jobs is rebuilding our infrastructure. Even after reading the article about the Japanese economy I still feel strongly about rebuilding the infrastructure. Mainly because we are not Japan and we need new roads, highways, and airports, etc. I think that this is a short term change that will create jobs and stimulate the economy.
The Government needs to spend money and create jobs. Creating jobs is not enough. If people have new jobs and more money they need to spend that money.
Another short term solution would be to lower taxes for people in the lower income bracket. People are having trouble paying for their houses and food to survive.
A long term solution would be putting money back into the school system. Giving students more resources outside of the classroom. I think the education system needs to have stronger curriculum in classes like science and math. I think that we need to become a more innovative country.
I am no expert but from reading over the Democrats Stimulus Package I feel that the money has been divided accordingly and there is a plan in action. Many of the things I mentioned are in the package and I feel hopeful that Obama can and will pull us out of this economic crisis.
I think the stimulus should go to getting the economy back up. Honestly, I don't know how or where that would entail sending the money. However, I also think businesses need to change their ethics or lack of and treat their employees with fairness, care for the environment and how it affects the earth, and overall just improve on business standards.
Also, I think it is very important to improve education. Let's get back art and music programs into public schools where they have been cut. Improve education programs in inner cities and make it more equal of an education between private and public schooling. Not to sound corny but our children are the future and what we teach them will carry on long after our generation is gone unless the world does end in 2012, ha ha.
The environment should also be a major concern of the stimulus plan. We need to improve how we take care of it, meaning more funding into hybrid cars and alternative energy methods.
Before reading the article on Japan, I never thought that spending money on building and improving roads and bridges could stimulate the economy; however, it makes a lot of sense. As the Hoover Damn did previously, I would like to find a major construction project like that, which would create massive jobs. Or maybe even go back and fix some of the major construction projects of our past that turned out problematic (such as the “Big Dig” in Boston). I’m sure if we look hard enough at every state we can find at least one bridge, tunnel, etc. that has been built wrong and need to be fixed. This would be my first priority.
Secondly, I agree with some of what Ryan C said. A huge amount of the stimulus plan should target the middle class. An economy is fueled by the middle class. If we can find a way to expand the middle class and make it possible for the middle class to “survive” in our economy, I think the rest will fall into place. Our economy suffers not because the rich isn’t spending. It is because the middle class can’t afford the anything but the necessities. This is why tax cuts to the rich have failed in the past! If we can give the middle class jobs, tax breaks, affordable health care, and education, our economy will stabilize, not just in the short term, but in the long term as well.
I think the stimulus package should focus on fixing lower class communities and repairing neighborhoods that have been deeply affected by this economic downtown. As the old motto goes, you're only as strong as your weakest member. We need to fix things from the ground up. I also agree that education is very important and also a huge factor in the lower class community setting. If the kids in these areas had better schools to go to learning would be more entertaining and there would be a significant improvement in the graduation rate.
Dan Rendine
I agree with the plans that should deal with problems now. I may get some heat from this but this one's a certain opinion. Since I feel the media is a huge market in our society and the economy thrives on us buying things, I feel these two entities should merge to save us. If you got the media sending out messages that it was alright to spend money again, this may help, since many things are impacted by what we see/hear, especially on the television. If we do this there may probably be a bigger demand for jobs and the unemployment rate could be lessened.
-Zachary Hynes
I don’t believe I can firmly choose one plan that would help our economy the best. I believe in free enterprise, where as a person tasks a risk and if the project fails that persons fail, but if it is a success than that person should reap all the benefits that’s come with that risk that person took. However, looking at this situation this way is taking a micro-economic look at our current situation. Our biggest problem with our current situation is that not every citizen in the United States is an entrepreneur, a vast majority our employees of the entrepreneur so they are now dependent on what risk their boss will take. With that in mind when the risk does not pay off than a whole company that employs hundreds of employees will suffer.
So should this stimulus package really go to companies that have failed, well in the “micro” state of mind the answer is no. But when there are hundreds of thousands of people who cannot fend for themselves because there have always been dependent of their company, and in the “macro” state of mind will have our whole economy suffer because of it then the answer is yes. So now the new question is whether to take a conservative approach or a more liberal approach to this stimulus package.
The conservative approach would have you inject government funds in the economy quickly. Putting money in the project that would employ citizens as fast as possible and then stop the funds as soon as the projects are finished, they believe higher tax cuts where big business will have more cash to make investments in project and in employees. This trickle-down system works beautifully in theory, however with human nature that is greed, a real person will hold on to the most money as possible and invest only when needed. So in the end the money trickle-downs very, very slowly; not fast enough to make the significant change we need now.
The liberal approach will have the stimulus package invest into projects that will help the country in the future. Mainly the idea of investing into the education system of our country, this is absolutely great. You cannot go wrong with have each generation being more educated than the previous. However with this investment, when will the country see its returns? Maybe ten, fifteen years from now in some instances. So will this really help our economic situation now? I don’t believe so. Therefore, we are back to square one, where do we invest the stimulus package.
Now obviously, having a diverse portfolio will always have great returns in any investors account. With the investors being the American citizens and our account will be our economy where do we put our money. I going to take probably a different approach to place our money somewhere that is a major concern to many citizens but I really can’t recall hearing it being a major topic for the stimulus package. I would first invest the money into the healthcare section of our economy. My idea behind this method is to insure that we have a strong healthy workforce once the jobs start coming. My next place is the infrastructure of our country. Mainly in the repairs of current roads, then we will see if there is a strong need for new roads. We don’t want to end up Japan with bridges to nowhere.
My next place would be education because we definitely want future returns from our investment. The better educated our future generations are the better chance we will not be in the current situation again. The final place I would have our stimulus package effect is taxes. I do believe will lower taxes will eventually have great effects on our economy, but these effects will not be seen immediately so that is why we cannot be the first place where we consider putting our money. Technically we are not even putting our money into tax cuts either. What we are doing is taking away from the potential revenue that our government would see; so we cannot go without revenue when we need the money to invest into the healthcare, infrastructure, and educational systems first.
To be honest like many others on this page I do not really know the best way to spend the money for the stimulus plan in the United
States right not. I really do not even think that anybody has the perfect solution, and if they did, nobody would believe them, and two I just dont think it would be possible.
After being told by another professor that our economy probably will not be put back into shape for another 7 to 8 years i feel it is kind of scary no matter what path we chose to go down for the plan. But since I have to make a decision I guess I will list the three main important things I feel should be considered thoroughly.
The first thing is without a doubt the unemployment in the country. The United States has created something like 17 million sifferent jobs for its citizens in order to build capital in it. Comapare that with Europe which has only come up woth about five million. There is always things that need to be done in the country, and I am sure as heck people today are willing to do it to get money. Without people getting that money from their employers nothing will be bought. Therefor keeping the status of the economy the same since we learned how much consumerism does.
Second, I would definetly fix the educational systems in America. I feel as a class we just skimmed the reasons why and it obviously was clear we need some help here. I feel it is long term consequences of this that will be met successfully. An educated person will for sure obviously benefit the economy.
The last thing i feel is important to add to the stimulus plan has to do with health care. The health care in this country yes is better than in some others, but it is not where it should be. I personally have felt the effects of this with me own healthcare bills and it is phaysically impossible to conquer them on your own with a students salary. I was told by somebody that there was a NY times writer who was an economist and he has a great plan. The plan was that each person as the turned 21 years old would get $10,000 in their name in an account that they could not touch only for health care from the gov't. That would cover a lot and about every ten years they would get another couple thousand. I do not knwo the actual math of this proposal but i sure do want to look into it further after this post.
I think the economic state of this country is definetly scaring everybody and has had eveybody thinking latley. Though it was a slow process with the banks loaning the money to its homeowners I never really was aware of what was happening like I do now. I do know that nobody has the perfect solution because it would be of course fixed already.
In my opinion in order for this new stimuls plan to work effectivly you must create jobs for your citizens. This above all is what needs to happen. What everybody else has posted of course I agree is most defenitly important for a better country yet eveything starts with money. You need money exchanges in a country for it to survive. If the citizens are not spending any money of course then the markets are going to fail. In order for goods to be produced they need to gain revnue from its customers to produce more. Without jobs it is of course impossible for people to get money. There you have it if no work places are providing work for exchange of money there will be no money exchanging between companies. It is a big vicious circle that needs to be corrected from its roots in order to be boosted back up. Spending and buying creates economic wellness.
I am still a firm believer that education is the biggest thing that the stimulus plan should focus on. I also think that the energy issue should be focused on along with the education issue. these are both things that will have long lasting effects. I don't think that this country just needs a quick fix.excuse the analogy, but this is the best way i can think to word this: if a tire on your car had a hole in it, you wouldn't just plug the hole with gum then hope it holds for a while. you would need to replace the tire, you need a long term fix, that should last a long time. this economic crisis is a big hole in this country's tire. the country needs a new tire that will last a long time. things like helping the people that have been laid off should not be exactly put on a back burner, but i think that the stimulus package should focus on more of the long term issues, than the "right now" issues, so that this crisis doesn't happen again.
I think that the stimulus plan should focus on infrastructure. This is a broad area but I believe it can result into a succession. The problem is that people are unemployed which is the major issue why our economy is hurting. Without an income people cannot afford mortgages and certain consumer goods which stimulate the economy. By using the stimulus plan for infrastructure we will be creating jobs for businesses that are relatively slow, and that have laid of many employees. This can create jobs for engineers and construction firms. However, I realize that these jobs would not put everyone back at work just some that are in selected professions.
Basically, we need to focus mainly on putting Americans back to work because this is the reason why our economy is dropping. Without jobs, people are not able to buy consumer goods at stores which is resulting these businesses to go bankrupt and lay off their employees. Without jobs people are not able to pay for their homes, forcing banks to foreclose them. Money really is everything, and without it you won't have anything. If this problem is resolved (employment) I feel that the economy will be able to rise out of this slump.
I am still very torn on the subject since I'm still trying to grasp what is going on, but I think the money should go towards building more jobs. So many US companies have outsourced their labor because it's cheaper but I think the jobs should remain here. It is a good investment in our economy to produce goods here and provide jobs for citizens. People might then put more money back into the economy and be able to get out of debt.
I also think money should go towards national healthcare. There are so many people in this country that are without affordable healthcare. I also believe in investing in education because this is our workforce and our future. Everyone deserves a great and AFFORDABLE education.
Overall, I think the stimulus plan is good as is, either verison. The differences are minimal and my limited knowledge can't decipher what actual difference one can make over the other.
I think maybe infrastructure spending can be minimized according to Japan's experience. Depending on what exactly the money will be spend on, could harm or benefit us. If we build roads to nowhere then I'm against it. Otherwise I'm all for it.
I think our Energy investment is smart. I'm really digging that idea for long term as well as short. It will create new technology jobs.
Providing money to those that need it most will also bring a boost to our economy so I agree with those decisions as well.
If I could add one more thing to the bill it would be maybe on the legal end, if possible. I would like to see that the people and companies that were responsible for the sub prime mortagages, be held accountable. One thing we do little of is stop corporate criminals. They gained their wealth & got out before being deeply affected, financially. There should be people in place to impose fines to eliminate if not reduce the same problem in the future.
If we could dig in the pockets of those companies and individuals and make them pay for their mistakes, it would help to further boost our economy.
I have paid plenty of parking & speeding tickets to help in my community. Why not apply the same rules to those with deeper pockets.
The current ideas with my newer ideas which can be used for two more installments of stimulus packages could get us out of this mess. Or at least I would like to think so. =]
-Blue
Whew. What a question.
If I were in the Oval Office, (instead of the cramped one that I share with Nigel) I would focus all of my energy on recovering the economy and there are 3 key areas I would focus on first. I think that President Obama's plan covers two of these.
1. Tax cuts - In the 1980's when the economy was also sagging (albeit not this bad); President Reagan called for massive tax cuts for the people who made the most money. The theory was very 'American' in the way that he assumed that the affluent folks would use the money to re-invest into their business, thus giving people more jobs. In today's world, I feel as though tax cuts are still a key tenet in fixing this economy. However, I would give them directly to the middle class this time. This will act as an infusion of cash into the market. Some folks would invest, some would spend, and some would just save. All three of those options help a weakened economy. Spending gives money to the people making the product, or providing the service you purchase. Investing boosts the market, and saving gives the banks more cash that they can lend. Tax cuts to the middle and upper classes would be number one on my list.
2. Increase Government Spending in the following two areas:
A. Public Works - I would strengthen America's roads, bridges and infrastructure. I would not necessarily build new things, but improve what is already there.
B. Education - More people going to school means more people getting good jobs in the future. These people would be able to have jobs in the future as opposed to right now. Also the people fixing up school buildings etc would be employed.
3. Finally, I would focus on winning the war on terror and increase defense spending. "What does this issue have to do with the economy?" History should tell us. There are three major recessions in American History that I am aware of. I'm not saying that they are the only three, but they are the only ones that I know about. They are The Great Depression, the recession in the late 1970's/early 1980's and the one today. WWII was probably the biggest "helper" in getting us out of the Great Depression. Regan's commitment to winning the Cold War and outspending the Soviets on defense played a major role in ending that recession. And that was without any shots fired.
Creating new defense technologies and building tanks and planes and other things for the military creates jobs. I am not sure if this is in President Obama's plan, but it should be.
These plans lack many specifics, but I would leave those details for the people smarter than I. But this would cover the broad strokes.
~~CEB
Short and simple I believe that the main focus of the stimulus plan should be spending on the bad mortgages. Seeing as this was one of the two or three main reasons why the recession happened, it just seems like a logical step for a place to start the spending - of coruse an argument could be made for almost any the highligths of the spending. I could have tried to make these arguments as well but the first thing that came to mind was the bad housing market.
Oops, I forgot something.
I would also fix the housing mess that triggered this crisis. I would ensure that the sub-prime loan mess that was 2002-2008 would never occur again. I would build some safeguards into the mortgage market making sure people could afford what they were getting into. I would impose stricter penalties for predator lenders, and I would again, turn to some experts for more detailed policy. But fixing that issue would be high on the list as well.
~~CEB
Like some others, I am just beginning to educate myself a bit more on this topic since being enrolled in this class. Also, like at least a couple of my fellow students have mentioned, I do not fully understand everything that is going on with this economic crisis. From digging deeper into this subject and reading up on it a bit more I can see that this is a vastly complicated subject with numerous facets... So, I can only give this my best shot.
That being said, from what I can understand, it is my personal opinion that a top priority of any government stimulus package should focus on restoring the health of our country's job market. By creating jobs and lowering unemployment, I feel that a few birds can be killed with one stone. For one, as previously unemployed people get jobs, and those that were worried about losing their jobs see that they have more job security, they will slowly begin to spend again. As people begin to spend more and more, our economy will get more and more stimulated.
Average consumer spending will do enough to stimulate our economy, even if it is just by a little bit; any stimulation is good stimulation. However, the creation of jobs can create stimulation in several areas. For example, as I mentioned in my post last week, and Alexis mentioned this week, people will be more willing to spend money on higher education if they see that they are more likely to see a return on their investment (i.e. getting a job). If our nation's unemployment rate continued to rise people would start becoming even more hesitant to spend money on, or take out loans to pay for, college.
In turn, attacking the problem of unemployment in a stimulus package has more that one positive effect. People will begin spending more on an everyday basis, they will be more willing to spend money on higher education which can also stimulate the economy, as well as other effects such as helping to revitalize the real-estate market; as people begin making and saving more money from newly created jobs and increased job security, they will be more able and likely to decide to buy into today's market.
For these reasons, and I'm sure there are even more that I'm unaware of, I believe that attacking the problem of our nation's unemployment would be a great place to start for any government economy stimulus package.
-Pete
Better (really) late than never, I suppose. I think more than the homeless and the "poor," the stimulus plan should help focus on getting people out of serious debt. If people can resolve their debt, they can resolve their credit situation which makes their financial life much easier in the long run.
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