$850B stimulus plan

[moneysense]

Obama is laying the plans for an $850B stimulus plan to be given out over a two year period. Although a grand total has not been settled on, but economists have recommended spending a similar or even larger amount.

Harry Reid, D-Nev says that it is a good possibility that Obama will get to this plan within 2 weeks of taking office.

Obama is also promoting a recovery plan that would cause more spending on roads, making government vildings more energy efficient, and building and renovating schools.

Obama is also pushing for tax cuts for the middle and lower income tax payers. But that there would be no tax increases for the upper class tax payers.

Obama also wants to seek funds for food stamps, health insurance, unemployment insurance and job training programs.

[carol b]

That is great news for those who have so little to live on. There is a great number of people who are currently unemployed and need all of the help that they can get.

I am concerned how ever where the money is going to come from. We have heard economists talk about the fact that we are borrowing large amounts of money from countries like China.

This stimulus plan should be better planned than the last one and should benifit the country more fully. As the last one had everyone frightened because of the statements that were made about paying it back during the tax season. It currently doesn't appear that this is going to be the concern this time.

[moneysense]

I have to wonder how much this stimulus will help the economy though as the money given out has to be spent in order for this to work properly, and with so many people having money issues now, I dont look for most of it to be put back into the spending situation the government is looking to happen.

I think that there will be a lot of people that put the money aside for even harder times that may be coming. With the overall economy being so iffy, people are hard put at the present time to give up what cash they do have.

Plus, if you owe any back taxes, this money will be kept and applied to those taxes. So there will be those among us that wont get any cash at all. Therefore those people wont be spending the stimulus cash either.

This seems to be a lose-lose situation in the long run.