Obama Urges Congess to Stimulate Economy
Saturday November 15, 2008
Barack Obama (Credit: Ethan Miller/Getty Images)
Obama has asked Congress to extend unemployment benefits and create a job program. Obama's $190 billion stimulus package consists primarily of tax rebates to be mailed out in Q1 2008, which will spur consumer spending and boost GDP growth. It also has plans to reduce foreclosures, which will help the real estate market recover, thus helping banks' balance sheets. Democratic leaders have been pushing for more stimulus than the $700 billion bailout bill, which is designed to unfreeze credit in the financial sector. All measures are needed to avoid an even deeper recession.
Comments
When do you think that we can see the positive effects of these reforms? In short when is the economy going to start picking up?
Do you think credit cards are going to stimulate people (personal expenditure) to start spending? But isn’t that another form of artificial booster? like the sub prime lending when it started?
I think it will take a few months before the impact is felt throughout the economy. Economies are like a large ship – difficult to turn. However, the fact that Obama is being very clear and decisive about what he is planning to do is helping to restore investors’ confidence, and will help lessen the blow of this recession.
Kimberly