Capital Commerce

Barack Obama: How He Will Spend $600 Billion on Stimulus

December 11, 2008 RSS Feed Print

At least this is the best guess of Alec Phillips at Goldman Sachs, who figures a $600 billion stimulus package over two years. These are numbers for the 2009, $350 billion installment:

1) Transport-related infrastructure (rail and highways): $45 billion
2) Traditional non-transports infrastructure (water, schools): $30 billion
3) Non-traditional infrastructure (broadband, green energy):$57 billion
4) Benefit programs (extended unemployment, food stamps): $29 billion
5) Aid to states (Medicaid, block grants): $60 billion
6) Tax-related stimulus (credits): $130 billion

Me: Interestingly, Phillips assumes that Obama's middle-class tax cut will be for just 2009. Zippo for 2010. Also, he notes that most of the dough for what he calls the "high multiplier" items -- infrastructure -- will be spent in 2010. "While infrastructure is likely to be largest item in any stimulus package, the majority of these funds are likely to be spent in 2010 given the limited amount of “shovel ready projects." So much for next year, I guess. And again, the lack of major tax cuts just screams out at me.

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I am 56 years old and my Husband is 62 we barely eat after paying high elec. bills and rent. We are unable to get all of our med's and we are diabetics and I am on Insulin 5 shots a day. we need food that is sometimes fresh and fruits we never get fruits or fresh veg. Our rent is high and we have no car because it is gone. If the President Obama could look into helping the seniors and the poor people it would be a great thing. We have a lot of medical problems and the doctor cannot give us what we need in their office that is free but we get one some months and not the next. Social Services said we make to much to get the help we need./we go to the food banks to get food and it is sometimes way out of date and it is bad. At least we eat and are warm so we can not complain.But I know there are a lot of people out there that is not well off either. It is very hard being older and living in a cold house,not much food to eat,and no transportation unless you nag your kids for a ride. I don't mean to complain but I am tired of trying to make the money go farther than we have. Sorry for complaining but you will be there one day. Thank you for being a sounding board.

j. Russell of DE 3:07PM January 25, 2009

All those out of work auto workers and the thousands of small business workers that supply all that the auto workers merely assemble in the assembly plants were once taxpayers (with all that supposed big money they used to get paid).
Their tax money will no longer be available to help the remaining taxpayers foot the bills.

HillbillyBill of TN 8:59AM December 12, 2008

EVERYONE is missing the boat on how to stimulate the economy and vacate this recession, especially Congress, the President and lawmakers across the country. While it is NOBLE to try to save failed companies or industries because workers would loose their jobs, it is COUNTERINTUITIVE to rescue these failed businesses and reward them, bail them out with hard paid TAXPAYERS monies. Why? Because the top exec's who have run these failed companies for years don't have a clue about why they failed in the first place and less of a clue on how to turn their companies around. As long as they collect their zillion dollar salaries, bonuses, golden parachutes, pensions, etc. they are happy. Saving these companies is wasteful since they will continue with “business as usual” and ultimately FAIL. This is the “Band Aid Effect” and short term help which will end with long term bankruptcy. So this money is definitely wasted.
Putting monies into new technologies (solar energy, electric cars, etc), initiating Government public works projects at the federal levels for schools, roadways, bridges, tunnels, extended unemployment, food stamps, Medicaid, block grants, etc. are all necessary, vital and needed. However, these efforts will help certain segments of the American populace but not ALL Americans.
The lifeblood of our economy is based on supply and demand. Americans always buy the best products, goods and services, etc. To be pragmatic, fair and assure that all Americans are “aided” during these difficult economic times, a major portion of the taxpayer “BAILOUT” monies should go back immediately to the American taxpayers. Congress should allot a lump sum for distribution to American taxpayers. Anyone who filed federal tax returns for 2007 would receive equal distributions of the designated “lump sum: amount. These monies would stimulate the economy by giving everyone the ability to pay their real estate taxes, make mortgage payments, buy real estate, put food on the table, buy cars, pay bank loans, credit card debt, college loans and tuition, etc. This would invigorate the US economy immediately. No doubt about it.
Right now, the American taxpayer is being forgotten. Taxpayer money is being used to restore Iraq and aid foreign countries. Now its time to give something directly back to the American taxpayers.

Richard Antoniotti of NJ 11:17PM December 11, 2008

Barack Obama: How He Will Spend $600 Billion on Stimulus

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