As President-Elect Barack Obama prepares for his time in the white house, one of his major concerns of course is the economy. As the economic news begins to look bleaker as the months pass, Obama is hoping to stir the economy up by injecting an economic stimulus package of over $775 million over the next two months. His plan is supposed to bring stability to the economy and spur spending, as well as help struggling families. It is important to look into whether or not this type of economic stimulus package will take an effect on the economy in the intended way.
This looks very similar to FDR’s plan to reinvigorate the economy. This is because many public jobs are being cited as a great way to improve the economy. By adding more public works jobs many Americans were able to get jobs provided or funded by the government during the great depression. This created jobs during a down economy and the unemployment rate dropped.
The FDIC was created. The FDIC was created in order to instill trust back into banks. Thankfully most banks that went under were FDIC insured and most Americans were able to collect their losses.
This plan will only give short term gains for the economy. As we saw in the last economic stimulus package, most businesses didn’t make gains. In fact many businesses still continued to do worse even after the stimulus package. Many people didn’t buy into new products, but as mentioned earlier, saved the money. I am worried that many Businesses will see the same thing happening during a down economy.
It is my hope that the economic stimulus package will help bring the economy back. It has been a frustrating year end for many Americans. Hopefully, 2009 will be a very bright future.
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