On February 17th, 2009, President Barack Obama signed for a $787 million stimulus that is intended to help “all” Americans. This bill comes from all the remaining money in our tax cuts and government spending. President Obama believes that the stimulus will add growth in the economy. Ideally the stimulus plan is a fantastic idea, however; it is not realistic and will not work into setting our country back up onto its feet. If anything, this “relief” is masking the current problems and is going to cause more turmoil down the road.
According to http://www.recovery.com, the stimulus will be dived up in eight different areas; $288 billion towards tax relief, $144 billion to state and local fiscal relief, $111 billion to infrastructure and science, $81 billion to protecting the vulnerable, $59 billion for health care, $53 billion towards education and training, $43 billion to energy and the remaining $8 billion for other projects. It is intended, through this money, to prevent state and local cuts to health care and education programs and cease other tax increases. This money will be used towards the taxpayers, however; it is very unclear how. If no one is positive on to where this money is going, who is to say that it is actually working?
Mainly, the stimulus will fail because it is not addressing the problem at all. The primary issue with our country is that it does not understand its limits financially. We continue to spend and there is nothing to show for it. It’s amazing that despite the mountains of debt our country is surrounded by, we are some how able to fund $787 billion? The worst part about all of this, we are using this empty money to pay for situations that only occurred due to poor money management.
The Treasury Department and the Federal Reserve plan to give money to provide low-cost loans and guarantees to hedge funds and private equity firms that buy securities back by consumer and business loans. This funding will also go towards investors who acquire new securities backed by auto loans, credit cards balances, student loans and small business loans. The only reason why the need for funding towards these firms exists is because loans were given to people who knew they could not pay them.
Look at our real America. Be disgusted by the crowds of people who find having a designer handbag more important than feeding their families. The stimulus funding really needs to be dedicated purely towards education, education in banking. Clearly our population has proven that we do not know how to balance a checkbook, let alone save up for things unaffordable now.
It is said that if you give a hungry man a fish, he will be fed for that day. But if you teach a hungry man to fish, he will never go hungry. Instead of handing away tons of money, lets work towards building a stronger work ethic for the nation. Our country needs to lead by example, its time for all of us to start using our fishing poles.