Stimulated by the Stimulus

[MarkBarbieri]

It looks like the Feds are going to spend $825 billion on the stimulus.

For perspective, we have about 300 million people in the US.
We've got about 300 million people in the US. There are just over 110 million households. So that amounts to $2,750/person or $7,500/household.

Our anticipated deficit for 2009 was projected to be 1.2 trillion before this stimulus plan. That works out to $4,000 per person or $11,000 per household.

When you combine the two, the federal government will have to borrow almost $7,000 more per person or more than $18,000 more per household for this year. That's some serious money.

The GDP for the US for 2007 was about $13,800 billion. I don't have a projection for 2009, but I'd estimate that it will be in the same ballpark. So the stimulus will be about 6% of GDP. Our deficit ($1,200 + $825 billion) will be almost 15% of GDP. That's an amazingly high figure. Imagine increasing your total indebtedness by 15% of your income this year. That's not very sustainable at all.

Of course, if the stimulus does what it is supposed to, it pays for itself in the long run. The money isn't just going into the ether. We'll have new infrastructure, more health care, etc for all of that money. According to supporters, it will also help us avert or ameliorate a major economic slowdown. So it is hard to compare the cost of the stimulus to the cost of not doing it.

No matter how you slice it though, we’re digging a deep hole. In the not very distant future, be prepared for much higher taxes, much less government spending, or some combination of the two.

 

[DVC Sadie]

You can count us out of those numbers because we did not receive anything the last time the stimulus package was handed out and therefore I highly doubt we will qualify this time around.

It is amazing to me that the government wants to go further in debt, especially during this economic downturn for another handout to 40% of the people who do not pay income taxes.

 

[minnie61650]

You can count us out of those numbers because we did not receive anything the last time the stimulus package was handed out and therefore I highly doubt we will qualify this time around.<SNIP>

We did not qualify to receive a stim check last year either.

The new plan does not (at this time) include stim checks.

It does include tax cuts and other items to help Stimulate the US ecomony.

Here are some of the plans that the Stimulus is supposed to include.

Barack Obama's Plan to Stimulate the Economy and Protect American Families Would:

* Provide an immediate $250 tax cut for workers and their families.
* Provide an immediate, temporary $250 bonus to seniors in their Social Security checks.
* Provide an additional $250 tax cut to workers and an additional $250 to seniors if the economy continues to worsen
* Provide relief to homeowners hit by the housing crisis.
* Provide aid to states hardest-hit by the housing crisis to avoid a slash in services.
* Extend and expand Unemployment Insurance.

Link:

http://www.barackobama.com/2008/01/13/barack_obama_announces_plan_to.php

 

[Carl]

You can count us out of those numbers because we did not receive anything the last time the stimulus package was handed out and therefore I highly doubt we will qualify this time around.

It is amazing to me that the government wants to go further in debt, especially during this economic downturn for another handout to 40% of the people who do not pay income taxes.

Same here.