Tuesday, February 3, 2009
Okay we all know the economy is in the shit can. A friend of Denny’s emailed him today and said she feared what was upon us may be of “unprecedented proportions.” Denny says we need to start thinking positively. Are we heading for mass hysteria? If you are currently not strapped for money or in fear of losing your job it is time for you to do your part as an American. Denny says go out and treat yourself to a fine dinner, or go buy that new dress you saw in Vogue last week, Or if you’re doing really well treat yourself to a new car…I hear some places are offering buy one get one free.
In the meantime lets talk about the Stimulus package Obama has in store for us. The most recent Number for his proposed plan is nearly $900 Billion.
“Fiscal stimulus aims to boost economic activity during periods of economic weakness by increasing short-term aggregate demand." The theory is that if more goods and services are being bought, whether cement for a new highway or groceries paid for with a tax rebate, there is less chance that falling demand will lead companies to lay off workers, resulting in greater falls in demand and a deeper downturn.” (New York Times)
The Senate has approved the proposal and the House is currently proposing a few changes: “Some senators say they want to focus on easing the housing crisis, increasing infrastructure spending and cutting taxes on corporations.”
Let’s not lose sight of the economic meltdown to begin with…Banks, Mortgages, and Foreclosures. The banks have been given significant amounts of money to stay afloat. They should now be doing the same for homeowners. Banks have now tightened their belts… as they should have years ago. But unfortunately those people who are not in fixed rates are still in danger of losing their homes and most do not qualify for refinancing.
“The House bill also includes $30 billion for roads and bridges and $10 billion for transit and intercity rail.”
Denny would be happier to drive on a slightly bumpy road for a year or two and see that money put someplace more universally useful right now. “It also includes $50 billion intended to make the country more energy-efficient by updating the electric grid to make it easier to accommodate solar and wind power, and by providing for weatherizing government buildings and low-income housing. In addition, there are tax credits to encourage the growth of renewable energy.”
“The plan also calls for $275 billion in tax cuts and about $300 billion in aid for laid-off workers and cash-strapped states. That money would be used to expand unemployment benefits, provide health-care coverage to laid-off workers, help states facing ballooning Medicaid costs and extend large sums to states to pay for education programs and school renovations.” (The Washington Post)
Denny says Hurry Up!!