Obama’s Emergency Economic Plan Released: Second Stimulus Check & Growth Funds

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Barack Obama at St. Paul 2008In early June, Democratic Presidential hopeful Barack Obama’s mentioned a need for another stimulus check. Then, in late July, there were rumblings in Congress that Democrats were looking to put together another stimulus package that may or may not include a check to families. There was a move by Democrats to try to pass the aspects of the first stimulus package, which included a check, that were struck down in the name of expediency.

Senator Obama released this six-page policy paper that outlines a two-part stimulus package.

Part 1: Emergency Energy Rebate Checks: The first part would include an “emergency energy rebate.” Individuals would receive $500 and married couples would receive $1000. The checks would be paid for over five years by a windfall tax on oil company profits. The six-page document explains the nature of the checks but doesn’t illustrate how the windfall profits might be taxed (granted, given the political nature of the document, it might be out of scope).

Part 2: $25B State Growth Fund & $25B Jobs and Growth Fund. The second part has itself two parts. The State Growth Fund would help prevent state and local cuts in services like education and housing assistance as well as alleviate the need to increase taxes, tolls, and fees. Many states are feeling the pinch as housing prices fall, foreclosures rise, and real estate tax revenue falling. The Jobs and Growth Fund is really an infrastructure bill that would support maintenance of highways, roads, and bridges; as well as fast-track school repair projects. There is no mention of how this would be funded.

My Thoughts: I didn’t like the stimulus checks but having listened to their use in the 70s in Greenspan’s anecdotal Age of Turbulence, I’m not wholly against them as a mechanism for thwarting an economic slowdown. However, it’s becoming increasingly evident that the checks are as much about politics as they are about prevent a slowdown. While I would imagine the economic policy advisors on Obama’s staff are well versed in macr- and microeconomics, I wonder how much of it is influenced by a desire to win in November.

That being said, people are getting pinched. Not everyone is getting pinched, but a lot of people are and additional funds would help some remain solvent. My concern is that with a deficit nearing half a trillion dollars, we’re sacrificing our future prosperity for relief today. This is exactly the same thinking that gets many people into deep credit card debt. “Just a little more relief…”

Finally, what are the chances this actually happens? Democrats had difficulty extending unemployment benefits and those go only to those who have already lost their jobs. You can argue that some people getting the first stimulus checks didn’t need them, but unemployment benefits only go to those who are unemployed! It’s difficult to say if this plan would even fly, but it makes for an interesting discussion. So, what do you think? :)

(Photo: chadwho1ders)

{ 29 comments, please add your thoughts now! }

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29 Responses to “Obama’s Emergency Economic Plan Released: Second Stimulus Check & Growth Funds”

  1. CK says:

    Ah yes the “windfall profits”. If the idea of taxing “windfall profits” sounds good to you please take a drive off your nearest bridge.

  2. jim says:

    Haha someone’s in a feisty mood today!

    Personally, I don’t like windfall profit taxes because it’s penalizing success. Since when did we do that in America? However, I would like to see the tightening up of corporate taxes though.

  3. Lord says:

    I don’t care for windfall profit taxes either, but usually the time of passing them is when they soon become obsolete, so it could be a good sign. As far as rebates, the same thing occurs with tax cuts, so no difference there other than rebates are likely more stimulative, and tax cuts end up being future tax increases.

  4. muckdog says:

    Well, the windfall profits tax is a populist idea. It’ll just increase the price at the pumps.

    The $1000 energy rebate check is a poor idea, in that the money could better be spent in supporting the construction of new nuclear power plants. Nuclear energy would provide stable energy pricing for Americans.

    The $25B for states? CA has a $17B deficit all by itself!

  5. RR says:

    The windfall tax check is the definition of communism. Barry is an absolute Marxist, and this proves it. He is penalizing companies who have legally earned their money and redistributing it to those who have done nothing to deserve it. I fear for our economy if he is elected. I can’t believe what a right-winger this guy is making me!

  6. Ray roman says:

    It seems the government is always trying to give something back when the economy is on the verge of a meltdown. If they would just stop taking it from us in the first place we wouldn’t be where we are at today.

    Out government is wasteful, arrogant, and elitist, both parties I might add. If they would just stop the out of control spending I think we all would be quite alright.

    But what are the chances of that really happening? Zilch, so I ‘ll take whatever they give me, continue to pay off, and build my wealth so I am not dependent on them for my retirement.


  7. Carla Young says:

    I’m relatively liberal (at least I used to think I was) and I’m not all that comfortable with the idea of a windfall profits tax. At the same time, I’m especially unhappy with the significant subsidies the oil companies are getting, though I’ll admit I don’t know a lot about that. Why not axe the subsidies to an industry that’s doing quite well, and avoid these somewhat random taxes? Actually, what I want to see is a comprehensive carbon tax / energy policy that could (1) extract money for now and (2) help wean us from oil, hopefully. At least it’s on more ground than “you’re making too much money.”Furthermore, check this clash videos I found yesterday about the US Presidential candidates have talked taxes. Well, it’s entitled Obama v. McCain on Taxes. Watch these statements – then vote in http://clashorama.com/index.php?id=194

  8. da da da says:

    I Didn’t see any of you nitwit ‘s complainting about the so call president that’s residing in office right nowyou needto shut up which would be smart.

  9. joe says:

    hey i am all for a stimulus package i live in the northeast and it is cold here in the winter and many people like me dont have the money for things like heat,food,electricity,ect so any amout of money the goverment is willing to kick back our way the better

  10. no sherlock says:

    Consumers are what drive our economy. Trust me, give the people the money and they will spend their way out of the problem. You can always count on Americans to spend money (even the money they don’t have). Imagine if the same group of people who got stimulus checks in ’08 got a $25,000 or $30,000 stimulus check instead of giving the people’s money to the banks (which are not increasing lending). Do you have any idea what a stimulus check like that would do to consumer confidence? Forget inflation, it won’t happen. We would be a productive country again. Leaders in green energy. At this rate communist China is going to be number one. People would be paying their mortgages, retail sales would go up, entrepreneurship, auto sales increases, gains in the stock markets. Gosh, and my degree is in psychology not business. This isn’t the solution for every market downturn , but if you can give it to the banks you should have considered the people first. We need to do this and then become very strict in how we conduct our business practices.

    • a strugglin mom says:

      Yes yes give it 2 the 1′s that don’t have like me I cud start over n so many ways the banks & other companys know that they gonna help them that’s y they do the things they do with the money they have u shouldve sent that comment 2 the white house fed ex!!!!

  11. Sheila says:

    Ha, yep, A $20,000 stimulus check would help me!! I could pay my bills and maybe even buy something. If my bills were paid, I would be less of a burden on society. They should have bailed out the people, not the banks who harass people if they don’t have the money for their payments. It’s OK for these banks to treat people like total garbage, but if they get in trouble, they get bailed out. It’s not right. I can’t pay my bills because I lost my job, not bad management.

  12. tania j says:

    i know that if a white president came up with the idea you bastards would be for it know that its an african american you want to put all of his ideas down. i feel that you are all stupid.

    • jackie says:

      i agree 100% with you when bush was talkin about his plans nobody said anything now that obama is talking about it everyone is all mad and what not

  13. – The Bastards are all in the same Boot as the Bastard is the-Elected- also He is a Bastard with a white Bitch for a mother who stepped out of her “GOD”! given race to produce
    This theiving demagog idiot- who will try to take CREDIT for all that will be accomplished by the foregoing staff- that is put together – will be his brains that He does not have, and he is Starting to take credit for the future GRADUATES-comming out of schools who will likely.find the work He thinks he<will have created in his term,.”HE IN FACT IS THE BIGGEST MISTAKE” our country has ever made- also this idiot has never given anything to this country, as “WE”! who fought for the rights this Bastard is enjoying,. and taking up space where a “Great Veteran”as John McCain
    & Governor “SARAH PALIN” would have been able to Bring Our country-that “WE”! fought and some died for- to a NEW and more productive-
    place for the Honorable people to Live- My opinion of That THE ELECTED BASTARD will create havoc- for The ‘UNITED STATES’

    • brandt says:

      Dude you know how uneducated you just sounded right there. I was so not for McCain but I was not for Obama either although I would rather have Obama than McCain because McCain would just keep on giving to the rich and fucking the poor and middel class.

    • JAY says:

      stupid, if not McCain than bush right then again stupid. But the best to you and god love you

    • JAY says:

      they don’t want to post i guees

      • brandt says:

        You know there is alot of people who do not give to their country but yet get whatever the fuck they want in life. And when you say “WE” I don’t think you lived back when the civil war was actually going on were our ancestors were fighting for freedom of speech religion and so forth. I think as a whole “WE” do not understand how it feels to have our rights taken away from us. Anyone has the oportunity to become president just depends on how much you want it, who you know, and how much the american people like you. So unless your rights are being jepordized don’t say the rights “WE” fought for or unless you are in the armed forces yourself if not you have nothing to say. And by “WE” you mean white people right people like you yea ok.

  14. brandt says:

    I’m not totally convinced about the whole stimulus package thing but in order for the economy to get going again the goverment has to provide a way for Americans to spend more money. How are we suppose to spend money to stimulate the economy if the average (like most)Americans don’t have that extra money causing buisnesses to fail because no one is buying their products. If no one is spending money and buying their products then these buisneses can not pay their employees which then causes more unemployment. SO the GOVERNMENT has to either create new jobs so people can get money or dish out money to those who need it so they spend it. And you can’t let the poor go without help if you do they riot when they riot civil war may happen and the cycle begins from their look back in history always take care of the poor they are the back bone of society and can bring down a country if pissed on and not cared about. Anyways the goverment needs to spend money in order for the American people to spend money and eventually the economy will revive it self its a vicious cycle that will happen and we always come out of it.

  15. James says:

    Geeze there really are some idiots in this world. You say we are pentalizing big companys that “legaly made their money.” That’s probably the stupidest thing I’ve ever heard. The reason we’re in this crisis now is because of big corporate. Let’s loan people money who we know can’t make the payments or give them a sweet deal at first and then balloon the payment so high they can’t afford it. Then we can write off the losses take back the home or car ect. and then cry that people defaulted on the loan. Lmao yeah that sounds legit. IDIOTS

    • brandt says:

      I didn’t say it was fair but its the truth. Yes I know its big corporates fault but if people aren’t spending money then big companies aren’t making money if they’re not making money they go out of buisness they go out of buisness thousand to millions are without jobs. People have no jobs they can’t spend money leading the economy into a recession or depression which then the government has to step in take over and either creat jobs or take MONEY from big corporations that are makeing lots of money in order to stimulate the economy but I never said it was fair.

  16. JAY says:

    “Great veteran” as John McCain or John McCain a Great veteran,its not a movie dude (Your truly JR)

  17. kenny says:

    Yes we need another stimulate check to help with bills and other things. Im out of a job and its hard to make it. Im starding my own buisness soon.But without a boost its hard to make it.

  18. kenny says:

    Yes we need another stimulate check to help with bills and other things. Im out of a job and its hard to make it. Im starding my own buisness soon.But without a boost its hard to make it. If THE CHECKS ARE BEING RELEASED THEN WHEN?

  19. virginia says:

    Use seniors would rather have an increase in our social sercurity checks it is better for use to see the increase each month instead of a lump some it can all go in just weeks. at least an increase would benifit use each month.

  20. reginald glenn says:

    I file my taxes with Jackson Hewitt and they didnt tell my anything about a stimulus check a i work everyday and i thought people that work is going to get a stimulus check but why they didnt tell me anything about it

  21. Cheryl says:

    The state of california is broke so us disabled won’t receive our renter’s rebate & then we won’t get a raise on social security, why doesn’t the ole government just bury us seniors now, hell !!!with a stimulus check Obama all your friends are crooks anyway like your preacher of 23 years etc…..I hope we don’t need another year of you and the democrats…..I don’t trust you

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