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Headline: President Bush Backs Economic Stimulus Package

In a speech from the White House this morning, President Bush proposed $145 billion in tax relief. According to insiders, individuals might receive rebates of $800 and families, $1600. This proposal follows Federal Reserve Board Chairman Ben Bernanke's testimony yesterday, calling for temporary measures to stimulate the economy. Bush echoed the chairman's sentiments saying that the relief should be temporary, but take effect right away. Aiming to bolster both business expansion and consumer spending, Bush said, "this growth package must be big enough to make a difference in an economy as large and dynamic as ours, which means it should be about 1 percent of GDP."

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kathrynliz kathrynliz 9 years
it's just great that those of us who pay the most tax aren't even eligible for the rebate, according to the proposal. it's like being punished for being successful and working hard.
LBruce LBruce 9 years
Americans will never stop buying cheap products made in China - it's just not going to happen. We love consumption, and are given endless amounts of credit to rack up debt. Currently, China is the number one supporter of our economy by lending US money; the value of the US dollar is spiraling downward and we are at their mercy - not vice versa. If American's were smart, they would be seriously worried about how much control China actually has and start saving.
cine_lover cine_lover 9 years
Oops I hit post before I was done. I hope I answered your question. I have been up since early in the morning so I am a bit incoherent.
cine_lover cine_lover 9 years
Jillness Sorry it has taken me so long to respond, I was on the train coming home :) Here is what i have to say towards the undocumented workers and foreign merchandise. It really all comes down to economics and the how much the people of the US want things to change. For the most part, America will not ever be able to compete against cheaply made and cheaply priced Chinese products due to the laws and regulations we have. If Americans really want to change things for the better in the US, American's have to stop buying products from China and go back to buying American made products. The purchasing of American made products is what will bring the industry back to the US. This will help to generate more jobs, bring lower income families into the middle class and will generate more money to be spent in the U.S. As a side note, this would also have the US sending less American money to China, a dangerous country in my opinion, which would keep us from funding programs of theirs that could, futuristically, work against us. Though you bring up undocumented workers in the context of manufacturing, it seems like undocumented workers are used much less in this area in the U.S. (though I'm not saying it doesn't happen at all) as much of the "cheap products" that Walmart carries is brought from outside countries like China. Most of the debate with undocumented workers seems focused in the areas of farming, cattle and agriculture. These are not areas, for the most part, where we are competing with cheaply made Chinese products. These are products which stay within the U.S. Paying U.S. citizens to work these jobs instead of illegal immigrants is in our nation's, and particularly our economy's, best interest. Though raising pay in this industry could raise the price of food, it also opens new job opportunities, employing those who are not currently employed and are a burden on the state. When the burden is lifted off the state, spending from the state can go down and taxes can be lowered, once again generating more money within our own economy. I hope I answered your question.
karisaamy karisaamy 9 years
I will make a difference if people don't do what I plan on doing and sending that money off to Mastercard to make my bill go down. We are really working on that right now, and I don't want to buy needless things until the 2 bills are gone.
i-am-awesomeness i-am-awesomeness 9 years
Erm, I guess I'm showing my lack of knowledge here, but where exactly is this money coming from? The idea sounds good in theory, but if there's so much money being returned to people, shouldn't they have not paid it in the first place? Also, this reminds me of history class when we went through the Great Depression and how Roosevelt created public works projects to get people employment, and once they were employed, they would then spend the money, thus helping the economy. Isn't Bush's plan awfully similar to Roosevelt's?
Jillness Jillness 9 years
I agree, is so important to America. We need jobs here, so we need business to thrive here. I don't know a lot about business taxes, unfortch. I do have other thoughts...(*warning, sensitive topic alert coming up!*). One thing that I think is missing from the debates is this question, "Why are American businesses so desperate for undocumented workers." It is my opinion, that businesses need to do something in order to compete with companies that are in countries that have much lower standards for labor laws (China, etc.). These companies produce cheaper products, and in stores like Wal-Mart, Americans eat these products up! I think that businesses chose undocumented workers because it saves them money on not providing health care, overtime pay, etc. Do we need to set up a special class of worker that is exempt from labor laws? Would America be willing to offer the opportunity for citizens to work under alternative working conditions? Would that decrease the demand for undocumented workers, and increase the American Product's viability in the global market by reducing prices? I would love to hear your thoughts, Cine!
cine_lover cine_lover 9 years
Jillness I completely understand what you are saying, and I actually agree with a lot of what you have to say. I am more talking about taxing big business, and I know people are going to hate me for this, but we are taxing big business out of America and they are out sourcing, (try to call customer service, it is almost always to another country). We are losing jobs for people. We need to give tax breaks to corps to generate jobs, not tax the rich. I hope I am explaining myself clearly since it is the end of the day and I am tired. To make my point there is a story out of Balitmore about the cap and trade system they are trying to put through for companies and their emissions. By passing this, if they do, the business are going to move out of Baltimore, they will not stay there. Say goodbye to their economy. So all in all what I am trying to say is raising taxes I do not think is the answer long term. We need jobs. We need job training. We need to help the middle class, like you said. ANd we need to realize that we can't rely on credit. We need to take charge of our spending.
Jillness Jillness 9 years
I feel that the Republican strategy has reduced taxes more for the wealthy that are just sitting on their money. The middle class takes their money and reinvests it into the economy by their spending habits. I thought we learned in the 80s that "trickle down economics" doesn't work...that if you cut taxes for the VERY upper class, they won't go out and create new business and jobs with that money. They just sit on it. Not to mention, we are spending more and reducing taxes at the same time. We have this HUGE amount of money going towards the war, and we are taking in less money. I have heard that no President before Bush has ever reduced taxes during wartime. I don't know if that is true, but the fact is that it doesn't add up to spend more and take in less.
cine_lover cine_lover 9 years
Jillness the current state of economics is more then what the Republicans did. It has to do with sub-prime credit. It is the PEOPLES fault. NOT those pesky republicans. We are the ones who bought houses that we should not have bought. We are the ones that spent so much on our credit cards that we can't pay them back. It is the credit lenders and the mortgage companies and the general public that are at fault for 85 % of this mess. California spends approximately $600 million dollars over budget every month. They are in a recession whether they want to admit it or not. The government spends too much of programs. We need a budget, without raising taxes. We are taxing industry out of America. Without industry there are no jobs. And with no jobs there is no money to spend, you get the point. I realize that I am more conservative then most on Popsugar, but even if I weren't I wish the American people would take responsibility for their actions instead of blaming everything on the government when it comes to economics.
onabanana onabanana 9 years
There are plus and minuses but it should help in the short term. As for long term economic health, it's difficult to really say.
meumitsuki meumitsuki 9 years
It could make a difference if people take the money and put it into the economy, such as buying goods or stock. If you use it to pay a mortgage bill, or pay down debt, it doesn't help the economy overall. Thats what I learned in econ, but I am sure there are people who know alot more about it than I.
j2e1n9 j2e1n9 9 years
Gosh I wish I could remember a shread of ANYTHING from my Econ class to know if this will make a difference!
onabanana onabanana 9 years
At least McCain sees reality. I mean, he may not know what to do with it but at least he's not telling people in Michigan that the auto industry can be saved. God! When I heard Romney say that, I almost fell out of my chair. At least this time a round we have some options for president. I hope young people really do come out do vote.
onabanana onabanana 9 years
He made his statements and now the market is down. I'm no expert but I don't think that was the intended effect.
Jillness Jillness 9 years
McCain said: "As a Republican, I stand before you embarrassed. Embarrassed that we let that spending get out of control, and it led to corruption. Now we have former members of Congress residing in prison," McCain told a town-hall style meeting at the Carolina Hospital East Campus in Florence. "If I'm president, it's going to stop." "The economy is not good," the Arizona senator said. "The stock market continues down. And the indicators are not good. I'm not too astonished. ... We let spending get totally out of control, and it continues today, and I'm sorry to tell you this." Ummm....why didn't you stop things when your party had control of both Congress and the Presidentcy? I just don't see how Republicans can complain about the state of things, and act like it wasn't their fault.
jnj213 jnj213 9 years
there's 1 months rent I don't have to worry about if this goes through. I really hope it does... I don't know the best option but we definitely need to do something about our economy. I LOVE CITIZENSUGAR by the way- I'm so excited it has been added to the sugar network!
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