Shortly after President Barack Obama came into office, he passed legislation that he claimed would save the economy and keep unemployment under 8 percent.
The bill, which is officially called “The American Recovery and Reinvestment Act of 2009,” was supposed to focus on important infrastructure projects that would boost job growth by repairing roads and building new highways and railroads.
The content of the bill was quickly shifted by radical Democrats in Congress from infrastructure spending to bailing out the states, temporary and ineffective tax cuts, pork projects, healthcare and education. Total infrastructure spending was only about $100 billion out of a bill that will cost taxpayers $1 trillion (including payment on debt).
A year and a half later, it is painfully obvious that the bill commonly known as “the stimulus bill” accomplished very little in job growth.
According to Obama’s estimates (which are impossible to verify) 2.5 million to 3.6 million jobs were saved or created. However, even assuming this number is true, there are still millions of Americans unemployed or underemployed.
It is painfully obvious to even Obama’s most ardent supporters that the stimulus bill did not do the job. Obama’s supporters are proposing additional stimulus, claiming the original bill did not contain enough spending.
But there are a large number of detractors who oppose the idea of this proposed new stimulus. It not only includes Republicans, but also many independents and many Democrats. These opponents are scared that increased spending will lead to much higher taxes, inflation, and the loss of the coveted AAA rating for the U.S. government.
The Democrats recently passed an additional $26 billion “stimulus bill.” The stimulus is nothing more than a bailout of the teachers unions. There is still talk of more stimuli, which in all likelihood will include the same inefficient measures as the first one.
One solution to the current debate that might satisfy both parties is a small stimulus package which includes infrastructure spending, and effective and permanent tax cuts. The package would be much smaller than the previous one in order not to increase the deficit drastically.
The ultimate solution to our current problems would be a committed stimulus package that focuses both on infrastructure spending and tax cuts at the same time, instead of pitting one against the other. Real stimulus spending, such as building of superfast trains, can help decrease our dependence on imported foreign oil from hostile nations like Venezuela.
This is the type of bill that the Republicans originally supported when Obama took office. The bill could also attract a lot of bipartisan support.
However, with the radical leftist takeover of the Democratic Party it is doubtful they will agree to anything that does not include massive and wasteful spending.
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