2009 Stimulus Bill - Research Paper Example

? 2009 Stimulus Bill [School The American Recovery and Reinvestment Bill was the first essential step by the governmentto produce and preserve three to four million jobs, start up the economy, and start transforming the economy for the 21st century with $787.2 billion in economic improvement tax cuts and directed priority investments. The day that President Obama signed the American Recovery and Reinvestment Act, he made a speech in Denver, which was city where he accepted the Democratic Party’s nomination for the presidency. President Obama addressed the mayors regarding the stimulus plan and he highlighted the important aspects of the plan similar to his speech that he gave in Denver. President Obama had a meeting with the Prime Minister of Canada and took the opportunity, during the press conference to discuss the benefits of the stimulus plan. When Congress authorized the $787 billion economic stimulus package, not one House Republican voted for the stimulus plan. House Minority Leader John Boehner indicated that the plan would only make larger bureaucracies and not create jobs. Bill overview The American Recovery and Reinvestment Bill was the first essential step by the government to produce and preserve three to four million jobs, start up the economy, and start transforming the economy for the 21st century with $787.2 billion in economic improvement tax cuts and directed priority investments (Summary of Economic Stimulus Bill, 2009). The American Recovery and Reinvestment Plan allows for unparalleled supervision, responsibility, and clearness to make certain that taxpayer dollars are invested successfully and efficiently (Summary of Economic Stimulus Bill, 2009). The stimulus plan places investments in vital areas that will produce and maintain jobs and fortifying the capability of the economy to become effective and develop possibilities for employment. (Summary of Economic Stimulus Bill, 2009). The critical areas that the stimulus plan will invest in an attempt to create employment is in the energy sector, science and technology sector, modernizing roads, bridges, transit and waterways, fortifying the educational system, addressing health care expenditures, helping the unemployed, and maintaining public sector jobs. The American Recovery and Reinvestment Plan seeks to put individuals in employment to cut down America’s reliance on foreign oil by strengthening attempts aimed at increasing renewable energy manufacture and modernize public structures to make them more energy efficient. (Summary of Economic Stimulus Bill, 2009). The plan will invest more than $30 billion to alter the country’s energy diffusion, delivery, and creation systems and investing $5 billion to weatherize middle class homes (Summary of Economic Stimulus Bill, 2009). The stimulus plan will invest $15 billion for science facilities, research, and instrumentation and $7.2 billion to expand broadband internet access in attempt to help companies compete in a global economy. (Summary of Economic Stimulus Bill, 2009). The American Recovery and Reinvestment Plan will invest $27.5 billion for highway construction, $16.5 billion to renew federal and other public infrastructure, $18.8 billion for clean water, flood control, and environmental restoration, and $17.7 billion for transportation initiatives to cut down traffic congestion and gas use (Summary of Economic Stimulus Bill, 2009). To facilitate children to be taught in 21st century schoolrooms, the stimulus plan will invest $26 billion in school districts, $53.6 billion in state fiscal aid to avoid cutbacks to vital services, and $15.6 billion to enlarge the Pell grant (Summary of Economic Stimulus Bill, 2009). In an effort to keep jobs, money, and lives, the stimulus plan will invest $19 billion for health information technology to avert medical errors, supply enhanced care to patients and establish cost-saving efficiencies and $2 billion to offer preventative care and to assess the most efficient healthcare treatments (Summary of Economic Stimulus Bill, 2009). High unemployment and increasing expenditures have surpassed American’s paychecks and the stimulus bill will attempt to aid employees to train and locate employment and aid families with $20 billion to enhance food stamp benefits, $13.6 billion for programs to aid homeowners, and $ 4.8 billion to educate the unemployed so they can locate employment (Summary of Economic Stimulus Bill, 2009). The American Recovery and Reinvestment Plan will invest $4 billion for assistance to states for the employment of teachers, firefighters and police officers so vital services will not be cut (Summary of Economic Stimulus Bill, 2009). Democratic politician’s ideology and arguments The day that President Obama signed the American Recovery and Reinvestment Act, he made a speech in Denver, which was city where he accepted the Democratic Party’s nomination for the presidency. He indicated that when he accepted the nomination that he made a promise to individuals of all parties that he would do all that he could do to give every American a opportunity to do something in their lives and to witness their children climb higher than they did ( Remarks by the President, 2009).  He returned to Denver to state that the American government has begun the difficult task of maintaining that promise of keeping the American Dream alive (Remarks by the President, 2009). The President indicated that the stimulus plan marks the beginning of what the government has to do to create jobs for unemployed Americans, provide aid for families for their household expenditures, and to set the American economy on the right path for long-term growth and prosperity ( Remarks by the President, 2009). President Obama indicated that the American Recovery and Reinvestment Act that he will sign is the most sweeping economic recovery package in our history and has received broad consultation and support from the business sectors, Democrats and Republicans ( Remarks by the President, 2009). The president commented that it is rare that groups with partisan support came together to support the bill   delegation ( Remarks by the President, 2009). In Denver the President took the opportunity to highlight the features of the stimulus bill. He indicated that the bill will product or maintain more than 3.5 million jobs, the country can build its economic future on transportation and information networks, and the largest investment in the country’s infrastructure since President Eisenhower built an Interstate Highway System in the 1950s ( Remarks by the President, 2009). He discussed the competitive global economic environment and the importance of education in developing the nation’s children to compete. He indicated that a large investment will be made to produce jobs to create 21st century classrooms and libraries and labs for millions of student’s across America (Remarks by the President, 2009). Furthermore, the bill will allow for monies to educate a new generation of math and science teachers and give assistance to states and school districts to prevent teachers from becoming unemployed and crucial education programs from being cut (Remarks by the President, 2009).  The President discussed the health care concerns of families and businesses. President Obama indicated that the stimulus plan will computerize medical records to decrease duplication that costs the health care industry billions dollars, and medical mistakes that cost thousands of lives annually (Remarks by the President, 2009). The President acknowledged that the nation cannot continue to depend on foreign resources for energy. The plan will invest in renewable energy to create jobs and decrease the country’s dependence on other nations. President Obama indicated that the electrical grid currently in use dates back to Thomas Edison and that grid cannot support the requirements of the present day economy (Remarks by the President, 2009).  Although the stimulus plan involves vital investments, the President took the opportunity to mention that the plan also provides assistance to state and local governments to prevent layoffs of firefighters or police recruits (Remarks by the President, 2009). Also, the tax cuts will put money in the hands of 95 percent of individuals and not into the hands of the wealthiest Americans, but to the middle class (Remarks by the President, 2009). Shortly after the Denver speech, President Obama addressed the mayors regarding the stimulus plan. The President highlighted the important aspects of the plan similar to his speech that he gave in Denver. He appealed to the mayors concerning individuals contacting their office regarding unemployment, possibility of losing their homes and health care. He stressed the over crowing in the classrooms and the safety of the streets. He questioned the mayors on the difficult choices that they must make to either raise taxes or cut services. The President indicated that is the reason why the recoveries plan so crucial because it is a plan that will keep or maintain 3.5 million jobs, help those individuals that were hardest hit by the recession, and it will alleviate the tough choices that state and local governments must make (Remarks by the President and Vice President at meeting with nation's mayors, 2009). The stimulus plan will provide unemployment insurance for approximately 18 million Americans, and provide health care for 7 million Americans who lost their health benefits when they became unemployed and it provides tax cuts that will create jobs and put funds in the pockets of 95 percent of families Remarks by the President and Vice President at meeting with nation's mayors, 2009). Just as he did in the Denver speech, the President spoke about putting Americans to work to rebuild the nation’s infrastructure. He discussed the aging transportation and information networks and the investment in the amount of investment in the infrastructure since Eisenhower built an Interstate Highway System in the 1950s Remarks by the President and Vice President at meeting with nation's mayors, 2009). He spoke about the investment in education and healthcare because health care expenditures are getting too high and reducing America's dependence on foreign resources (Remarks by the President and Vice President at meeting with nation's mayors, 2009). President Obama had a meeting with the Prime Minister of Canada and took the opportunity, during the press conference to discuss the benefits of the stimulus plan. He advised that during the meeting they both discussed the economic recovery underway in both countries. He mentioned that he recently signed the most sweeping economic plan in America’s history and the Prime Minister and the President discussed thoughts to produce jobs (Obama, P., 2009). The President discussed that together they are going to launch a new initiative for the development and utilization of clean energy. Obama indicated that how energy if produced and used is vital to the economic recovery. The energy initiative will advance carbon reduction technologies and it will influence the growth of an electric grid that can assist in the delivery of clean and renewable energy homes and companies (Obama, P., 2009). The President spoke to those watching his address to Congress about people that are feeling the effects of the economic crisis and how it is affecting their available funds to pay bills for the homeowner and fund operations for the business owner. He mentions similar statements regarding how the economy did not decrease in a short period and the housing market did not cause all of the problems. He mentions the nation’s survival depends on locating new sources of energy, the expenses of healthcare are depleting savings, and how students must be prepared to compete in a global economy. He discussed one of the reasons why families are facing difficult times when they purchased home that they knew they could not afford but banks and lenders created mortgages for them anyway. The President in each of his public speeches addressed the features of the American Recovery and Reinvestment Plan. In his address to Congress he again took the opportunity to let the public know that the plan will keep or create 3.5 million jobs and that 90% of those jobs will be in the private sector rebuilding roads, rebuilding bridges, building wind turbines, building solar panels, developing a broadband network, and expanding mass transit (Remarks of President Barack Obama -- Address to Joint Session of Congress). The plan will permit teachers to maintain their employment, health care professionals can continue their obligations of helping those in need, and police officers can continue to provide safety for American citizens (Remarks of President Barack Obama -- Address to Joint Session of Congress). Families will receive tax cuts, families will obtain a $2,500 tax credit for students attending college, and unemployment benefits will be extended to those who are unemployed (Remarks of President Barack Obama -- Address to Joint Session of Congress). Republican politician’s ideology and arguments When Congress authorized the $787 billion economic stimulus package, not one House Republican voted for the stimulus plan (Herszenhorn, D., 2009). The plan will increase unemployment benefits and new health care subsidies and provide over $100 billion in aid for states, House Republicans did not vote for the plan (Herszenhorn, D., 2009). Although many of the House Republicans represented states that were hardest hit by the recession, they opposed the stimulus plan because of the new president (Herszenhorn, D., 2009). When the plan was debated Republican leader Representative John Boehner of Ohio furiously dropped the 1,073-page plan to the floor and accused Democrats of failing to read the stimulus plan (Herszenhorn, D., 2009). Boehner stated “The president made clear when we started this process that this was about jobs,” and he further indicated “Jobs, Jobs, Jobs, and what it’s turned into is nothing more than spending, spending and more spending” (Herszenhorn, D. (2009, February 13). The House Republicans pointed out the plan spends too much on projects that will take years to finish (Trapp, D. (2009, February 9). House Minority Leader John Boehner indicated that the plan would only make larger bureaucracies and not create jobs. Boehner stated "While it certainly has some good provisions, [the bill] has a lot of wasteful spending, a lot of slow-moving government spending in it" (Trapp, D. (2009, February 9). From the moment the plan passed, the $787 billion plan has been the subject of controversy, the Republican Party announced the plan a failure, and Boehner regarded it a waste: "You can't spend $800 billion of taxpayer money and not create jobs when you say that's what the goal was" (Gross, D., 2009). Before President Obama officially took office the Republican House leadership declared they would advocate their associates to vote against the stimulus plan because they rejected its size and the spending details (Davies, A., 2009). Although the Republicans went against the bill, John Boehner thanked President Obama for allowing the Republicans in the discussions of creating the plan. Boehner indicated that "We both share a sincere belief that we have to have a plan that works, that will revive our economy, create jobs and help preserve jobs in our country" (Davies, A., 2009). Boehner further stated "I think our members enjoyed the conversation. I think the President enjoyed the conversation. I look forward to continuing to work with him to improve this package." (Davies, A., 2009). Numerous Republicans in the House and Senate agreed that a stimulus package is needed but they had been campaigning for a different balance of standards, with a much firmer intensity on tax cuts for businesses and individuals (Sahadi, J., 2009). House Minority Leader John Boehner described the Democrats plan as "disappointing" (Sahadi, J., 2009). In a flip-flop of opinion Boehner stated "The plan ... was developed with no Republican input and appears to be grounded in the flawed notion that we can simply borrow and spend our way back to prosperity" (Sahadi, J., 2009). He further stated "It calls for more than half a trillion dollars in questionable new government spending on programs and projects, while providing less tax relief for middle-class families and small businesses than President-elect Obama has proposed" (Sahadi, J., 2009). The Republicans put forth an alternative stimulus legislation that calls for increased business tax cuts including reductions in the corporate income tax rate (Sahadi, J., 2009). The approach which most closely aligns with your opinion Since 2001, as worker productivity increased, the majority of the income increase in the United States went to the wealthiest 10% in the country.  While the upper class was benefitting from record high worker output, 90% of Americans were struggling to uphold their standard of living.  This plan will support the 90% of American, not just the banking industry CEOs and special interests in Washington.  The short term chore is to attempt to avoid the loss of millions of jobs, get the unemployed back to work, and revive the economy. In the long term, the government should make the required investments to re-establish the capability of families to increase their earnings and educate the students to become productive citizens in the global environment. References Davies, A. (2009, January 29). Republicans resist stimulus package despite Obama persuasion - World. Sydney Morning Herald - Business & World News Australia smh.com.au. Retrieved April 25, 2011, from http://www.smh.com.au/news/world/republicans-resist-stimulus-package-despite-obama-persuasion/2009/01/28/1232818531248 Gross, D. (2009, October 12). Conservatives claim the stimulus has already failed. But it has barely started. - By Daniel Gross - Slate Magazine . Slate Magazine. Retrieved April 25, 2011, from http://www.slate.com/id/2232185 Herszenhorn, D. (2009, February 13). Recovery bill gets final approval. The New York Times -Breaking News, World News & Multimedia. Retrieved April 25, 2011, from http://www.nytimes.com/2009/02/14/us/politics/14web-stim.html Obama, P. (2009, February 19). Press Availability by President Obama and Prime Minister Harper of Canada, 2/19/09 | The White House. The White House. Retrieved April 25, 2011, from http://www.whitehouse.gov/the-press-office/press-availability-president- obama-and-prime-minister-harper-canada-21909 Remarks by the President and Vice President at meeting with nation's mayors, 2/20/09 | The White House. (2009, February 20). The White House. Retrieved April 25, 2011, from http://www.whitehouse.gov/the-press-office/remarks-president-and-vice-president- meeting-with-nations-mayors-22009 Remarks by the President and Vice President at Signing of the American Recovery and Reinvestment Act | The White House. (2009, February 17). The White House. Retrieved April 25, 2011, from http://www.whitehouse.gov/the-press-office/remarks-president- and-vice-president-signing-american-recovery-and-reinvestment-act Remarks of President Barack Obama -- Address to Joint Session of Congress | The White House. (2009, February 24). The White House. Retrieved April 25, 2011, from http://www.whitehouse.gov/the-press-office/remarks-president-barack-obama-address- joint-session-congress Sahadi, J. (2009, January 15). House Democrats release summary of $825B stimulus bill - Jan. 15, 2009 . Business, financial, personal finance news - CNNMoney.com. Retrieved April 25, 2011, from http://money.cnn.com/2009/01 Summary of Economic Stimulus Bill. (2009, February 13). United States House of Representatives, 112th Congress, 1st Session. Retrieved April 25, 2011, from http://www.house.gov/list/press Trapp, D. (2009, February 9). House stimulus bill boosts health IT, Medicaid :: Feb. 9, 2009 American Medical News. American Medical Association - Physicians, Medical Students & Patients (AMA). Retrieved April 25, 2011, from http://www.ama- assn.org/amednews/2009/02/09 Read More