In February 2009, the Obama administration seemed to have a viable solution to our current economic state. A part of the national budget, $787 billion to be exact, will be released as a stimulus package. The allotted amount has the sole purpose of jumpstarting the US economy. The administration believes that by helping companies, local government units and the cities through the stimulus fund, jobs will be saved and new ones will be created.Companies that suffer through the recession will have a hand in rebuilding. The government projected that 900,000 to 2.3 million jobs will be saved. The amount is roughly divided in thirds.
A part goes to tax cuts, another goes to benefits, education and healthcare, and the remaining used to create jobs via grants and loans. Data gathered by the Congressional Budget Office projected up to 3.8% GDP growth because of the stimulus fund.
With its main goal of creating confidence for economic growth and to reinstate public and investor trust in the finance industry (mainly blamed for the recession), it is important to constantly monitor the stimulus package’s success.
To apply for a Small Business Start-up Loan or Government Grant, you may need to provide the following information
- Personal Credit Report
- Resumes
- Business Plan
- Personal Background
- Collateral
- Bank Statements
- Business Credit Report (if you have a business already)
One of the opposing thoughts when the stimulus package was drafted is that it might further balloon the federal debt. Upon analyzing its effect recently, the package has definitely added to the burden of putting America further in liability. Aside from this, many are against the healthcare reforms brought about by the package.
A desired effect of the stimulus package was to promote public consumer spending. This is done by issuing rebates for withholding tax. Unfortunately, a lot of people were not aware they were eligible for a tax rebate.
One of the gigantic goals of the stimulus package was to create jobs. Most of its funds were allotted to public works construction. This seems to have led to a win – win situation for the people and for the government. Much of the stimulus money granted to local governments was utilized to create and improve roads and public buildings. Aside from public works improvement, recent data reports the following successes:
- Education jobs were saved, the package promotes improvement of the education system
- A number of full time jobs were created as grants and loans were awarded to private companies
- Private companies slowly investing and building partnership with financial institutions
- An increased rate in stocks investment
Definitely the positive effects of the stimulus package outmuscled the negative effects.
The stimulus package provided the stop gap measures needed to revive the economy. It is important to note though that the measure of its success does not end with meeting its short term goals. States and companies must continue to wisely allocate funds and to help the nation by generating more jobs. The people’s participation is important as well to ensure transparency and accountability. After all, the best decisions the government made are the ones with major public participation. In times of dire need, an appeal to private companies and financial institutions of transparency and integrity are heard throughout the country. We must help ourselves to make the economy stable and to ensure that we make the most of this stimulus package.
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