The house has just approved a legislation to appropriate a mind-boggling amount of $819 billion. This money will be made available to US President Obama once the Senate gives its consent. The US senate is dominated by the democrats, the same people that supported Obama in his campaign to get elected at the US next president. Therefore the appropriation bill is good as passed or approved by sheer majority vote.
There no is question at this time that the senate being democrat-dominated will give its thumbs up to the emergency legislation. The question is what will Obama do with the US taxpayer’s huge amount money?
President Obama’s plan is to use about US$544 billion of that money in federal spending and the balance of US$275 billion in tax cuts for individuals and businesses. His federal spending account will include job-creating programs like roads and bridges and mass transit projects including provision for unemployment and health care benefits, among others.
Still, a part of federal spending will go to state subsidies for areas that are experiencing deficits and budget cuts including California and other major states that need federal funding assistance and support.
For the ordinary citizens, Obama will try to ease some economic pressures in the form of tax breaks which call for a US$500 for single workers and US$1,000 for couples including those who don’t earn enough to owe federal income tax.
Earlier, Obama declared, ‘We don’t have a moment to spare’ as congressional allies hastened to do his bidding in the face of the worst economic crises since the great depression.
The vote sent the bill to the Senate where debate could begin as early as Monday on a companion measure already taking shape. Democratic leaders have pledged to have the legislation ready for Obama’s signature by mid-February, Yahoo news reports.
The amount of rescue money to put the battered US economy in order is indeed mind-boggling but President Obama’s economic managers are confident that the money will benefit the US economy in the short to medium term while people will benefit in the form of tax cuts and increased job opportunities for everyone.
In the meantime, many countries around the world await the stimulus package that President Obama and his economic managers are putting in place as most these countries’ economies are dependent on the US market for their products and services. Most economists say that a healthy and vibrant US economy is good for all nations of the world.