News section of Cardinal and Cream
February 26, 2009 Issue p. 2
As Americans watched Tuesday, Feb. 17, President Barack Obama signed the $787 billion economic stimulus bill, now officially The American Recovery and Reinvestment Act, in front of a crowded room in Denver.
This was the end of the process Congress started several weeks ago trying to create a stimulus package that would help boost the economy through tax cuts and investments.
Many Republicans are unhappy with the bill because they do not support the excess spending and borrowing of such a large amount of money when the current economic situation is so poor.
Some Democrats are also disappointed in the final outcome of the bill because they said the package should be even larger.
In President Obama's address pushing toward passage of the bill, he said he hoped the package would create new jobs and help stimulate the crumbling economy, which is said to be the worst since the Great Depression.
"We have lost 3.6 million jobs," Obama said, adding, "but what is most disturbing is that almost half of those have been over the past three months."
The president said the package will help this downward turn change course.
Though he has talked about bipartisanship, he is unwilling to bow to the wishes of Republicans on this urgent mater because he said it is important to act quickly on the bill.
With those who do not support the terms of the bill, Obama said he is unwilling to compromise.
"It is necessary to spend money right now," stated Obama. "It is hard for me to take criticism from folks who, after presiding over the national debt, lost credibility."
In regards to Obama's self-deemed bipartisan efforts, Republican Sen. Lamar Alexander of Tennessee said such efforts have not been made.
"Fifty-eight Democrats and three Republicans (in support of the bill) is not a bipartisan effort," Alexander said in an official statement.
According to the breakdown of the bill, $288 billion will be allocated for tax relief, $144 billion for state and local fiscal relief, $111 billion for infrastructure and science, $81 billion for protecting the vulnerable, $59 billion for health care, $53 billion for education and training, $43 billion for energy and $8 billion for other costs.
Of particular interest to college students is the $15.6 billion to increase the Pell grant by $500 for individual students. The government is also allocating $200 million in aid to undergraduate and graduate students who also work.
When asked about his opinion on the stimulus package, Micah Watson, professor of political science at Union University, said he thought the bill should have been divided into two parts.
"In my opinion the plan should (have been) split up between the parts that would put money into the economy immediately and the parts that are favorite projects of the Democratic leadership and their constituents," Watson said.
Watson said he does not believe the plan will effectively change the economy for the better. He said it is an illusion to think a downturn is unusual.
"Trying to forestall any negative turns in the economy will only lead to a much deeper and more prolonged recession," Watson said.
On the other hand, Dr. Walton Padelford, professor of economics, is in favor of some sort of stimulus package.
"This stimulus will boost the economy," Padelford said. "Whether it will hit the exact amount of job creation desired remains to be seen."
Padelford does have some concerns with the amount of debt facing the nation. His main worry is the inflationary impact it might have.
"If the new stimulus package results in an approximately equivalent amount of new production, then it is not necessarily inflationary," Padelford explained. "If production does not respond, then inflation will be the result."
Dr. Bill Nance, business department chair, agrees the bill is not as bad as some seem to think.
Though he said he believes the stimulus package will help the economy somewhat, he is most concerned with being indebted to countries that hold different views in regards to government, such as China.
"China holds an increasingly large share of U.S. debt," Nance stated. "The Chinese perspective on issues such as human rights, freedom of religion and other issues is not at all close to our perspective."
Nance said it might be tough for United States leaders to make difficult decisions that would be negatively looked upon by countries such as China, since the United States will most likely need to borrow from them again in the future.
The Obama administration launched a Web site for citizens to see detailed information throughout the process of allocating funds and to give them the ability to respond with opinions and ideas.
Visit www.recovery.gov for more details on the stimulus package.
