Stimulus Package

The House passed the stimulus package yesterday, and now it's off to the Senate. The $820 billion package offers lots of relief to people who need it. It would provide money for tax cuts, states, social programs, and infrastructure building. By raising unemployment compensation and increasing welfare programs, such as food stamps, the government will be giving money to people with the highest marginal propensity to consume- a sure way to get beneficiaries of the money to spend it on goods. The problem with giving money to people who have high paying jobs is that they will most likely save the money, or use it to pay off debts- which is good for the individual, but not for the macroeconomy.

I hope that college students are included in his tax cuts. Each person is supposed to get a $500 refund. In Bush's stimuls last year, which gave each worker (making under $150,000) around $600, students got jipped! If you were under 18, your parents got $300 for you. But students over 18 (who are dependents) got nothing. Lame.

I hope the Senate doesn't stall too long to get this bill passed!

http://www.nytimes.com/2009/01/29/us/politics/29assess.html?_r=1&em=&pagewanted=all