Tuesday, February 17, 2009
Stimulus is Signed: Make It Rain People
Today, President Obama signed into law another stimulus package. Obama made clear that the $787 billion package would not be the silver bullet capable of saving the American economy at one fell swoop. However, the package is hailed as the "beginning of the end" of America's economic crisis. The jury is still out on that one...
And to show appreciation for this landmark legislation that was pushed through, the Dow fell 300 points. The market continues to flounder and American consumer confidence has yet to be restored. Which is no surprise, I doubt that we should be encouraging all of the unemployed Americans to rush out to the mall. That would just further contribute to a vicious spiral of debt accumulation by individuals in all walks of life.
Any individual tax breaks and cash in pocket associated with the stimulus plan aren't the thing that we should be keeping our eyes on. Instead we should be focused on how effective this bill is at recreating FDR's Alphabet Soup and getting people off of the unemployment rolls.
Even more intriguing will be the response that other sovereign nations have to the "buy American" clauses built into the bill. While the spirit of these provisions is appreciated, I heard an interesting interview on NPR where the interviewer called the president of a major steel corporation a "protectionist" when he attempted to defend these clauses.
The stimulus will cause some problems and likely create a host of new ones. But fear not my dearest readers, as soon as I get my income tax return and any additional stimulating funds, I'll be right up in the club and n the casino...MAKING IT RAIN!