How the government’s economic plan will influence the lives of Americans is a very overwhelming issue. When I say this I mean that every American is unique and has a different financial stance in our economy. How can I say that Americans will be harmed when some will be helped? Does a banker and a teacher share the same interest? Does a wealthy businessman and a retired janitor go through the same crisis? The answer, though some would disagree, is no.
To start really understanding this topic we first need to know how do we describe an American. Some would describe an American as a citizen of the United States of America. This definition is most likely the most accurate and politically correct. However does this definition truly describe who or what an American is? No it most definitely does not. Here is how I would describe an American. A person who wakes up and knows that no matter what class he or she was born in they can better their position and can move among the ranks of society. This same person also has a chance to fall in class not because they were forced to but because they were unwilling to work for what they wanted. To be an American means that you have a choice everyday to either better yourself or not.
Now that we have a better idea of what an American is we need to find out how the plan would affect them. This seems like a very simple step but that is where you are wrong. I mean this by not many American know much about the plan other than everyone has one. With this stated you must be thinking of course they know about the plan I know about it. Do you when is the last time you sat down and looked at the economic plan that has been set before us like it was a contract that would change your life. Which it is, it is a contract that will change your life because you are an American.
While thinking about this I would also like for you to picture what you see on television. When I turn on the news what do I see? Of course I see local new and the weather but after that I see the more national issues. The largest of course would most likely be the health care plan. But I thought that the major issue was the broken economy not the health care of this country. Yes health care is important and yes it will affect many people but right now it is only hindering the leaders of this nation from truly looking at the big picture. Right now while our economy is trying to gain its footing people in Washington and across the nation are more interested in how to socialize our health care. In my opinion Health care is a scratch of the face of America while our economy is a gaping bullet wound in the side. If you were a doctor who would you work on first? Of course nobody wants a scratch on the face it could scar and leave you slightly embarrassed walking in a room but overall it will not kill you. But a bullet wound would and could kill you if left alone for too long.
Now that I have stated one of the issues I would like to reflect on what the economic plan is in itself. The economic stimulus plan aims to stimulate employment, certain critical economic sectors, and US consumer spending. This plan dictates $550 billion in spending on new projects and $275 billion in tax cuts. The initial plan includes investments for Energy, Science and technology, Infrastructure, Education, and Health care. However many analyst like Adam Posen of the Peterson Institute of Economics say that stimulus spending could come in many ways beyond what is in the plan. Some examples of this would be Automatic economic stabilizers or unemployment insurance, Mortgage relief, GI bill for returning veterans. However Posen also says that the Obama Administration “ for understandable political reason, doesn’t want to put it all under the cover of one title called stimulus, part because these things have their individual merits, but in part because they do not want to have a bill of $1.5 trillion.”
Now that we have a good idea of what the Plan is made of, we also need to look at how is Economic Stimulus supposed to work. And what is Economic stimulus in the first place. Economic or "fiscal" stimulus stands in contrast to monetary stimulus, a process through which the U.S. Federal Reserve Board adjusts interest rates to encourage or discourage lending. Economic stimulus is another means by which a government can seek to boost its economy, either in the short term, by encouraging consumers or companies to consume goods, or in the longer term, by encouraging the growth of businesses and the creation of jobs through investments in infrastructure and research.
There are many different forms of potential economic stimulus and they work in different ways. Tax cuts for individuals generally encourage short-term spending. Tax cuts for companies encourage both spending and investment. Expenditures on public works create contracts for firms and provide short- to medium-term employment opportunities. Investments in research and development take a longer-term approach under the theory that businesses will thrive in the future (and thus provide jobs) if they have the money to make intelligent investments in their operations now. Finally, some forms of economic stimulus seek to make investments that will pay off in the long run by making consumption cheaper for everybody. Other countries, including China, have similarly focused stimulus spending on infrastructure development.
Even though Economic Stimulus sounds good on paper economists disagree on the wisdom of extensive stimulus spending, as well as the particulars of the current U.S. plan. Given the current economic climate, most mainstream economists now say that the potential downsides of collapse are sufficiently grave and that large stimulatory expenditures may be necessary. This dissention between economists raises the question what is the risk of a large stimulus package? Most basically, there is a risk that the stimulus package won't work, or won't do enough, and that the economic crisis could continue despite massive government expenditures.
Now that we finally have a good picture of what the government’s stimulus plan is, how it works and what are the risks, we can start seeing how it will affect the citizens of this great nation. As described by government advisors, the proposed package of tax cuts was designed to benefit families and businesses. Working families would be eligible for a tax credit worth up to $1,000, with individual eligible for $500.And Business will get a extension of expired tax breaks from the 2008 stimulus package issued by president bush. Over all this sounds pretty good for families, individuals, and businesses but what does it really do? For families will it really help them make ends meet when they have mouths to feed house payments and numerous bills that are stacking up? Will $500 dollar really help an individual when it takes way more to survive? Businesses may be able to take advantage of the Tax break but looking at all the failing business that need so much money that it is ridiculous. The only people I see this helping is families, individuals and businesses that have it all together and know for a fact that they will be able to make it.
Trying to keep the plan neutral the government decided that they would pass up conservative provisions such as tax relief and capital gain tax cuts that disproportionately benefit wealthier individuals. So from this we can conclude that wealthier citizens will neither be helped nor hurt by this decision, but of course with all the loopholes in our government this statement may not be as accurate as the government wants us to believe.
Now that we know that the Upper class will not be the most affected we need to know who will be the most affected. For the middle class economic conditions are bleak. The Congressional Budget Office estimates that if the economy continues on its current course, both the length and depth of the current downturn will be the worst since the Great Depression. For middle-class Americans, this means job and wage cuts, loss of health insurance, and, simply, a daily struggle to keep up with everyday costs like mortgage payments and college tuition. If the government does what it say it will do more jobs will open up for the unemployed and tax cuts will help some survive. Students will also get a chance at a tax free college education. With this education more students can become a successful citizen. However they will also become the payers of massive debt that the government created letting them find an easier way into college, it’s like the government is trying to pay off dept by going into dept.
The final group I will mention is the lower class or the poor of this nation. Whether it is by self appointment or inability to work be it health or mental issues this class is usually on welfare. These people who get food stamps - 30 million and growing - will get more. People drawing unemployment checks - nearly 5 million and growing - would get an extra $25 and keep those checks coming longer. People who get Supplemental Security Income - 7 million poor Americans who are elderly, blind or disabled - would get one-time extra payments of $250. But will this really help when I have seen cell phone bills that cost more?
My conclusion is that dependent on how the plan works, if it works at all, Americans will be both effect positively and negatively. Some will not be happy about what they get and some will gripe and complain about their lot in life. However all citizens will have a choice on how to let this plan will affect them. For we live in a nation of opportunity were everyone has a chance to become what they want from the president to a soldier. I leave you now American citizens with the knowledge that you will be affected, be it good or bad. Please look into this situation as if your life depended on it because technically it does.

Bwhahahahahaha I had to wright this for speach class love me and not my grammer.


Never Shall I Ever Tell You What I Will Never Ever Need