BARACK OBAMA’S PLAN TO STIMULATE THE ECONOMY

Barack Obama’s economic plan will inject $75 billion of stimulus into the economy by getting money in the form of tax cuts and direct spending directly to the people who need it most. Obama’s proposal will immediately provide stimulus using means that do not require lengthy governmental or administrative delays.

The plan also reserves an additional $45 billion of stimulus that can be injected into the economy quickly in the future if the economy continues to deteriorate.

For most Americans, this is a time of great economic anxiety. People are working harder for less and paying more for everything from health care, to college tuition, to filling up the gas tank. Recent data reveals that the unemployment rate has experienced its sharpest monthly increase since 2001 the last time the economy fell into recession. Jobs have been lost in a wide range of industries, including construction, manufacturing, retail and

the financial services. Last month only 18,000 jobs were created – a tiny fraction of the 125,000 jobs the economy needs to generate each month to keep pace with population growth.

Limited job growth has been coupled with inflation that is outpacing increases in average wages, meaning that even those who keep their jobs have less buying power. Consumer confidence levels are the lowest they have been since Hurricane Katrina and consumers are starting to cut back on spending as evidenced by lower-thanexpected holiday sales with automobile purchases falling to their lowest level in a decade.

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