Obama’s Solution For US Financial Woes-More Govt. Spending
Prior to his latest vacation at Martha's Vineyard over the Labor Day Holiday, Obama had indicated he would have a brand new economic package..
Today, in advance of his speech Thursday, details about the package were released. It contains a mix of 300 billion in tax cuts, but also government spending to create more jobs. According to Bloomberg Financial, Obama would offset the government spending and tax cuts by asking Congress to pass tax revenue increases as well. The 300 billion would provide aid to state and local governments as well as invest in infrastructure. However, critics of the plan say it won't help. Balancing tax cuts with tax increases in other areas will not stimulate the economy, nor will it cut the defecit say financial experts. His financial aid to state and local agencies will be used to prevent the layoffs of teachers and first responders. However, most political experts and other financial leaders say this plan will not even make a dent in the unemployment, and CBS market watchers say the plan is dead even before it begins--no way Congress will allow, with the current economy, the President to push through more defecit spending that is similar to the stimulus. Some say the plan is simply a ploy to attempt to boost Obama's sagging ratings. The Stimulus plan failed, unemployment has not budged since May 2009 (over 9 percent) and the President is now facing all-time low approval ratings over his failed policies. Consumer confidence is at an all-time low as well.