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Congressional Budget Office, New Report

According to the CBO: The tax cuts , including the “Making Work Pay” credit?
LESS VALUABLE—from a net loss (0.5 multiplier as a low-end estimate) to a modest benefit (1.7 multiplier on the high end).
Also, Obama's alternative minimum tax exemption CAUSES ECONOMIC HARM (a multiplier ranging from 0.1 to 0.5).
But the CBO also says by 2016, the package couldREDUCE GDP by as much as 0.2 percent, compared to having no stimulus.
http://www.cbo.gov/
So, basically~the economy could have corrected itself. And basically still will despite what Lawmakers have done. We will see a short spurt of GDP growth. Long term economic recovery may take longer, result in less GDP, and increase our Debt.
After reading the CBO report~Do you think we would have been better off to let the Economy correct itself?
Do you think the bailout money some states may refuse should just not even be borrowed from? (some states are asking for more)

Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 8:39 AM on Mar. 6, 2009 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (10)
  • "For example, a one-time increase in federal purchases of goods and services of $1.00 in the second quarter of this year would raise GDP by $1.00 to $2.50 in total over several quarters, with most of that effect in the first two quarters and little effect beyond a year."


    So, we are spending A LOT of money for a short term fix.  I say no bailouts. If states give up money from the stimulus, DO NOT give it to another state.  Just don't BORROW it.

    grlygrlz2

    Answer by grlygrlz2 at 8:42 AM on Mar. 6, 2009

  • I always thought we needed to leave it alone. The fundamentals were fine, it's the lawmakers that keep screwing things up by doing things like forcing banks to give loans to people who cannot pay them back!!

    momof030404

    Answer by momof030404 at 8:56 AM on Mar. 6, 2009

  • How can economy be fine when people are losing jobs?Or car companies go under?


    That is meaning people don't have money to pay things. And about how somebody forcing to take out loans is simply not true. It' s personal responsibility.It's easy to get loan but you need to think about can you afford the loan.

    Anonymous

    Answer by Anonymous at 9:43 AM on Mar. 6, 2009

  • We should have left it alone, Obama knew that. But that is not what he wants, he wants the economy in the pits to encourage the citizens to open their arms to his socialistic ways of governing. He wants the US to be socialistic, if he wanted America to be prosperous again, he would have done the exact opposite of what he is doing.
    Anonymous

    Answer by Anonymous at 9:49 AM on Mar. 6, 2009

  • I didn't hire Obama, but I'm willing to see exactly what he has in mind. He needs to keep in mind that he is working a temp job at best. If he can't put together a plan to lead that involves more than giving money away, I won't extend his temp contract in 2012. I'll vote to fire his butt and send him back to Chicago. If he is too arrogant before then, I'll support firing him sooner!
    jesse123456

    Answer by jesse123456 at 10:01 AM on Mar. 6, 2009

  • We should have left it alone, an average recession lasts 18 months and we are now in month 16. It had nothing to do with stimulus and the recession, it's called a shopaholic in office. We all knew he was a spender with no clear conscious with judgement and the outcomes voting Present, we got what the people asked for. Good for them. We told ya so.
    akinbottom2

    Answer by akinbottom2 at 12:12 PM on Mar. 6, 2009

  • Anon 9:43 is an idiot. Yes the banks WERE forced to approve loans in low income areas! That's why the housing market has collapsed! duh.

    momof030404

    Answer by momof030404 at 5:17 PM on Mar. 6, 2009

  • You are right momof03404, the banks were forced to give loans to low income people by a bill signed in 1999 by Bill Clinton, Barney Franks, and Christopher Dodd. Franks, Dodd, and Obama received funds from Freddie Mac and Fannie Mae. Franks knew what was going on because his boyfriend worked for Fannie Mae for 9 years.
    Scorpio359

    Answer by Scorpio359 at 6:31 PM on Mar. 6, 2009

  • I think the current administration is out to do one thing, ram communism down our throats!!! They are forcefully bankrupting our country so we have no choice, they are ruining us and all that we stand for.
    Why? I don't know, God forbid that they succeed!!!
    Anonymous

    Answer by Anonymous at 10:53 PM on Mar. 6, 2009

  • And to answer your question, lol, there are plenty of states that have both hands out, they aren't too proud to take more than their share besides they are already on the socialist regimen, that is why they are bankrupt!!!
    Anonymous

    Answer by Anonymous at 11:00 PM on Mar. 6, 2009

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