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.
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)
"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.
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!!
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.
Answer by Anonymous at 9:43 AM on Mar. 6, 2009
Answer by Anonymous at 9:49 AM on Mar. 6, 2009
Answer by jesse123456 at 10:01 AM on Mar. 6, 2009
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.
Answer by momof030404 at 5:17 PM on Mar. 6, 2009
Answer by Scorpio359 at 6:31 PM on Mar. 6, 2009
Answer by Anonymous at 10:53 PM on Mar. 6, 2009
Answer by Anonymous at 11:00 PM on Mar. 6, 2009