GECON200-Topic #3: Fiscal Stimulus

The $787 billion U.S. economic stimulus passed earlier this year was both increased spending and tax cuts. The government has set up a website to help track the expenditures of the stimulus at Recovery.gov. At this point, the government claims to have saved or created over 600,000 jobs. However, the jobs created so far fall very far short of the total job loss. The job numbers cited by the White House have been repeatedly criticized for being too rosy.

Business week reports that the unemployment rate, now over 10%, is likely to stay high in the near future. Business Week also reports other countries success at creating jobs more directly than the U.S. has through their stimulus packages. Additionally, most of the G-20 nations have maintained their stimulus packages throughout the downturn, and many have pledged to continue. India however, is the first to exit from the stimulus parade, fearing inflation will hurt many of their citizens.

Questions you might try to answer:

  • Looking at the projects listed by recovery.gov, see if you can find actual evidence that the stimulus is creating jobs.
  • What are some other nations idea for creating jobs and stimulating their own economies?
  • How would the withdrawal of stimulus from the G-20 economies impact our own stimulus?

First off. When writing your blogs, do NOT simply restate or summarize one of the articles that I give you to look over. You are supposed to be forming an opinion, and trying to defend your opinion using facts that you obtain from an article. If someone else has already used your statistic, you should NOT just use it again. You’re supposed to be finding information here in related articles.

I would like your statements to be as subjective as possible, or in jargon terms, positive and not normative in nature. Also, remember, I want you to keep your descriptions short, basic, and related to classroom content. Read other students comments before posting, and please leave your name with your posting.

52 thoughts on “GECON200-Topic #3: Fiscal Stimulus”

  1. The stimulus package that the government has implemented is supposed to generate new jobs but is it really doing so. According to Lachman “…the U.S. labor market continues to deteriorate at an alarming rate” (2). As of October 30th the unemployment rate in Michigan was 15.3% and California wasn’t far behind with a rate of 12.2% (1). With such high unemployment rates it’s not hard to question if the stimulus package is doing enough for our economy. As Herbst says “the U.S could be facing a painful jobless recovery” and for the time being that seems to be exactly so (3). Currently there is not a quick fix solution but with an average unemployment rate of 10.2% new policies and employment opportunities need to be implemented immediately. Without a more effective road to recovery, the economy will continue in a destructive matter and unemployment rates will grow even higher. Obama needs to think of a new strategy to get the job market back on its feet before the economic crisis progresses even further. (1) http://www.recovery.gov/Pages/home.aspx(2) http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html(3) http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm

  2. While sites such as recovery.gov (1)lead the average reader to believe the stimulus plan is succeeding in creating enough jobs to alleviate the unemployment rate, further investigation shows that although some minute progress has been made, the goal has been nowhere near met. The Obama administration stressed that the stimulus package would bring unemployment down to 7.25% by late 2010, never allowing it to rise above 8.25% (3). In fact, states such as California, Georgia, and Florida still boast staggering rates above 10%. To extend the crisis, it appears that with countries such as India pulling out of the stimulus plan (2) the whole agenda could collapse in on itself. Perhaps the administration should reiterate that in order to succeed in revamping the global economy, countries should pull out later rather than sooner. 1)http://www.recovery.gov/Pages/home.aspx2)http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHA3)http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html-M. Seckinger

  3. Is the stimulus package of $787 billion dollar enough? According to recovery.gov, 15 states have an unemployment rate with double digits. Many other states are not far off either (1). In fact, the unemployment rate has increased in the US, after losing 3.5 million jobs, peaking at 10.2% (2). There are simply not enough jobs. The stimulus package isn’t doing enough, although economists believe that the recession would have been worse without it. On the other hand nations such as Germany, have a stable unemployment rate. According to businessweek, this is due to the more direct actions government is taking with their money in the job market (3). If US decides to emulate these policies in Europe, Obama administration may be able to find a more effective solution to stabilize the economy.1) http://www.recovery.gov/Pages/TextView.aspx?data=recipientTopJobs&ViewAll=1002) http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html3) http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022_page_2.htmDavid Park

  4. According to our government, Obama’s stimulus plan has created 640,329 jobs as of October thirtieth (1), but can that number continue to grow at the rate we need it to? Although the stimulus plan has created a relatively decent amount of jobs, the unemployment rate is continuing to increase. Clearly the issue is that our government cannot figure out a way to create jobs without continuing to spend large amounts of money. Suggested by government officials, a smart idea is to increase the sale of exports (2) and the U.S. would be able to bring in some outside money while gaining jobs for people within its borders. It comes down to the simple fact that the government is spending billions, almost trillions, of dollars and the unemployment rate is continuing to increase which places a pessimistic view of our president in the eyes of many Americans (2). Even with billions of dollars at the governments’ disposal, they’re still not creating jobs as well as not doing their own job. The only real choice they now have is to try a whole new approach, which could potentially change the way we currently live.http://www.recovery.gov/Pages/home.aspxhttp://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022_page_2.htm R. Costello

  5. I think that India dropping the stimulus package prematurely will have a negative impact on the overall worldwide economy. India’s economy is expected to grow as much as 7% next year and the government doesn’t want a sudden increase in inflation to hurt “the 800 million Indians that live on less than $2 a day” (1). Although the Indian government does have valid reasons for wanting to cut down their stimulus money, their withdrawal could send shockwaves and worry throughout other country’s economies. India’s Prime Minister Singh recently stated, “India has been able to face the global economic downturn better than most other countries in the world” (1). Though this may be true, they should consider the countries that they’re connected to, such as the United States. The unemployment rate in the US has risen past 10% (3) and we are still at risk for a “double dip recession” in the following year (2). We still need other countries to support us during this crisis, because we are all interconnected. Giving up on the stimulus plan now would encourage other countries to do the same, and would lessen the confidence that smaller, less developed countries have in the leaders of the G-20 nations. 1.http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHA2.http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html3.http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm

  6. I think it is wise of India to cut back the amount of money that they are sending into the economy in order to avoid inflation. “Indians who live on less than $2 a day” would be financially harmed and would not be able to support their families (3). Since a significant amount of rainfall is expected, the economy in India would be financially stable without the addition of excess money into the markets. Other countries may want to consider stepping back and looking at what India is doing to help their economy and see if they should follow in the footsteps. Though many countries think “it’s too early to withdraw fiscal steps designed to support global recovery,” economists in India may have the right idea on how to save their country (3). According to recovery.gov, 640,329 jobs were created or saved but that still is not enough since the unemployment rate in some states is over 15% (2). The idea the White House and Congress had on giving employers tax credits if they create jobs seems like an idea that would definitely pay off (1). Though they chose not to continue with it because it would prove too costly, I feel it would pay off in the long run. More people would have jobs and would be making a steady salary which would create more spending and bring the inflation rate down. If they reconsidered and passed these proposals, the unemployment rate would decrease significantly and help to stabilize families who were struggling due to losses in income.Annie E.1)http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm2) http://www.recovery.gov/Pages/home.aspx3) http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHA

  7. According to the Central Banking Office only one hundred and thirty-six dollars or just sixteen percent of the United State’s Stimulus package will be spent half way through Obama’s term in office. While Obama originally said that the stimulus package was supposed to be a quick jolt to the economy it is not this way at all. Also the CBO says that billions of dollars will be spent on new government computers and cars with alternative fuel. However this package does not specify how it will cure United State’s ten percent unemployment rate. When the Indian Prime Minister Manmohan Singh decided to drop the eight billion dollar stimulus package I believe it was a good idea considering the economic state that they are currently in. Much like the United States, India is facing a huge budget deficit and a significant inflation. The United States should not be able to afford such a hefty stimulus package with our current budget deficit and should follow India’s footsteps in dropping our stimulus package. http://www.foxnews.com/story/0,2933,483345,00.htmlhttp://www.businessweek.com/globalbiz/content/dec2008/gb2008128_276382.htmlMarco Romaniello

  8. Forbes.com and Businessweek.com both agree that the Obama administration is not doing a good job in creating more jobs for the U.S. economy. The jobless rate has soared above the 10%, which the administration claimed would never happen, and the stimulus package is not creating as many jobs as needed or even promised. In all, the White house plan does not seem to be working. Including those who are working part-time involuntarily, the unemployment rate is at 17.5%, and it is not expected to get any better until next year (1). With such poor outcomes, it is obvious that the government’s plan of throwing more money at the problem is not an option; especially with the deficit as it is. Just as Businessweek claims, it is easier to create spending than jobs. It is easier to stimulate spending in the U.S. economy than trying to forcibly create jobs (2). Also, India has decided to come out of its stimulus plan since its economy is showing life in spending (3). It seems that the best way for the U.S. economy to pull out of this recession and unemployment is increasing spending. When capital is pumped back into the economy with increased spending, there is bound to be more companies who prosper, and thus, hire more people. It seems simple enough that with more income, there will be more hiring in the economy. Also, stimulus spending legislature like the “cash for clunkers” deal not only supports people’s spending, it also gives something for people to see concretely. It seems that many financial problems are in the perception. If people perceive the economy getting better, it actually may do so. The money has to be out there somewhere, with someone. The government should help them spread that money around.1. http://www.forbes.com/jobs-economy-bailout-opinions-contributors-desmond-lachman.html2. http://www.businessweek.com/bwdaily/dnflash/content/db2009116_475022.htm3. http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHAVictoria Jeon

  9. According to recovery.gov, California has saved/ created 110,185.36 jobs but California also has one of the highest unemployment rates, under total jobs saved and created there is 640,329 total. (1) What this website was not saying is how many jobs are needed or the jobs lost. The economy was still shedding jobs at a pace of around 175,000 a month, and now is at 10.3 percent unemployment. (2) 787 billion dollars to create roughly one million jobs is not enough to be worth the cost, maybe we are capable of creating more jobs without the surplus. Some other ideas for creating job consist of expanding already existing jobs in any industry, or make it easier for entrepreneurs to own business and create jobs.(3) Our economy is not completely stable for the nations to start withdrawing from the plan of restoring the global economy. There is a upturn ahead now if the nations stay together, it would be better to wait to be sure rather than withdraw and have a chance of another down fall. (1) http://www.recovery.gov/Pages/home.aspx(2) http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html(3) http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm kristin cecil

  10. During the current economic crisis, governments worldwide have turned towards policy that will help to stimulate their government and hopefully create new jobs in the process. However, policy makers and government officials (specifically here in the United States) have realized how difficult it is to promote economic growth and lower unemployment at the same time. With unemployment rates almost 2% higher than were ever expected after the stimulus package took affect, the Obama administration is facing some serious challenges (1). Many economists believe the answer may lie abroad, specifically in European countries such as Germany. By having a more “direct role in the job market,” German officials are able to provide stability more quickly in the face of economic downturn. Providing better unemployment benefits, short work programs, and apprenticeship opportunities give Europeans more access to both income and job prospects (2). I believe that the Obama administration is on the right track towards improving our economy, with already over 600,000 new jobs created, but significant adjustments do need to be made (3). Jobs need to be “created” at a quicker pace in order to have a major affect on the current rates of unemployment, and other means of income need to be implemented for those who become unemployed in near the future. (1) Lachman, Desmond. “What Jobs?” Forbes.com, November 6, 2009. http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html(2) Herbst, Moira. “Seeking to Grow Jobs, Not the Deficit.” BusinessWeek.com, November 6, 2009. http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm(3) “Track the Money.” Recovery.com, November 10, 2009. http://www.recovery.gov/Pages/home.aspxLauren Trani

  11. The Obama administration’s implementation of the stimulus package was supposed to create jobs, correct? On the contrary, according to Desmond Lachman, “the U.S. economy has lost around 3.5 million jobs since the start of this year.” But where is the money going? The stimulus package totaled an astounding $787 billion dollars according to recovery.gov. Yet, some of the projects seem (at least to me) like the government is once again wasting away the taxpayer’s money. For example, Veronique de Rugy states, “the data on Recovery.gov reveals that many private-sector jobs were created at very high cost to taxpayers. For instance, $437,675,000 was awarded to CH2M WG IDAHO, LLC, in Washington to create 496 jobs. That’s $882,409 per job.” It makes one question where this money is really going? Why is such an exorbitant amount of money needed to create one job? One solution is that instead of taxing the American people and giving that money out to companies, entitlement programs and renewable energy, let the people keep their money. Cutting taxes has proven to increase spending because the more people have, the more people will spend. When people spend money, the economy is naturally stimulated. So instead of implementing plans from the top down, from the government to the people, implement them from the bottom up. When people spend more there are will be an increase in jobs that need filled so more employees can be hired. http://www.recovery.gov/About/Pages/The_Act.aspxhttp://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.htmlhttp://www.american.com/archive/2009/november/state-of-the-stimulusA. Young

  12. The economic stimulus package was big news at a time when everyone’s minds were on our economy’s struggle. Although more than 640,000 jobs have been created (recovery.gov), the actual cost of the stimulus package seems to be greater in the eyes of most people because of the high unemployment rates in some of our most heavily populated areas as well as the unfulfilled promise of three million newly created jobs. A recent Forbes article about our job losses states that “Across the board, U.S. companies have been taking advantage of the chronic weakness in the U.S. labor market to cut back on both wages and job benefits. This is now resulting in falling wages and stagnating incomes for most U.S. households” (Lachman). Although Americans voted for hope and change, it seems as if this stimulus package was a waste and yet another addition to our $1.4 trillion federal deficit considering our unemployment rate last month was the highest it’s been since 1983 (BusinessWeek). India recently tightened monetary policy and although it will hurt the poorer citizens with inflation rises, they are expected to have a 6.5% economic growth increase. They did this by ordering lenders to keep more cash in government bonds as well as importance placed on the strength of strong domestic demand as asset prices have been climbing (Bloomberg). According to the article “Countries should withdraw stimulus too late rather than too early” (Thomas). The United States should look at how our economy has recovered from recessions in the past and take more direct action than a $787 billion stimulus package. It may not be pretty for a few months and it’s not something that will happen overnight, but our country has strong leaders with many resources available to them to eventually pull our economy out of this slump.-Nate Solow

  13. The fiscal stimulus provoked optimism in Americans concerning a lowered unemployment rate. However, the unemployment rate as of October reached double digits at 10.2% (1). The market continues to cut wages and job benefits because of the declining rate (1). Other countries seem to be having a greater success at producing jobs and security. Germany’s government controls its job market directly and has significant benefits that stabilize employers that lose their jobs (2). Many European countries also institute apprenticeship programs to influence young worker’s activity in the market (2). European workers, therefore, have more confidence in their labor market and more stability. India has begun to reduce their fiscal stimulus because of economic growth (3). These actions have caused industries to pay attention and invest in India’s market (3). However, UK and American officials have been asserting that countries should remain cautious until recovery is obtained because of unpredictability (4). It would be detrimental to withdraw from the stimulus because it would “undermine confidence” (4). The challenges that are to be approached in the future as our unemployment rate increases are too risky for Americans to consider withdrawing from G-20. 1)http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html2)http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm3)http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHA4)http://www.cnn.com/2009/business/09/05/g20.london.meeting/index.htmlMichelle Heard

  14. After reading Business Week, I learned about the different ideas European nations are creating jobs and stimulating their own economies. Germany is a predominant nation that has effective policies to increase jobs and stimulate their economies. “In Germany, for instance, the government takes a more direct role in the job market, which analysts say is one reason that country's unemployment rate remains steady as U.S. joblessness soars.” (Herbst ,Business Week) After watching Front Line, I noticed that the Federal Government only steps in to help firms when they are in a major crisis. However, if the U.S. government made more of an effort to regulate the status of major firms and corporations then they could take direct action in times of desperate need, but surely in times of little downfall as well to prevent such things as failure. Failing companies puts thousands possibly millions out of work. “It's well known that Germany, along with other European countries, has more generous unemployment benefits that act as automatic stabilizers when jobs are cut. The government has also instituted what is known as a "Kurzarbeit," or "short work" program, which provides subsidies to workers whose hours have been cut, which makes work and a steady income available to more people. Analysts say the program has prevented hundreds of thousands of job losses in 2009 alone.” (Herbst ,Business Week) Our president just signed a bill on November 6th that would extend the unemployment benefits for an additional 20 weeks, which is a tactic some European nations have proved to work to not have such devastating effects to people who lose their jobs. They are more lenient on the unemployed. I believe the U.S. is becoming more lenient now in regards to unemployment benefits because people are losing jobs left and right. Having available subsidies is something very desired in our world today, especially in the U.S. Knowing that employee’s hours are getting cut significantly, but also having something to fall back on to compensate for some of the hours cut is very desirable. I am pretty positive anyone would want to accept all the financial assistance they could get. It is only fair that employees who got their hours cut receive a portion of the money they would have been making if they hadn’t had their hours cut. “The European Germany—along with Austria, Denmark, and Switzerland—also has well-established apprenticeship programs for young workers.” (Herbst, Business Week) When I read about this policy, I thought it was brilliant. The European countries are really looking out for its future. This gives employers to specifically train teenagers in certain skill areas, which will then benefit not only the employer, but the trainee when he or she gets older because he will be able to move on to higher skilled levels of work. This program also saves money that families would have to pay to put their children through school in times of an economic crisis. I believe that the U.S. is adopting European policies to implement in the U.S. after comparing their unemployment rate stability to ours.http://www.businessweek.com/magazine/content/09_42/b4151033735128.htm- A. Ou

  15. According to Recovery.gov, Jobs are being created to help us out of this recession. California, who has one of the highest unemployment rates has so far created or saved the most jobs. (1) Desmond Lachman does not believe the stimulus plan is creating more jobs. (2) The market is still falling so quickly there is no way there are enough new jobs being created, if any are. According to Lachman, the economy has lost about 3.5 million jobs just since the beginning of 2009. (2). I would like to believe the Obama administration is doing everything it can to create more jobs and lower the unemployment rate, but their track recorded so far is not very good, since Obama at one time assured us that the unemployment rate would not raise above 8.25% and it is already at 10.2%. (2) As you can see, both these sources disagree with each other but American citizens can look at their own economy around them and decide which one to believe.1. http://www.recovery.gov/Pages/home.aspx2.http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html Laura Danaher

  16. Anonymous said… While the U.S joblessness skyrockets other nations are taking different approaches for creating jobs. Germany as well as other European countries has more generous unemployment benefits. For example “Berlin pays part of the wages of workers hired from the ranks of the jobless.” (1)This helps employers willing to deal with the costs of training new workers. Another successful method Germany has taken is having people who start a small business maintain receiving “full jobless benefits for an extra six months.”(1) After reading the benefits that Germany has created, I think that an important step to take is to provide relief for those directed impacted by the recession. According to Ross Eisenbrey the most effective way to increase jobs is by “increases in unemployment compensation, COBRA continuation, and nutrition assistance.” (2) Congress will also have to extend benefits to the long-term unemployed who will soon have no income at all. This lengthening will help prevent families from bankruptcy and keep them in their homes until job creation returns. Each nation has to deal with its own pros and cons. For instance the although the U.S government is making an obvious effort to help create jobs, the problem still remains that many of the proposals are going to be costly to implement. In addition, although Germany has these unemployment benefits they are still dealing with matching German engineers and IT specialists to the proper industries. Germany also has to deal with the risk of unemployment harshly rising. (1) http://www.businessweek.com/magazine/content/09_19/b4130044126176.htm(2) http://www.epi.org/publications/entry/pm152/Erica Winchester

  17. Employment rates are as high as they ever have been. The Fed has been trying to lower inflation and President Obama is trying to spend money to lower unemployment. It is horrible to read that the U.S. labor market continues to deteriorate at an alarming rate (Lachman). Statistics for each state show that some jobs have been created, but it is misleading because the unemployment rate is still at 10% or higher. People who can find work are taking part time jobs when they would rather have a full time job with benefits and insurance. Another sad statistic is that fifty-five percent of workers who have lost their job will and do not expect their jobs to come back (Lachman). A couple policies have been implemented to start the blooming of jobs. One policy would offer tax credits for employers that created new jobs, but this would only lead to more money being spent and still no jobs created (Lachman). Germany seems to have a good grasp on what is needed to keep unemployment rate low and at a constant number. Germany takes a more direct role in the job market in which it has more unemployment benefits. It instituted what is known as “short work” which provides financial support to workers who have had their jobs cut or hours and it makes some type of a steady income more available to more people (Lachman). It seems Germany has a started something good for other countries to implement and maybe follow. http://www.recovery.gov/Pages/home.aspxhttp://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.htmlhttp://www.foxnews.com/politics/2009/10/23/obama-administration-hedges-bad-economic-news/

  18. Both Forbes.com and Businessweek.com criticize the Obama administration and the failure of its stimulus plan by citing rising unemployment and deficit. It is obvious that the stimulus plan is not fixing the unemployment problem. Even with all the money spent, unemployment is still rising and is not expected to peak until spring next year. With unemployment rising above the 10% mark, everyone blames the Obama administration for not living up to their promise of the 8% drop. However, if the question is whether the stimulus plan has created jobs, the answer must be ‘yes’. According to recovery.gov, 640,329 jobs have been created or saved by the stimulus plan. California has had over a hundred thousand jobs saved. So the stimulus has saved jobs. The issue is that it has not done enough for the cost. In fact, while over $158 billion has been awarded, only $36 billion has been received. Where is all the money? Why is it taking so long to get to its locations? Is red-tape slowing everything down again? Whose fault is it exactly that the stimulus plan is not even being used efficiently? It is sad that while we ended up in this economic failure because of irresponsible spending, we are now unable to spend at all. Also, I do not think it is fair simply blaming the Obama administration for the failures. The economy was going to collapse no matter what. The issue is whether the stimulus plan helped or not. To make that judgment, we would need to know what would have happened without the plan. Is it the best plan? Perhaps not. Was the Obama administration too confident? Probably. But would we be in a better situation if the White House told us we were going to be this bad last year instead of giving us hope for an upturn? I think that it may be too early to judge the stimulus plan until all the money’s actually been spread out.Referenceshttp://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html http://www.recovery.gov/Pages/home.aspxhttp://www.businessweek.com/magazine/content/09_42/b4151033735128.htmNicole Abin Kim

  19. According to recovery.gov, the stimulus package has created/saved 640,329 American jobs as of 10/30/2009. However, this number does not show the true number of jobs created as it includes jobs that were ‘saved’. There is not sufficient evidence that the stimulus is creating jobs because the reports do not differentiate between jobs created and jobs saved. Also, over half of the states that have created/saved the most jobs still have unemployment rates over 10%. However, the majority of awards have not been completed, so it is hard to determine the long term effects of the stimulus package. Other nations, such as India, have reduced their stimulus payouts as well as reducing taxes. This help to stimulate the economy while avoiding paying stimulus packages that may or may not be effective. The majority of recovering nations, such as Japan and Australia, do still believe that the stimulus is necessary. According to the IMF, the world economy could shrink an additional 1.1 percent if other nations follow India and retract their stimulus packages. The shrinking of the world economy would also hurt the US economy, thus making our economic recovery more difficult.http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHAhttp://www.recovery.gov/Pages/home.aspxhttp://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.htmlhttp://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htmBrandon Lawlor

  20. Based on Forbes.com and Businessweek.com, unemployment rates are higher than ever and the Obama administration has done little to the economy. However, I do not think the Obama administration is the one to blame, as there has been effort shown through Cash for Clunkers, Home Buyer Incentives(1), and other such programs. It is true that these programs and the stimulus plan have not been able to bring the economy up and in the end is very costly, but this matter is not such that it can be done immediately. There have been proposals of tax cuts to increase spending. On the contrary, it may end up being quite difficult. This year, there have been tighter credit card regulations and just simply consumers have less want to buy. With this being said, even tax cuts may only do so much to increase spending. On the other hand, the stimulus package was supposed to create 3 million jobs. In turn, the U.S economy has lost 3.5 million jobs (2). Obviously, the package is not working. Should the U.S withdraw the plan like India? No, the U.S dominates much of the world market, and if any world powers such as India, the U.S, or China make any wrong action, the global economy can suffer. The world markets affect the U.S's economy, meaning if any other economy suffered, economic recovery for the U.S. will also be difficult. The Japanese Finance Minister believes it is still early to retract the stimulus plan, which I agree (3). Economic recovery has only started hitting some countries, only time can tell if the stimulus packages have had any effect. There is only so much that the Obama Administration can do to put the economy back to ease. For the time being, perhaps the administration should look into implementing Europe’s policies into our own, creating more unemployment benefits. Clearly, Europe’s policies are working as their unemployment rate is far more stable than ours. Their “Kurzarbait” program prevented many losses of jobs which could also help out the unemployed in the U.S (2). Besides following Europe’s policies, Obama should come up with jobs more efficiently and perhaps consider overseas trade agreements.(1)http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm(2)http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html(3)http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHAS. Phung

  21. Statistics can be spun to create a pretty picture and with recovery.com that is what I see, a pretty picture. This is the government’s site, they are trying to convince everyone that the stimulus package is working and helping create jobs as the unemployment rate rises over 10%. If these statistics came from an outside organization with no affiliation to the government then I would be more likely to believe them, but I am hard pressed to trust the statistics off recovery.gov. I agree with the business week article that the Obama administration is under fire for the stimulus package and unemployment rate, and in my opinion they should be. The public elected Obama, putting our trust in him that he will help pull us out of this recession, and now he needs to prove to us that he is the man for the job. I understand that this is not easy to pull a country out of a recession, but this is what Obama signed up to do when running for president. He has spent 1.4 TRILLION dollars and the unemployment rate still rose over 10%. Take what has not been spent of the 1.4 trillion so far and restructure the plan so that it is apparent how jobs are being saved and created. By proving to the public that jobs are being created and saved the administration will be under less fire. The growth needed to get us out of this recession will not happen with an unemployment rate of 10% so something has to be done by the administration to curb the unemployment rate. Putting people back to work will stimulate the economy and that is what the administration needs to make sure that they do. – Sara Dolinger

  22. While many developed nations are still struggling to cope with the recession, India has voiced its choice to cut its stimulus program because according to Prime Minister Singh, there are visible signs of economic health in India (2). While this may be a good for India, other countries have not yet seen the end of this global recession. India's withdrawal of its stimulus program will leave other countries unsupported during times of uncertainty. But maybe the US and other developed countries struggling with the recession should look at the successes of India and Germany and supplement some of their policies into their stimulus packages. The US, where the unemployment rate is currently 10.2%(2), could especially try to mimic the unemployment benefits offered by Germany and other European nations. Policies such as subsidies for those with cut hours, and apprenticeship programs (3). These policies have been shown to be effective in these countries, so it would be foolish to not try them in our sluggish economy.(1) http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html(2)http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHA(3)http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022_page_2.htm-Andrew Kim

  23. In a recent article in the Washington Post Kari Lydersen analyzes the stimulus package through the eyes of a Chicago window and door company. With the help of the American Recovery and Reinvestment act, "Serious Materials" promised to re-hire all 250 of the workers they laid off by the summer. Unfortunately they did not receive as much private investment as they previously hoped. Jared Bernstein, Joe Bidens chief economic policy adviser says private investment is what is going to help stimulate the economy. In some instances companies are going to get enough help to succeed, and in some instances they will not. Bernstein agrees with what is suggested in all 4 of these other articles that the package is going to take time to work. One important industry is the production of environmental friendly machinery and products. The government put over 5 billion additional funding to the Weatherization assistance program hoping to increase production and encourage private investment. That industry shows promise for new jobs and sought after products. The economy will get back on its feet with the help of the stimulus, it is just going to take some time. -Gus Cramer1. Lydersen, Kari. "Stimulus Funds Yet to Open Many Windows." The Washington Post. 18 October, 2009. A3.

  24. The stimulus package passed earlier this year has had positive effects around the country but I believe that a bigger more robust stimulus may be necessary to fully turn the U.S. economy around. In my part of the City of Richmond jobs have been saved by stimulus money, however it remains to be seen once the stimulus is over if the jobs remain. Where I think the stimulus has been most successful is in its provisions for the un-employed, extending un-employment, as well as helping keep those who are un-employed insured with funds for the COBRA program. The stimulus also provides billions for greatly needed improvements to the transportation grid as well as many other infrastructure improvements. However, at the end of the day I’m not sure this stimulus is big enough to create the jobs that President Obama and the American people want to see.-Will Carter

  25. I agree with Mr. Lachman, writing for Forbes.com, when he says that the number of jobs created by the stimulus package reported by the Obama administration are not realistic. According to an article written by the Associated Press, the stimulus package has done little to nothing to help create or protect jobs, especially in Michigan. The examination “found the biggest impact was spurring or protecting public-sector or summer jobs — not private-sector jobs.” The article does state that on paper the impact the stimulus has had on the economy is positive, which could help with public outlook. However, the numbers reported have at the very least been fabricated, if not completely made-up. The Associated Press reported that General Motors ”reported 105 jobs saved or created … but later said no jobs were retained or added.” A more astonishing figure is that “fewer than 700 awards and received some money, and nearly half of those – 327- had created one job or less, at a cost per job of $2.7 million.” Keynesian economic theory says that government spending can help boost an economy, but only when the spending reaches where it needs to go. The Obama administration needs to do something else besides just throwing money at the problem. Alan S. Blinder of The Wall Street Journal has two ideas: tax breaks for companies who create new jobs and direct public-service employment. The tax break is a more conservative hands off approach, which seems less likely to happen with this administration. The direct public-service employment would need to be similar to FDR’s alphabet soup agencies during the Great Depression. The government would hire people directly to different jobs (mostly manual). The plus side of this is that it could rebuild our increasingly deteriorating infrastructure, however, the government would need to be careful that they do not undercut private companies and put them out of business. Both of these solutions, however, will deepen the national budget, but right now that fact doesn’t seem to bother our elected officials.-Joe Russohttp://www.google.com/hostednews/ap/article/ALeqM5gsDz-25dDIBm6wdoCSQxslk8ondwD9C07P0O0http://online.wsj.com/article/SB10001424052748703683804574533843234723498.html

  26. The crash of the US economy has affected much more than our jobless recovery, the housing market and the collapse of the most influential banking systems in the world. The global economy as a whole is suffering. The G-20 is struggling to keep the countries together for the concepts it stands for. The G-20 mainly focuses on policies for growth and dealing with global financial crises.On November 9th, 2009 the Prime Minister of India, Manmohan Singh, announced that India may be winding back on fiscal stimulus. India is an economy that is highly affected by natural resources as well as by the global recession. Agriculture is approximately worth 1/5th of India’s economy. With demand up and concerns of inflation, India fears the stimulus may not be needed. India also has no intention of asking the International Monetary Fund for help. However, major industrial firms such as Tata Steel, are suffering due to the freeze in the world credit markets. India, along with many other G-20 groups believe the global recovery will be “long and uncertain (2)”. India’s aim for internal growth is a strong domestic demand. Many countries are trying to focus on their internal economy rather than trying to fix the world’s first. Maybe, the US banking system should have tried this rather than abusing the financial systems. However, with all the major economies of the world focusing on their own economies there will be no need for G-20 since its main purpose is to construct discussion between industrial and emerging open markets.Cassandra Lenski1. http://news.bbc.co.uk/2/hi/in_depth/business/2009/g20/7897719.stm2. http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHA

  27. Upon my analysis of the recovery.gov website, I do believe that the $787 billion U.S. economic stimulus passed earlier this year is creating jobs; The Clean Water Project, specifically, is currently taking place in South Dakota, Iowa and Minnesota, and“is expected to create/save approximately 600 construction-industry jobs” (1). Although the website stresses saving/creating new jobs, it also stresses improving our environmental health while doing so. Other nations, such as Australia also seem to be using this method of saving/creating jobs with an environmental goal; The Prime Minister's $10.4 billion stimulus package to the Australian Greens will “create 160,000 jobs and power Australia's green economy” (2). “The Group of Twenty (G-20) Finance Ministers and Central Bank Governors was established in 1999 to bring together systemically important industrialized and developing economies to discuss key issues in the global economy, and promotes open and constructive discussion between industrial and emerging-market countries on key issues related to global economic stability” (3). The withdrawal of stimulus from the G-20 economies would completely devastate our economy, increasing unemployment rates along the way.1.http://www.recovery.gov/News/featured/Pages/CleanWaterSouthDakota.aspx2.http://greens.org.au/node/33553.http://www.g20.org/index.aspx

  28. I believe that the withdrawal of stimulus from the G-20 economies would greatly impact our own stimulus. As we know, by withdrawing stimulus from a nation’s economy, the people could possibly have a decrease in the amount of money that they have. With this decrease in money, the people are less willing to spend. The first G-20 country to withdraw is India. India’s reasoning to cut the stimulus starting next year is due to the “concerns that an inflation flare-up may hit the pockets of close to 800 million Indians (1).” While this reasoning is understandable, by cutting their stimulus, the Indian government has also cut the amount of money that the population of India has to spend. Now imagine if more and more countries begin to do this. If England, Japan, China, the US, Germany, etc. all did this there would be a limit on the amount of money that is in circulation that the countries and their people use to buy and sell. With this limit on money the world has less trading of goods and services and will have a harder time climbing out of this recession. In times when there is a recession the best thing that a country can do is “withdraw stimulus too late rather than too early (1).” By withdrawing the stimulus too early the nations provide the risk of worsening their economy, while if they wait until the economy is stable again, they are in the clear.Michele LaRosa1. Goyal, Kartik and Cherian Thomas. “India’s Singh May Lead G-20 in Fiscal Stimulus Exit (Update 1).” http://www.bloomberg.com/apps/news?pid=20670001&sid=as11r9t5xqCs .

  29. The fiscal stimulus package has not been as effective as the white house intended it to be when it was implemented last year. The huge $ 747 billion package that was supposed to create or save 3 million jobs has only managed to add about 1 million and even that number is thought to be high by many skeptics. Looking at how the package has specifically affected Virginia, 2223 grants were awarded for about 3 billion dollars (1). However, this money provided the state with only 7,772 jobs (1). Here in Harrisonburg area, the package issued 13 grants, 3 contracts, and a grant of $ 61,125 that was given to JMU. This did not add any new jobs to the university (1). The package is creating jobs, but not fast enough to exceed the rate the economy is shedding jobs; a rate that is still similar to what is was before the fiscal stimulus package. Another problem that is also connected to the ineffectiveness of the package is the unemployment rate. It is currently at about 10.3 percent and there are no signs of it going back to single digits (2). The package hasn’t had much effect on the rate, which still doesn’t account for the extremely high number of people who are involuntarily employed part-time. Improving the amount of jobs created per dollar of stimulus is a tough issue that the White House needs to address. Adding jobs in new industries, like green technology, could be a good way to jump-start the job market and reduce unemployment.1) http://www.recovery.gov/Pages/TextView.aspx?data=recipientTopJobs&ViewAll=1002) http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html3)http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022_page_2.htmMatthew Rego

  30. The stimulus package that the government has passed and put into place is designed to create more jobs for Americans and put more money into play in our economy. The problem that the government is currently facing is counter-acting the recession and the affect on the job market. It is my belief that the current administration must ride the wave of their past decisions and instill international confidence in stimulus packages. If more countries, especiall developing countries, follow India's precedent of dropping the stimulus plan, then the world economy will shrink. This slowing economy will have a large affect on the US economy if we continue on a path that the international community is moving away from. The sheer number of jobs created/saved shows that there is hope with a stimulus package. President Obama needs to instill confidence throughout the international community that over time, the jobs being created/saved by the stimulus package will translate to a stronger economy. I believe that it is too late to try and start over from scratch and that the government must continue to improve upon a stimulus package that has given some hope to Americans. (1) http://www.recovery.gov/Pages/home.aspx(2) http://useconomy.about.com/od/candidatesandtheeconomy/a/Obama_Stimulus.htm-Grant Morgan

  31. Although Obama said, “I promise I won’t rest until America is prosperous once again” (1), there is little hope in the truth behind that bold statement, causing a nervous stir across America. We have yet to see the light at the end of the tunnel, and I strongly feel that the solution couldn’t be more obvious; create an abundance of new jobs. Unemployment rates are skyrocketing that need to be alleviated through urgent action. “Most mainstream economists are not expecting unemployment to peak before the spring of next year” (2) predicting we can expect these conditions will worsen before they improve. They could create social work projects that receive a salary, hire more scientists and technicians to research and develop new vaccines and tools, or provide environmental, energy efficient jobs that satisfy the ever-popular “green” mindset. If we have a more legitimate education system, the possibilities are immense for future developments of jobs. Also, I feel we should follow in India’s footsteps and “begin winding back fiscal stimulus” (3) which, although it is a drastic move, would at least be another effort to start solving this crisis. Unsure of what lies ahead in the future(1) http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm(2) http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html(3) http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHASadie O'Connor

  32. The first week of November, 2009, was an unfortunate day for the American Economy. Unemployment rates hit a 26-year high (1), giving many jobless Americans little reason to hope for change anytime soon. The average length that people are staying unemployed has now risen to 26.9 weeks, and the average hours of a work week has stayed its lowest since the 1960s (1). These facts surprise many of the people who believed in the Obama Administration’s promise to turn this economy around and make America prosperous once again. Unfortunately, President Obama signed the Recovery Act in February and little since then has changed for the better. However, as much as some people like to believe this, the government does not control the economy. They cannot just create jobs and solutions that fix everything out of thin air without trial and error. The Recovery Act put billions of dollars into our economy to help stimulate it and provide more jobs. America, though, did not have $787 billion dollars lying around, so we had to borrow it from other countries, putting us into more debt than we’ve ever been in; approximately $1.4 trillion (2). Even with all of this new debt, the billions of dollars in the stimulus plan are not all going directly to creating new jobs. The government has divided and dispersed the money between 28 different agencies allowing them to decide its best use (reporting weekly) (3). Though there is no rule that states the money must be used solely for creating new jobs, but simply in a way to stimulate this mess of an economy we currently have. Many people, including myself, would thoroughly enjoy believing Obama when he promises not to “rest until America is prosperous once again” (2); however, maybe it would be best for us to stop relying on one man and pull out from under all of the so called “stimulus” plans and let the economy run its natural course and rebuild itself with time and effort from our country as a whole. (1) “Yankees Win, Workers Lose: Unemployment Rate Hits 26-Year High” by Aaron Task – Finance.Yahoo.Com(2) “Seeking to Grow Jobs, Not the Deficit” by Moira Herbst – Business Week(3)Recovery.govA. Sjogren

  33. The stimulus package as of October 30,2009 has created 640,329 jobs (1), is that enough to make a difference? I say no, not yet. The stimulus package came with a goal of number of jobs to be created, "they told us that the stimulus would create around 3 million jobs" (2). As of right now I cannot see the US attaining this goal in the near future. We need those jobs to created ASAP and not at the pace we are going right now because it is obviously not making a difference on our economy seeing that the unemployment rate is now at 10.2%. However, it seems that China's stimulus package that was implemented around the same time as ours is actually having a positive affect on their economy.For instance, "Chinese officials now expect to easily achieve the 8 percent goal for growth this year,"(3) I don't see any significant growth in our economy coming from our stimulus package. It has come to my attention that the Government has been spending the stimulus money on projects that don't take affect on our economy immediately. For example, "green energy projects", yes they will benefit us in the future although, we need the help now. "Wind and solar energy projects are great causes that will have dividends for decades to come. Such projects are capital intensive, take a significant amount of time to get off the ground and create too few jobs at too great a cost."(4) The point of this whole package deal is to "recover and reinvest", we are not recovering as fast as we could be and as far as reinvesting goes it is obviously investment into the future economy. The imminent investment we need to fuel our economy and regain strength is absent and this to me puts us in further danger.(1)http://www.recovery.gov/Pages/home.aspx(2)http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html(3)http://www.dailyfinance.com/2009/07/16/chinas-gdp-surge-why-is-their-stimulus-package-working/(4)http://business.theatlantic.com/2009/11/should_stimulus_projects_create_jobs.phpR. Pulley

  34. Even though there has been mention that our economy is starting to appear to be on its way up, that is not saying that our rising economy is going to create jobs for everyone as it digs itself out of the deficit it has fallen into. "the United States could be facing a painful jobless recovery." (1) The United States can not fully come out of a recession and stay out of one unless more jobs open up to employ those who have lost their job over the past year. Congress has been trying to come up with different plans to boost employment but they have not been specific with their plans for fear of being criticized by the opposing wing. Both sides of Congress agree that our economy is not in good shape and massive measures need to be taken in order to get it back to even a fraction of what it was. These large measures worry some people that it is going to raise the national deficit by increasing government spending. Increasing government spending might help initially, but in my opinion it will not solve the problem in the long run. The place where our unemployment rate is now is consistent with where the unemployment rate was during the peak of the past two recessions we have had. (2) This is not reassuring news. It is also not reassuring how Obama is still convinced that fiscal stimulus is his go to plan. He convinces America that fiscal stimulus is adding and creating jobs on schedule according to the plan, but it is not creating enough.(2) The recession we are living in right now is one of the worse in recorded history. I feel that not enough was done early on in the recession to prevent it from getting as bad as it did. It is alarming to me that some countries in the G-20 are beginning to withdrawing from the fiscal stimulus plan to support global recovery. (3) It is difficult for me as a college student in America to realize that there is a problem with the economy in my own country let alone other countries around the world. I never really let myself think about how the failure of economies around the world could have a significant impact on our economy here at home. I think that although there appears to be an upturn in our economy, we are far away from being where we were a little over a year ago.1.http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm2.http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html3.http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHA

  35. When looking at recovery.com, the numbers seem to shed a positive light on what the stimulus package has created in terms of the numbers of jobs created or saved. Although California boasts its over 110,000 jobs created/saved, being given over $8 billion in funds already would seem to be able to save a lot more jobs than that. The problem lies in the allocation and usage of the funds. When $225 of “recovery funds” is being spent on creating groups in a non-profit organization for violence against women, the money is not being used to help the recession or creating anymore jobs (1). Of the $787 billion in the stimulus package, plans were proposed that would give employers tax credits in the first and second years of employment, but because of their costly implementation, they were never put in place. This has allowed for these previous plans of increased job creation to take the back burner to the “extension of existing programs” (2). The money is there and needs to be used correctly to create the jobs necessary. Programs necessary to do this can’t be ignored because they are too ‘costly.’ (1) http://www.recovery.gov/Pages/home.aspx(2) http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022.htm

  36. Rahm Emanuel, the president’s chief of staff, declared (in reference to the stimulus) that “the most important number … is how many jobs it produces, not how many votes it gets.” So where are the jobs? At the dawn of the stimulus debate, Obama’s economic advisors produced a chart dubbed the “unfortunate chart”. This chart plots two lines: The unemployment rate with and without the recovery plan up until 2014. The optimistic line, and the one used to sell the stimulus package, shows unemployment peaking at about 8% in the 3rd quarter of 2009 and dropping immediately thereafter. The other line, the one that shows what would happen without the stimulus, shows unemployment peaking around 9% in 2010 and steadily falling in the succeeding years. This month the stimulus reached 10.2%; a percentage point higher than the worst-case scenario line charted in the “unfortunate chart”. I thought a stimulus package was supposed to give the economy a little bit of life, not watch by as it slowly dies. Now, I know that our economy will recover and come back to a healthy life so to speak, but it needs to happen sooner than later. The unemployment rate doesn’t even include those who are still in the job force looking for jobs, or those who are working part time and desire a full time job and salary. I do not expect our economy to recover over night, though something else must be done to further create jobs now, along with in the future.-Troy RiemerSourceshttp://www.nytimes.com/2009/11/16/opinion/16douthat.htmlhttp://m.factcheck.org/Images/image/2009/Articles/6_16_2009_Making_Sense_Stimulus_Spending/Romer-Bernstein_Chart.jpg

  37. Many European nations disagree with Obama's stimulus package, claiming that the "Buy American" viewpoint will put Europe into an unstable economic situation. "The European Union’s crisis of leadership during the economic downturn was thrown into sharp relief on Wednesday, as the current president of the 27-nation bloc labeled President Obama’s emergency stimulus package a way to hell that will undermine the stability of the global financial market." (1) Although Europe has a right to not want America to take a protectionist standpoint in order to protect their producers, the US has already claimed to limit what they are planning to cut back on. "The "buy American" clause in the President's economic stimulus package states that only U.S. iron, steel and manufactured goods can be used in construction projects funded by the bill." (2)This cut back on importation may affect some global trade, but EU countries themselves are currently seeking more protectionist views for their own economies. "In focus are plans such as France's $10 billion move to bail out its car industry by requiring firms to source car parts from local suppliers." (2) As for all of the countries involved, both EU and US, leaders are activating various stimulus plans in an attempt to activate the global economy once more. "According to the European Commission, the executive arm of the 27-nation bloc, the total fiscal stimulus in the EU equals between 3.3 and 4 percent of its gross domestic product…The U.S. stimulus plan equals about 5.5 percent of its GDP." (3) European countries and the US alike need to realize every country's need for protectionism in this difficult economic time in order to keep jobs available, as well as keep goals in mind to keep globalization intact.(1) http://www.nytimes.com/2009/03/26/world/europe/26czech.html(2)http://www.time.com/time/world/article/0,8599,1877162,00.html#ixzz0X5GZrkOt(3) http://www.reuters.com/article/turkey/idUSLH44404720090317-Kelly McClure

  38. If G-20 countries were to begin bailing out of their own stimulus packages it would be disastrous for not only the United States economy but also many other developed countries across the globe. India may want to withdraw the stimulus to increase their growth again but it will be at the cost of every other economy it is linked to. If India were to cut out of their stimulus then they would of course need to find new markets for their sudden and extreme production of exports otherwise sell them at an extremely reduced price to their main buyers, being North America and Western Europe. Since These two global economies are still recovering though this may well stimulate growth in both of them with not much of a chance of causing another crisis. But India would only be the first and China would soon follow as well as other developing countries that are fearing the constantly increasing inflation rate. If multiple exporting powerhouses such as India, China, and Korea were to drop their economic stimulus around the same time and begin selling their goods at prices unaffordable to most buyers they would inevitably form another bubble similar to the housing bubble only on a global scale because almost no one entity that would want these goods can afford them without borrowing money that they can’t return.-Daniel Travi

  39. Although the Obama Administration claims to be creating new jobs with its $787 billion Recovery Act, less than half of the “funds rewarded” have become “funds received”. In the top 10 states with the most number of job saves recorded by the Federal Government, unemployment levels still range from 8.2% to 15.3%. (1) This practically contradicts itself in the fact that the government has claimed to have saved a large number of jobs, but that change has not managed to decrease unemployment (which should be one of the most important effects). At the beginning of the Obama Administration, claims were made that the unemployment rate would decrease enough that it would not rise above 8.25%. (2) The fact that unemployment in the states with the most jobs saved are all higher than this stated 8.25% number may be showing us how severe this recession really is, and how the federal government is not really doing what they say they are. There has also been questionable tallying of the number of jobs, and much speculation on whether the process is accurate, many claiming that the government is being too “rosy” with their calculations. All of these factors and more are proving that the fiscal stimulus may not have been the most productive way to fix this economy. (1) http://www.recovery.gov/Pages/home.aspx(2) http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html-Melissa Gehlbach

  40. On recovery.gov, I typed in a random state to determine whether the data and statistics they are offering actually tell us anything. In Des Moines Iowa, six loans had been received totaling about 2 million. It seems to me that the government is at least making some progress with the stimulus, although it was rather unnerving to me that two million dollars created all but twenty three jobs. However, I also noticed when they list amount of jobs, it is amount of jobs created/saved. Subtle wording like this can make the stimulus seem more effective than it actually is since “saving” a job could mean many things, such as keeping an employee on, but perhaps paying them less for the same amount of labor. Desmond Lachman picks up on this dissonance in the commentary “What Jobs?” in the article he states “The sad reality is that far from creating jobs, the U.S. economy has lost around 3.5 million jobs since the start of this year”. The entire commentary portrays the US economy as a sailor lost at sea, his boat sinking, he uses a bucket to try to remove the incoming water. While this is a temporary fix, the hole in the boat, the real problem, isn’t being addressed and the boat continues to sink. Lachman argues that even if people are employed, unless their wages increase they are not going to consume. Consumption is important because it’s what fuels our economy. I strongly agree with him on the topic of the stimulus package. Unless it is creating well paying, permanent jobs for people, it is not particularly helpful in getting to the root of the problem. People need complete confidence in the economy once more so they are willing to spend their hard earned cash. This won’t happen until the government succeeds in completely rebooting the market, not taping a bandage over the wound.http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.htmlhttp://www.recovery.gov/Pages/home.aspxErin Sherwood

  41. As of October 30, 2009, recipients have reported that 640,329 jobs have been created or saved. (1) However, many people in the United States are curious on how the unemployment rate is above 10%. People feel that the fiscal stimulus has not created enough jobs for the unemployed. The unemployment rate has risen from 9.8% to 10.2% in October. (2) Meanwhile, many organizations are continuing to add jobs in the economy. Health care has added 597,000 jobs since the start of the recession. (2) Temporary help services have also added 44,000 jobs. (2) Also, the average workweek hours and hourly wage have also increased during the past few months. Clearly, many jobs have added during the past few months to help the high unemployment rates. 1.Recovery.gov. 30 Oct. 2009. Web. 17 Nov. 2009www.recovery.gov/Pages/home.aspx>.2."Employment Situation Summary." U.S. Bureau of Labor Statistics. 6 Nov. 2009. Web. 17 Nov. 2009.www.bls.gov/news.release/empsit.nr0.htm>.Allie Birmingham

  42. Although at first seeming counterintuitive, India’s withdrawal from the stimulus plan will have positive effects on both the economy of India and United States. India is already seeing a significant increase in rate of economic growth and may be rapidly approaching a high rate of inflation as well. While inflation in the United States may appear only as collateral damage of the resuscitation of our economy, in India inflation is much more harmful to its people. “An inflation flare-up may hit the pockets of close to 800 million Indians who live on less than $2 a day” (1). By withdrawing from their stimulus plan during economic growth, India has succeeded at stimulating their economy as well as protecting their vulnerable citizens. In America, where our economy has not yet come around the way we hoped, we should praise India’s decision. Much of our sales on goods is produced and manufactured in India. Goods sold in Wal-Mart stores are produced in India, often by the same people that are most affected by rising inflation rates. India’s withdrawal from stimulus plans is protecting workers that produce goods and supplies needed in America. When workers in India are able to enjoy constant employment because of steady economic conditions, this will in turn have positive effects on quantity and price of imports, helping out our economy. Every nation is facing some of the same economic conditions, but the way in which they improve their situation is specific to each country (1). India’s plan to look out for their citizens is not selfish and will indirectly help the economy of the United States. 1)http://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHA

  43. The unemployment rate is growing at an alarming rate, "at 10.2%, the jobless rate has increased 3.6 percentage points from a year ago. It has doubled since March 2008." The future for our economy looks grim. The Obama administration claims that it has and is creating jobs under the stimulus packages, but upon closer inspection the money has not been completely distributed and what has been distributed is drying up quickly. Upon closer inspection of how many jobs have been saved and how much saving these jobs has cost the federal government the number of jobs created is diminutive to the funds allocated. For example, the city of Pittsburgh (with the zip code 15206) has saved a mere 37.7 jobs at the cost of $2, 909, 297. The money from the stimulus packages is creating temporary jobs for the Pennsylvania Department of Transportation, or PennDOT. PennDOT has received $814, 939, 617, which should go towards the construction of roads and bridges. However, when the construction on bridges and roads is completed, those hired under the stimulus package will be out of a job once again. The jobs that have been created by the government's $787 billion are mainly temporary and will not help the economy in the long run. Not enough jobs are being created and the national deficit is increasing. There are approximately 305 million Americans in the United States. If the unemployment rate is 10.2%, over 30 million Americans are unemployed. If the $787 billion stimulus package is helping, then the results are not visible at this time. Out of the 2242 awards granted to the state of Pennsylvania approximately 85.1% have not even been started or are less than 50% complete. Healthcare reforms although necessary are not viable at this point and date in time because the United States does not have the money necessary to overhaul the healthcare system. Before any major changes are made to healthcare, Congress and the Obama administration need to find a way to create enough jobs to significantly lower the unemployment rate or the economic repercussions could be ten times as worse in the future.1. Statistics from Recovery.gov 2. http://money.cnn.com/2009/10/30/news/economy/Stimulus_jobs_created/index.htmS. Scharf

  44. Most of the data relates to jobs “created/saved” or how much money was granted to a certain company or government branch in order to “create jobs”. Some individual projects plan on creating a certain amount of jobs or claim to have created a certain amount. New roads and other civil service projects seem to be the most popular recipient of stimulus money, as well as large corporations based out of certain states. If other countries were to withdraw their stimulus it could have serious negative effects on the US stimulus. With so much money being borrowed from other countries, if one of those countries’ economies failed again because they withdrew their stimulus package, that failure would directly impact the US. Likewise if the country is withdrawing its stimulus, that hopefully means the industry and economy is improving in that country. This type of upturn could increase investment in the US as well as US investment in a growing country. India ordered its banks to keep more cash in government bonds and the country has been in talks to giant wholesalers and other companies to help continue to expand its economy. K. Winter

  45. On the surface, it appears that the stimulus package is actually stimulating jobs. According to Recovery.com, a total of 640,329 jobs have been created or saved due to the stimulus package as of October 30, 2009. However, digging a little deeper will show that in reality, the U.S. economy has lost around 3.5 million jobs since the start of this year alone. Furthermore, the past three months have seen around 175,000 lost jobs each month. If this massive stimulus package isn't returning massive results, then what is the problem. A solution that seems to be working is the minimal benefit plan Germany exercises. With workers not receiving benefits like the US, unemployed German workers are simply more motivated to learn new trades in order to re enter the labor force. Since this plan was implemented, the unemployment rate has decreased from %12.7 in 2005, to a low of %7.1 last November. Since the recession, this has only fluctuated a small amount, leveling out at %8.6 Although this plan will most likely not be implemented in the US, it is interesting how it has helped Germany out in recent years.Ryan waldron

  46. The $787 billion that has been assigned by the American Recovery and Reinvestment Act is not doing enough to alleviate the economic downturn. The unemployment rate of most states is above 6%. This calls into question the effectiveness of the government's stimulus plan. Many jobs have been saved but it isn't enough to bring the economy back to where it was. The Recovery Accountability and Transparency Board is part of this act and is geared towards eliminating waste and fraud in the government. This plan is a good idea but it won't do much to improve the economy. The resources should be used for programs that will attempt to further the economy more quickly and to help sustain it so we don't end up in the same place we are in now.1)http://www.recovery.gov/Pages/home.aspx2)http://www.recovery.gov/About/board/Pages/TheBoard.aspx

  47. Possibly the problem with our current stimulus package and the actions our government is and has taken to reduce our unemployment rate and economic recession is resorting to moral hazard. For example, Ben Bernanke was right when he tried to avoid buying out AIG and the auto industry bailout. However, in the past, Roosevelt’s Recession was overcome by the “New Deal” that still consisted of high government spending, but instead was directed towards creating new government run programs like the CCC and TVA. Maybe our current administration could have prevented the rise in unemployment by focusing on programs like Roosevelt’s instead of buying out already failing companies.Aaron Capek

  48. With unemployment rates in the US at 10.2% the stimulus plan hasn’t done anything near what it was said to do which was to not let unemployment rates rise above 8.25% (2). The US government is said to have created over 640,000 jobs we are still losing way more jobs then are being gained (1). On their website they just say how many jobs were created and do not really back up that information that I can see. The stress test for the 19 major U.S. banks is likely further loan losses at the banks, which will almost certainly prolong the country's present credit crunch (2). With the credit crunch going the money people are willing to spend goes down and that keeps companies from making new products because they have to sell the inventory they already have. This in turn loses more jobs for the American people because companies are not making new products and don’t need more workers. One way that I think the government could increase jobs in cutting down the imported items we are receiving and increase the number of products that we export. This would add jobs because we would need more workers to make products for the US population to consume and items to be exported to other countries. As of now the government is just not getting the job done and needs to explore new ideas to help the unemployment level.http://www.recovery.gov/Pages/home.aspx (1)http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html (2)-Jason Merlino

  49. When I first looked through the Recovery.org website the stimulus plan seemed to be having a positive impact on the economy with 640,000 jobs and counting jobs being created. But as I continued to look through other websites they seemed to have contradictory statistics. According to Desmound Lachman of Forbes.com the U.S. is still “shedding job” at 175,000 a month, which can be related to the pace of unemployment in the two previous recessions. These startling statistics make me begin to question whether the stimulus package was a good idea. The article discussing India and their plan to minimize their stimulus package makes the arguments against our own stimulus package more legitimate. Throughout Germany and other European nations have begun to implement alternative ways of decreasing their high unemployment rates. For example in Germany they have a program called “Kurzabeit” or “short work”, which supplies workers who have lost working hours with subsidies to make sure that a steady income is available to more people. I feel that the United States should begin to look farther outside its borders for ideas on ways to help out skyrocketing unemployment rates. Because programs like this have worked in to numerous countries throughout Europe it raises much smaller risks.http://www.recovery.gov/Pages/home.aspxhttp://www.bloomberg.com/apps/news?pid=20601091&sid=aPmtfYMoPTHAhttp://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022_page_2.htmhttp://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.htmljill coffey

  50. The Obama administration has claimed that they are creating a numerous amount of jobs and that the $787 billion U.S. economic stimulus they passed was the right move. If this is true then why is it that right now the unemployment rate in the United States is the highest it has been since the post-war period and according to many economists it is only getting worse (1)? The employment rate is at 10.2% and everyday people everywhere are losing their jobs or getting their wages shortened. Even worse about 5.6 million out of 15.7 million unemployed people are qualified as "long-term unemployed”, the highest it has been since 1948 (2). These people are unemployed for 27 or more weeks. That is almost 7 months of not having a job, not earning an income, not being able to support themselves or their families. So if Obama claims his plan is working then why are the facts and figures of unemployment so high and the worst they have been in years? I believe we need a new plan in action, perhaps look on to other countries’ economic polices. I think specifically we should follow what Germany and other European countries are doing for their economies. “In Germany, for instance, the government takes a more direct role in the job market, which analysts say is one reason that country's unemployment rate remains steady as U.S. joblessness soars.” (2). They also have “more generous unemployment benefits that act as automatic stabilizers when jobs are cut” (2) and other ways too stimulate job growth, which I think could be greatly beneficial to the United States as well. (1) http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html(2) http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009116_475022_page_2.htm- Megan Matesic

  51. After reading the Business week article, “Seeking to Grow Jobs, Not the Deficit” it is clear that our country in lacking in the department of job creation. Written by Moira Herbst, the article describes the need for the U.S. to create jobs instead of mainly fixing taxes and government spending. A key example is Germany where the unemployment rate remains steady. This is due to the fact that the government set up more benefits that people get when they are laid off work or unemployed. In doing this, people are less likely to decrease spending due to the fact that they no longer have a job but they are still given steady benefits. This keeps the unemployed people’s cash flow steady as well as their spending. I think that this also provides them with an incentive to go out and look for another job. They do not have to worry about the burden of having less money and where to decrease spending. Their primary thought would be finding a new job in the market. Also created by the government of Germany, is a program that provides short work for those that need to be in the work force or need to pick up more hours to keep their money flow at a substantial area. This program is also a good way for young people to get into the work force because they can start out small and work for a while becoming accustomed to the work force. This and certain apprenticeships are provided to the youth in many European countries to allow them to get a taste of what is ahead of them in years to come. Creating jobs rather than just fixing certain aspects that affect the economy will help the U.S. to become more stable in their economics and possibly even prevent massive unemployment rates in the future that inevitably affect the nation’s economy.C. Shott

  52. although the stimulus package has done far less then our government predicted, it is still having an effect. in February, the government predicted that "the stimulus would create around 3 million jobs. They also assured us that with the stimulus unemployment would not rise above 8.25% of the labor force, while by the end of 2010 the stimulus will have brought unemployment down to below 7.25%"(1). with our current unemployment rate above 10% and not looking to fall anytime soon, this prediction has failed. still, the package has reportedly saved hundreds of thousands of jobs, and many of the funds haven't yet been received, so this number should keep growing(2). although the US economy may not be where the government wanted to put it, it is still taking less damage from the recession then a lot of countries, with Spain above 17% unemployment and south Africa above 20% unemployment(3). Also, the value of the US dollar has strengthened since the economic crisis(4), showing that the US is not being hit as hard, and is expected to recover more quickly then many other countries. how much of this is due to our stimulus package is unclear, but I feel that some credit must be given to it.(1)http://www.forbes.com/2009/11/06/jobs-economy-bailout-opinions-contributors-desmond-lachman.html(2)http://www.recovery.gov/Pages/home.aspx(3)http://www.chinadaily.com.cn/world/2009-10/02/content_8761588.htm(4)http://www.savingtoinvest.com/2008/10/us-dollar-rising-and-outlook.htmlAdam Kriz

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