Corvette Forum : DigitalCorvettes.com Corvette Forums banner

1 - 16 of 16 Posts

·
Registered
Joined
·
19,914 Posts
Discussion Starter #1
President Obama is unveiling this week what some have dubbed his "second stimulus." There's $50 billion more in infrastructure spending on roads and bridges, $100 billion to make a research and development tax credit permanent, and a $200 billion program to convince America's boardrooms to buy more equipment in the next two years.

Will this really help the economy or is this an Obama political stratagem to pull the Democrats out of the basement before the November mid-term election?

Bang for the Infrastructure Buck

Speaking in Milwaukee on Monday, Obama said his infrastructure proposal "will not only create jobs immediately, it's also going to make our economy hum over the long haul." He said that over the next six years, the money would finance the construction of 150,000 miles of road, 4,000 miles of railways and 150 miles of runways and invest in a next-generation air traffic control system to reduce congestion at the nation's overcrowded airports.

Obama said the plan would be paid for and would not add to the deficit. It would be paid for over 10 years by closing tax loopholes such as manufacturing tax deductions and depreciation allowances.

"I think this is going to help around the edged – I'd certainly like to see more," says Augustine Faucher, director of macroeconomics at Moody's economy.com. Faucher says that every dollar of government money spent on infrastructure creates about $1.57 of higher GDP in the following year.

Even if the new money is not spent until 2012, Faucher says, he is forecasting unemployment at between 8% and 9% by then. "There's still going to be a lot of unemployed workers out there in 2012, "so if we can get some more spending and get some of those people working I think that's fine."

Just Moving Money Around?

But John Makin, a visiting scholar at the American Enterprise Institute, says that if Obama's infrastructure proposal is paid for by taking funds from other federal accounts, that won't help boost the economy. "If you're going to pay for it, its not stimulative, it's just re-allocative," Makin says. In other words, there won't be new spending, just shuffling money from one pocket to the other.

Makin was particularly critical of Obama's plan to try to cajole businesses into spending more for equipment, machinery and software in the next two years rather than waiting for later developments on the economic front to decide.

'I think anybody who wants to do any capital spending will do it at the end of 2011," Makin says. "There is huge excess capacity now -- it's not that we're short of capacity. It's the same thing as Cash for Clunkers and the home buyer's tax credit -- pull the spending forward."

Thanks to the recession, many economists believe that companies have adequate cash on hand to make investments, but that they are hesitating to buy new equipment because they fear higher taxes or a stumbling economy in the first half of next year.

Faucher of economy.com think the accelerated capital spending will help the economy marginally. He notes that business spending has already been rising: it's up 16% since it hit a low in the first quarter of 2009.

"It does provide more of an incentive for businesses to invest," Faucher says. "But I don't think any of these individual pieces is the answer, I think its gong to be a combination of factors designed to push spending."

The Looming Election

Both Faucher and Makin believe the Obama proposals were essentially political motivated in nature, trying to shore up support for the Democrats who are trailing in the polls. "[Congress] couldn't get it done before the recess and my general thought is it's going to be harder afterward because the Republicans are smelling victory and don't want to give Obama any legislative victories between now and November 2," Makin says.

White House aides told The Washington Post that Obama had ruled out repealing or lowering the payroll tax for a sustained period of time because it would cost too much money. Sen. John McCain was highly critical of Obama's proposals, saying that "the point is that the Obama Keynesian on steroids has not worked. The economic policies have failed," McCain said.

McCain said that instead the government should be looking at extending the Bush tax cuts, which expire at the end of the year. Obama has proposed extending the cuts for everyone making less than $250,000.
 

·
Registered
Joined
·
1,858 Posts
Will GOP Leader John Boehner Tax Cuts for the Rich Boost the Economy? ;)
 

·
Registered
Joined
·
12,410 Posts
I don't see how putting $50 Billion into the hands of 'Big Labor' exclusively to fix infrastructure is going to help. Why? The first stimulus which had $90 Billion for 'shovel-ready' projects to fix infrastructure worked like a lead balloon. There's also a portion of the original stimulus which hasn't been spent yet.

Why can't they move some of that money to projects that everybody can participate in, so umm, the wealth gets spread around? :laughing:

This is nothing more than Obama losing grip on his power in November and him trying one last 'Hail Mary' to garner support for the Dems and give a sizeable kickback to his supporters... 'Big Labor'.

As far as the tax cuts, his justification to George Stephanopolous was, "there's a whole buncha better ways to spend the money". :laughing:

Somehow the guy in charge of the United States speaking about our economy in those terms doesn't give me a 'warm and fuzzy' feeling about his understanding of the problem. :crazy:
 

·
Registered
Joined
·
1,858 Posts
I don't see how putting $50 Billion into the hands of 'Big Labor' exclusively to fix infrastructure is going to help.
So put it in Big Business ... ? :crazy:
 

·
Registered
Joined
·
12,410 Posts
So put it in Big Business ... ? :crazy:
no... where in my post did I say or suggest it be put in big business?

I'm going out on a limb here and suggesting you're assuming again... :laughing:
 

·
Registered
Joined
·
1,858 Posts
no... where in my post did I say or suggest it be put in big business?

I'm going out on a limb here and suggesting you're assuming again... :laughing:
Well … there are only a couple segments that can hire - Government, Big Business and Small Business.

We already know the GOP doesn’t ‘what to fund Obama’s plans for Government and Small Business … so that leaves what?

;)
 

·
Registered
Joined
·
12,410 Posts
Well … there are only a couple segments that can hire - Government, Big Business and Small Business.

We already know the GOP doesn’t ‘what to fund Obama’s plans for Government and Small Business … so that leaves what?

;)
Ok, that's where you are wrong. Here's why. GOP has been doing everything it can to protect small business by vocalizing the only way to get the economy going agin is to give small business tax breaks and to cut taxes across the board.

When OBama came into office he claimed he was going to take on Wall St. and fix Main Street, remember? Well then, why has Wall street gotten all the gravy and Main Street is still sucking wind?

'Big Labor' is nothing more than organized crime. The only people getting any benefit from big labor are the union leaders. Big labor only comprises 12% of the work force. How is giving big labor going to fix the economy, when they've been given $90 billion already and that has been squandered? The list of projects that were shovel ready infrastructure is laughable! Tunnels for turtles, studies of the behavioral effects of cocain on monkeys, repaving Murtha's private airports taxiways.

Instead of taking the money from the people and spending it on a team of bureaucrats' idea of how my money should be spent on my business, which they have no effing idea of in the 1st place, why don't they let me keep it and spend it how I see best to reinvest in it with a tax break.

It's the liberals mantra that the government exists to make our lives better. If that were true and they actually did it, I would say, ok, here's some change to make it happen, except they are so good at completely ****ing it up, and everyones lives in the process.

Why? Because people are individuals, NOT a statistic. To claim that can fix individual problem in a statistical manner is horseshit. Sounds good on paper, but the proof is all around you.

One other point.
If all the inner cities are run by liberals, democrats, and thier agenda, and have been doing so since those slums have become slums, why are they still slums if the dems plans are plans that can bring about sound economic policy that will benefit us all? Remember, in some of these areas, the dems and liberals have been in control for over 80 years...
 

·
Banned
Joined
·
31,366 Posts
One other point.
If all the inner cities are run by liberals, democrats, and thier agenda, and have been doing so since those slums have become slums, why are they still slums if the dems plans are plans that can bring about sound economic policy that will benefit us all? Remember, in some of these areas, the dems and liberals have been in control for over 80 years...
Actually, this is the model they have for all of us... :laughing:

Remember, compared to world averages, our poor are "rich"..
 

·
Registered
Joined
·
105 Posts
I know alot of women that are unemployeed and alot of business men and they dont want to go repair roads. I own a small business and we use the tax credits to help grow.. stay up todate. It REALLY helps us. I have 45 employees and I am sorry to say but we make parts for BIG business and when they slow down that means we slow down. I think tax cuts work and lets watch even more companys go to mexico cause of the way they are treated. If you dont want big companys here just keep raising there taxes and making them pay this healthcare crap. One example is we had skil power tools and they moved to china/ mexico and found someone else to do there stuff down there and ANOTHER huge problem is its easyer to sneak across the border than to get stuff through customs.. your boxes get lost or they put a 20 day hold on them. There needs to be alot more done in this country then ROAD repair.

Here is a good example. Lets say a car company wants to come build a plant in one of 3 states. There going to hire 6000 people mabey more.
State one says big business should be taxed more...
State two says no tax breaks same as all the others in this state...
State three say we have people and need jobs bad and will offer you a tax break for the first 5 years and help you get started...
Where do you think they will go?
 

·
Registered
Joined
·
5,206 Posts
Well … there are only a couple segments that can hire - Government, Big Business and Small Business.

We already know the GOP doesn’t ‘what to fund Obama’s plans for Government and Small Business … so that leaves what?

;)
I don't understand why Barry or Pelosi haven't suggested just give the $50B to the homeless and let them buy their first house. that would fix everything:laughing: When the homeless can longer afford the Mcdonalds $1 meal (it now cost $1.50 in LA) there is a real crisis and we all know how Barry doesn't want to waste one of those:crazy:
 

·
Registered
Joined
·
1,858 Posts
I don't understand why Barry or Pelosi haven't suggested just give the $50B to the homeless and let them buy their first house. that would fix everything:laughing: When the homeless can longer afford the Mcdonalds $1 meal (it now cost $1.50 in LA) there is a real crisis and we all know how Barry doesn't want to waste one of those:crazy:
EDIT

Homeless People don’t cause Economic Crashes ... never did.

And your President name isn’t Barry, anymore that the previous President name was Stupid.
Think about it, if you want respect returned, try giving a little.
 

·
Registered
Joined
·
19,914 Posts
Discussion Starter #15
Respect is earned, not given...

Michigan State Housing Development Agency
Homeless Facilities Grants
http://www.michigan.gov/mshda/0,1607,7-141--34606--,00.html
Homeless Facilities Grants are available to Michigan 501(c)(3) nonprofit agencies and local units of government that serve persons experiencing homelessness through a shelter or transitional housing facility. Homeless Facilities Grant resources are intended for the rehabilitation of a facility to house persons experiencing homelessness. MSHDA does NOT accept applications for the acquisition or new construction of shelters or for major rehabilitation and/or additions to shelters. If, however, you are currently operating a shelter and want to sell/relocate to a structure in better condition, contact your Homeless Assistance Specialist. The maximum grant amount is $50,000 with dollar-for-dollar leveraging of project-specific costs required.
(Last checked 06/17/10)
A part was played... in the crash.
 

·
Registered
Joined
·
12,410 Posts
Actually, this is the model they have for all of us... :laughing:

Remember, compared to world averages, our poor are "rich"..
That was going to be my next point, if he dared to answer this question.

The next point being, Since the democrats and liberals have been in control since 2006, why are we still on a downward spiral? Coincidence? :thumbsup:
 
1 - 16 of 16 Posts
Top