How the economic stimulus plan affects me?

     Economic or "fiscal" stimulus stands in contrast to monetary stimulus, a process through which the U.S. Federal Reserve Board adjusts interest rates to encourage or discourage lending. By 2009, the Fed had lowered rates to near zero. Because it can't lower rates below zero (which would amount to lenders paying people to take a loan), the Fed had few remaining policy options. Economic stimulus is another means by which a government can seek to boost its economy, either in the short term, by encouraging consumers or companies to consume goods, or in the longer term, by encouraging the growth of businesses and the creation of jobs through investments in infrastructure and research.
There are many different forms of potential economic stimulus and they work in different ways. Tax cuts for individuals generally encourage short-term spending. Tax cuts for companies encourage both spending and investment. Expenditures on public works create contracts for firms and provide short- to medium-term employment opportunities. Investments in research and development take a longer-term approach under the theory that businesses will thrive in the future (and thus provide jobs) if they have the money to make intelligent investments in their operations now.
Finally, some forms of economic stimulus seek to make investments that will pay off in the long run by making consumption cheaper for everybody. An example is investing in the U.S. energy grid. Theoretically, a one-time outlay could make energy costs for both individuals and businesses less expensive for decades to come. Similar arguments are made about health care spending. Critics say an outdated and illogical health care system presents significant costs for U.S. businesses that could be eased through front-end investments. Obama has called attention to both energy and health care as sectors in which infrastructure investments could help make U.S. firms more competitive internationally. Other countries, including China, have similarly focused stimulus spending on infrastructure development.







Economic Stimulus Package- distribution of money

• Doubling of renewable energy production
• Renovation of public buildings to make them more energy efficient
• Rebuilding of American infrastructure (roads, bridges, and schools)
• Updating and computerizing our healthcare system
• Modernizing classrooms, labs, and libraries
• Providing “direct tax relief” to 95% of American workers
• A $2,500 college tuition tax credit.

Why not simply pay for the tuition entirely based on individual merits? Let’s reward those low-income students who truly want to earn their way to college with full scholarships, with the pre-agreed condition that they will work to benefit their communities for at least 2 years after graduating.


Expand Health Care
• $24 billion to subsidize COBRA benefits for laid off workers.
• $87 billion to help states with Medicaid.
• $10 billion to National Institute for Health
• $17 billion to modernize health information technology systems.


Improve Education

• $54 billion to school districts and states.
• $21 billion for school modernization.
• $17 billion to boost Pell Grants.
• $13 billion for Head Start.
• $12 billlion for special ed programs.