Obama’s Plan: Stimulus or Waste

There has been so much controversy in the United States ever since President Barack Obama announced the $825 billion stimulus package. President Obama argues that the stimulus plan is needed immediately to reduce any further harm caused by the recession and also to revive the U.S. economy. On the other hand, the opponents of the stimulus plan are worried about whether or not the plan will work. They are also worried that the huge stimulus plan will increase government spending a great deal and it would further lead the United States into a greater amount of deficit. What these opponents – mostly republicans – seem to forget is that Obama is not dumb. He realizes the risk he is taking but is willing to take it nonetheless because it makes sense. The opponents believe that the economy can be revived through additional tax cuts which in my opinion only reduce government revenue in the long-term. These opponents fail to realize is that consumer spending is the backbone of the American economy and if there is no spending, there will be no lending, no job creation, no borrowing…the list goes on and on. With the U.S. Economy now suffering its sharpest decline in 26 years and almost 600,000 jobs lost in January alone, there is a need to act FAST and a need to act NOW!!!