Economy: Pelosi Announces Ideas For Stimulus Package
It’s obvious that more economic relief is needed to help the middle class. Speaker Nancy Pelosi, announced her proposed stimulus package earlier today…
House Democrats will propose a new stimulus package to “rebuild America” and “help the middle class,” Speaker Nancy Pelosi, a California Democrat, announced Monday.
The package will have some of the same features as one passed earlier by the House but rejected by the Senate, she said, including “aid to the states” on healthcare, food stamps and unemployment.
From The Washington Post…
Determined to keep the campaign spotlight on the economy, Sen. Barack Obama has added $60 billion in new tax breaks and other benefits to his economic stimulus plan, and will urge Congress to act quickly after the election to provide middle-class relief.
While his opponent, Sen. John McCain, has reportedly considered but not yet spelled out additional economic recovery steps, the Democratic nominee is expected to outline several new proposals at a speech here this afternoon. They include:
- A temporary tax credit for firms that create jobs in the U.S.
- Penalty-free 401(k) and IRA withdrawals through 2009, to allow struggling families to withdraw up to 15 percent of their savings, up to $10,000.
- A 90-day foreclosure moratorium for homeowners making “good-faith efforts” to keep up with their mortgage payments.
- Creating a new entity to lend to state and local governments, allowing for an effort similar to the liquidity assistance that the Federal Reserve recently extended to commercial banks.
- The temporary elimination of taxes on unemployment insurance benefits.
Obama also will raise the prospect of government aid to the automobile industry and more aggressive government action to help banks and free up consumer credit. He has already outlined benefits such as a middle-class tax break — delivered immediately in the form of a check — and small-business incentives that total about $115 billion over two years.
The Toledo speech coincides with a meeting of House Democratic leaders this morning to discuss action on a stimulus bill when the chamber reconvenes, as planned, after the election.
Also See:
What Is a Fiscal Conservative and Who Are They?
On the brighter side of the economy – Dow Takes A Giant Leap…
Last week’s gloom turned into euphoria as investors sent the Dow Jones Industrial Average up 11%, the biggest one-day gain since 1933. It was the fifth-largest percentage gain ever, and it came immediately after an 18% weekly decline, the worst such drop in the Dow’s 112-year history.
The head-snapping shift in sentiment, spurred by global plans for governments to rescue banks through direct capital injections, left investors debating whether this marked the end of the past year’s frightening bear market, or just a temporary respite.
So. What do you think? Do we need another economic stimulus plan? Is this plan going to be good enough? Let me know what you think in comments.
