It’s been just a little over a
month since inauguration day
and President Barack Obama
has been keeping busy designing
a stimulus package, going
over the national budget,
and preparing legislation for
Congress.
Mr. Obama recently
addressed the people of the
United States in a national
address that laid out the
framework for everything that
he wishes to push through
Congress and explained details
on how to rebuild America’s
economy.
“We will rebuild, we will
recover, and the United States
of America will emerge stronger
than before,” he said to a
joint session of Congress. He
later called upon the American
people to “take responsibility
for our future once more.”
However, the $787 billion
economic stimulus package
that the president recently
signed into law fails to take into
account the long-lasting effects
it will have on our country and
future generations.
A recent article in the Miami
Herald questioned whether
the stimulus package and the
numerous programs which
the Democratic controlled
Congress wishes to orchestrate
would provide a short term
boost to the economy.
Naturally, the stimulus package
will increase the federal
deficit of 2009, pushing it up to
a record estimated $1.4 trillion.
This new piece of legislation
puts President Obama’s
motives in question as the new
bill contradicts the president’s
plan to cut the federal deficit in
half within the next four years.
This notion would be a lot of
work in itself even without adding
more to the already hefty
federal deficit.
The package
could help
put money in
the pockets of
the American
people now,
but may also
just add to the
amount of taxes
that the next
generation, our
generation, will
be subjected to
in order to tackle
the increasing
national deficit.
It doesn’t
appear as though the government
is taking responsibility
for the future of our country if
they are leaving such a large
deficit for the responsibility of
young America to deal with in
the future.
It also seems ironic that the
American people, who blatantly
proclaimed their criticism
and disapproval of what
President Bush’s bailout of the
financial institutions and automotive
industry on the grounds
of an increase in the national
debt, seem less disposed to verbalize
the negative impact the
stimulus package will have on
the federal deficit.
So, does America really
need a stimulus package to set
the economy back on the right
track? Well, in my opinion, not
really.
In the 1970s at the end of the
Carter Administration, America
was experiencing
yet another
economic recession,
one that
was even worse
than today’s.
In 1980, the
rate of inflation
hit 13.5 percent
and by the end
of 1982, the
national unemployment
rate
reached a record
high of 10.8 percent.
Today, the
national unemployment
rate has stayed away
from double-digit numbers at
7.6 percent with inflation at just
about 3 percent.
To combat the economic
recession of the time, instead
of creating a stimulus plan,
President Reagan enacted the
Economic Tax Recovery Act
which called for personal and
corporate tax cuts, reductions
in government spending, and
reduced bureaucracy.
Reagan’s Recovery Act,
along with the work of the
Federal Reserve Board to combat
inflation by raising interest
rates, helped the economy
begin to right itself. Then, by
the mid 1980s, America experienced
one of the largest durations
of peacetime economic
prosperity in American history.
Clearly other avenues can be
taken to set the economy back
on the right path, rather than
enacting a stimulus package
that will result in a significant
increase in the federal deficit
and inevitable increases in
taxes in the future to try to pay
off the deficit.