Risk Rap

Rapping About a World at Risk

Can You Dig It?

Shovel Ready

Shovel Ready

In the first great act of his Presidency, Barack Obama signed the economic recovery package into law today at a jubilant signing ceremony in Denver Colorado. President Obama’s selection of Denver as the location for the signing ceremony was a symbolic gesture that places the focus of the recovery act outside of the political swamp of Washington DC. President Obama is committed to depoliticalizing the recovery initiatives as much as possible. The CEO of Namaste, a small business dedicated to developing technologies to support renewable energy initiatives spoke on how this bill will stimulate small business growth in his introduction of President Obama.

The recovery bill is constructed of a number of tranches designed to stabilize the economy by stimulating growth and creating jobs in much needed infrastructure development projects. Specifically the package includes tax cuts, aid to state governments, funding of emergency social services programs, a project to digitize medical records, alternative energy program funding and a large infrastructure spending program. The aid to state governments and the funding of social service programs like food stamps and unemployment insurance will keep people employed, fed and housed. This will also infuse money and direct spending to help the ailing retail sector of the economy.

The package totals $780bn is a significant infusion of money into the moribund economy but some fear it is not enough. Paul Krugman believes that the stimulus package is not large enough. The Nobel Laureate economist estimates that the economic downturn will shave almost $2tr from the GDP over the next two years. Mr. Krugman believes that a recovery plan needs to approximate that scale to be an effective stimulus package.

In an effort to provide taxpayers with a degree of transparency for the stimulus program, the Administration has created a website Recovery.Gov where all citizens and concerned taxpayers can monitor the progress of the program.

The stimulus package will immediately provide aid to state budgets that are reeling in deficits. States like California have declared a state of emergency to deal with the revenue shortfalls and gaping budget deficits. Without the cash infusion, state governments will be forced to layoff thousands of workers and shut down vital government services that the middle class, working poor and marginalized groups depend on to subsist. The program will also immediately fund shovel ready infrastructure projects are already in process and potentially could have shut down without the passage of the stimulus package.

We applaud President Obama’s initiative and leadership to get this bill passed. We continue to support our President’s efforts to bind the political and economic wounds of our country.

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February 19, 2009 Posted by | goverment, recession, Uncategorized | , , , , , , | Leave a comment