by Logan Scisco
Over the last week, the news concerning the state of the U.S. economy continues to be troubling. Unemployment rates stand at the highest they have been in twenty-five years, banks continue to suffer problems despite the federal government’s willingness to give them aid, there is still doubt and uncertainty over the fate of America’s automakers, the federal deficit is expected to climb, and the gross domestic product (GDP) of the U.S. shrinking 3.8 percent in the fourth quarter, the biggest such contraction in GDP since 1982.
Faced with these massive economic problems, newly elected president Barack Obama has urged Congress to pass a new round of stimulus spending, over $800 billion worth, in attempt to get the economy growing again and avoid a second Great Depression in the United States. This is no surprise considering that the economic meltdown helped to elect Obama as president and if he fails to fix the economy over the next four years his chances of re-election look grim.
For extempers, the ongoing battle over this stimulus package is of utmost importance in examining domestic topics over the next two months. The success of the passage of this stimulus bill will demonstrate how well Obama can cross the aisle and win bipartisan support for his initiatives. This battle is also the first major legislative test of Obama’s presidency and a failure could cost his administration valuable momentum in its first several months in office.
This brief will clarify the components of the recent economic stimulus bill that passed the House of Representatives last week, describe what modifications the U.S. Senate may make to the bill, and the political implications that arise from these decisions.
Over the last week, the news concerning the state of the U.S. economy continues to be troubling. Unemployment rates stand at the highest they have been in twenty-five years, banks continue to suffer problems despite the federal government’s willingness to give them aid, there is still doubt and uncertainty over the fate of America’s automakers, the federal deficit is expected to climb, and the gross domestic product (GDP) of the U.S. shrinking 3.8 percent in the fourth quarter, the biggest such contraction in GDP since 1982.