President Obama put the economic recovery and reinvestment plan before the house about two weeks back.
The plan envisages an outlay of about $ 819 B out of which one-third is tax cuts and two thirds is spending. The plan expects to create / save 3 to 4 million jobs. The proposed spending of $ 550B mainly consists of:
$ 142B - Education
$ 111B - Health care
$ 90B - Infrastructure
$ 72B - for aid & other benefits
$ 54B - Energy
$ 16B - Science and technology
$ 13B - Housing
Obama has always advocated bi-partisanship and wants to bring in change involving everybody.
Right through his campaign he maintained that Washington needs to change it's approach. So when he put the bill before the house he hoped to get the support of everyone -- across party lines. He addressed the house and pleaded for bi-partisanship and full support.
HE GOT A RUDE SHOCK AND HIS FIRST BIG LESSON IN AMERICAN POLITICS AS A PRESIDENT.
The Republicans wanted a lot of changes in the proposal. They want MORE OF TAX CUTS AND LESS OF SPENDING. They strongly feel that tax cuts are the only way for economic recovery. But , Obama pointed out that there have been so many tax cuts last few years and look where it has taken the economy. He told them "...whack me over my head, but no more tax cuts for big business.." The Republicans want less spending because they feel that this spending will not create a lot of jobs.
Let us take just one example of the automobile industry. Obama has been saying all along that the auto industry needs to change and become energy efficient and eco-friendly. The Republicans seem to say that look, things are bad, this is not the time for change, let us pump in more money, so that more cars are sold and more are made (saving jobs). Obama says that such QUICK FIXES wont work. He says that THIS IS THE BEST CHANCE TO MAKE AUTO SECTOR REFORM , WHEN GOVERNMENT IS GOING TO FUND IT.
Most of us who have spent time in the corporate world know what happens there---
WHEN YOU ARE DOING WELL, PEOPLE SAY, WHERE IS THE NEED TO CHANGE?
WHEN THINGS ARE BAD, PEOPLE SAY, TIMES ARE BAD AND WE CAN NOT AFFORD CHANGES.
SO, THE QUESTION IS WHEN DO YOU CHANGE????
If you look at the funds earmarked under various heads , you see that education , healthcare and infrastructure are topping the list. What Obama's team is trying to do is invest for a better tomorrow while creating / protecting jobs in those areas today. He is very clear and focussed on what he wants to achieve.
Most of the Republicans are worried about Obama. They were dazzled by his win ,and, politically, they do not want him to have too much of success. But, they are also worried about being labeled as obstructive. So they are trying to compromise and get the best possible tax cuts in the deal and drop some developmental spending that will not result in immediate job creation.
( ....... to be continued )
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Yes, Obama is inspirational. I would definitely like the stimulus to be done. But lets not get to the point where we make 1/2 the population wrong because we want to side Obama and we like him. I will put it this way. Only when both sides come to a median solution there is a chance that anything done will be successful to lift US out of this big ditch.
ReplyDeleteI definitely like that guy (Current President of US) and agree that he inherited a mess. I also agree that his heart is in the right place (it appears so). I can just say this, with some modifications the Stimulus bill will pass and it has to pass. There is no way anyone can stop that despite all the differences. Its just the structure that will change and I tend to believe that such scrutiny can only be for the good of everyone.