Another Week, Another Stimulus Package

by: TradingHelpDesk

At least the latest ‘throw money at the problem’ plan isn’t propping up failed banks. The Democrat sponsored $155 billion deal is designed to fund construction ready projects and avoid layoffs in the public sector, saving teaching and police jobs in particular. Not a single Republican voted for the measure with cynics suggesting the center-right party were hoping for 10% plus unemployment during the November 2010 congressional elections – to be marketed as concrete proof of a failing Obama administration. The official Republican line voiced concern the package would just drive the US deeper into debt.

Of the $155bn, $75bn is coming from left-over money from the bank bailout fund with the remaining $80bn needing Senate approval early next year.

$48.3bn is to be spent on infrastructure projects, highway construction would receive $27.5bn, with $8.4bn targeted at bus and other transport projects. A further $24.2bn is to be spent on schools and the police whilst much of the remaining budget would contribute towards federal healthcare and other benefit programs.