How Does Barack Obama Plan to Improve Our Economy?
Nearly two years have passed since Barack Obama's inauguration; now that the masses have come down from the Obama opiate, they are anxiously awaiting this promise of change. So how does Barack Obama plan to improve our economy? Let's look at his major solutions to what he calls the "worst financial crisis" since the Great Depression: reducing the rising numbers of unemployment, creating a new housing solution, and building a new market economy focused on principles of sustainability.
Shortly after taking office, Obama signed the American Recovery and Reinvestment Act, endeavoring to create approximately 3.5 million new jobs while simultaneously providing tax cuts to families earning less than 200,000 dollars. This stimulus act ostensibly bridges the gap between what consumers are spending and what they need to be spending in order to improve the economy. Note: George Bush signed two stimulus Acts at the end of his presidency and we can see how well that worked.
Whether you believe the fault lies with the individuals who signed on to home loans they couldn't afford, or with the lenders who gave credit to these individuals; the reality is that home foreclosures have adversely affected our economy. A total of $12.7 Billion dollars has been allocated (primarily to the Department of Housing and Urban Development (HUD))The new housing program assists families in refinancing their homes at lower mortgage rates, modernizes public housing and assists people in becoming home owners.
The Obama Administration believes if they focus on investments such as Healthcare, Education and Sustainable Energy, they will see a return in the long run. The new Healthcare bill, if passed, will apparently include millions of new people, which will help them to get out of debt . Additionally, the Administration has increased the amount of money students can borrow with Federal Stafford Loans, which will allow students to continue their education and defer payments while attending college. Additionally, Pell Grants were increased from $4,731 to $5,350 per year.
These plans to improve the economy have been largely criticized by Economists who (in short) do not believe that more Government spending is the answer. Surprisingly, the initiatives are not so popular with Obama's constituency either- approval ratings have dropped 30 percent since Obama took office. According to a study conducted by the Wall Street Journal, most Americans don't believe that Obama will even reduce the current deficit by half by the end of his term.