I know very little about economics. I should knock wood as I say this, but the economic crisis hasn't much affected me other than scaring the shit out of me on behalf of my country. I don't own a house, renting instead a house owned or nearly owned by someone else. I paid off my car this month. (Yay me!) I have no children to send to college. I have no husband with ex-wives I have to split my income with. I have no ex-husbands who need help. I have no hot deadbeat boyfriends with bad habits or artistic dreams.
I'm in more debt than I would like and have more credit cards than is probably wise, but I'm not tipping on the edge of the max. I take that responsibility seriously so I usually pay an amount over the minimum payment and I pay early. Though I worry about layoffs, I have a job at which I excel and am vain enough to think that if my company felt that I was no longer necessary, they would suffer with the loss of my efforts. I'm fairly secure in thinking I could get another one quickly...perhaps not at my current pay but working as a litigation secretary in a litigious town is sort of like working in the tampon industry or at a mortuary. No matter how hard times get, people are always going to need my services.
I didn't start saving for my retirement until I was well into my 40s so I contribute faithfully to my retirement. I don't want to end up in an old folks home drooling alone in a wheelchair by the nurses station. My retirement did take a big hit when the market fell, but I have enough working years left that I can only hope things will get rosier before I'm too old to work. I will probably be working into my 70s, God willing, the creek don't rise and I have my wits about me. (Nothing worse than an old incompetent legal secretary.) So retirement and visiting my mother fairly regularly are my big expenses.
I am living paycheck to paycheck but without the car note, I hope to change that slowly but surely.
So, if circumstances in my life maintain the status quo for a while, I should be okay. If they don't, however (and I can damn near guarantee that they won't because nothing in life does), I'm going join the half million people each month who are in a world of hurt.
There is before the Senate the American Recovery and Reinvestment Act. This is the stimulus it is offering to the economy:
Tax cuts ($275 billion):
Payroll tax cuts ($500 for each individual, $1000 for couples)
$2500 tax credit for higher education
$7500 non-repayable tax credit for first-time home buyers (for houses bought until July 1)
Education investments ($141.6 billion):
$79 billion in state fiscal relief to prevent cutbacks to key services, including $39 billion to local school districts and public colleges and universities distributed through existing state and federal formulas, $15 billion to states as bonus grants as a reward for meeting key performance measures, and $25 billion to states for other high priority needs such as public safety and other critical services, which may include education
$41 billion to local school districts through Title I ($13 billion), IDEA ($13 billion), a new School Modernization and Repair Program ($14 billion), and the Education Technology program ($1 billion)
$15.6 billion to increase the Pell Grant by $500
$6 billion for higher education modernization
Health care investments ($112.1 billion):
$87 billion for a temporary increase in the Medicaid matching rate for the states
$20 billion for health information technology, including electronic medical records to prevent medical mistakes, provide better care to patients and introduce cost-saving efficiencies
$4.1 billion to provide for preventative care and to evaluate the most effective healthcare treatments.
Welfare/unemployment ($102 billion):
$43 billion for unemployment benefits and job training
$39 billion for short-term Medicaid insurance and Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) subsidy
$20 billion for the Food Stamp Program
Infrastructure investments ($90 billion):
$31 billion to modernize federal and other public infrastructure with investments that lead to long-term energy cost savings
$30 billion for highway construction
$19 billion for clean water, flood control, and environmental restoration investments
$10 billion for transit and rail to reduce traffic congestion and gas consumption
Energy investments ($58 billion):
$32 billion funding for an electric smart grid
$20 billion for renewable energy tax cuts
$6 billion for weatherizing modest-income homes
Payroll tax cuts ($500 for each individual, $1000 for couples)
$2500 tax credit for higher education
$7500 non-repayable tax credit for first-time home buyers (for houses bought until July 1)
Education investments ($141.6 billion):
$79 billion in state fiscal relief to prevent cutbacks to key services, including $39 billion to local school districts and public colleges and universities distributed through existing state and federal formulas, $15 billion to states as bonus grants as a reward for meeting key performance measures, and $25 billion to states for other high priority needs such as public safety and other critical services, which may include education
$41 billion to local school districts through Title I ($13 billion), IDEA ($13 billion), a new School Modernization and Repair Program ($14 billion), and the Education Technology program ($1 billion)
$15.6 billion to increase the Pell Grant by $500
$6 billion for higher education modernization
Health care investments ($112.1 billion):
$87 billion for a temporary increase in the Medicaid matching rate for the states
$20 billion for health information technology, including electronic medical records to prevent medical mistakes, provide better care to patients and introduce cost-saving efficiencies
$4.1 billion to provide for preventative care and to evaluate the most effective healthcare treatments.
Welfare/unemployment ($102 billion):
$43 billion for unemployment benefits and job training
$39 billion for short-term Medicaid insurance and Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) subsidy
$20 billion for the Food Stamp Program
Infrastructure investments ($90 billion):
$31 billion to modernize federal and other public infrastructure with investments that lead to long-term energy cost savings
$30 billion for highway construction
$19 billion for clean water, flood control, and environmental restoration investments
$10 billion for transit and rail to reduce traffic congestion and gas consumption
Energy investments ($58 billion):
$32 billion funding for an electric smart grid
$20 billion for renewable energy tax cuts
$6 billion for weatherizing modest-income homes
There must be sub-categories not published on Wikipedia -- i.e. how does the $6 billion get allocated for weatherizing -- the Republicans have their panties in a wad about because to me it looks like Ol' Glory unfurled. Oh, yeah. Spending is evil. Two'll get you five they want Food Stamps out out out.
Which brings me to Pres. Obama's remarks at the House Democrats’ retreat in Williamsburg, Virginia. Go here to C-Span for his remarks in their entirety. Upshot? It's there at minute 14:30. Spending IS stimulus...that's the whole point.
UPDATE: The video of that particular moment. H/t Smooth Like Remy.
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