Government may extend stimulus measures
Filed under: Economy
The September jobs report sent a message to Washington: The recovery, and the $787 billion stimulus package enacted earlier this year, may be swamped by unemployment.
Now there are indications that several key measures of the stimulus package may be bolstered or extended, the The Wall Street Journal reports.
One program would extend unemployment-insurance benefits beyond the end of the year. Another would kill the expiration of the tax credit for first-time home buyers. Perhaps the most important would be a plan to maintain a program that offers tax credits to help defray the often huge costs workers face if they want to purchase the health insurance they had on the job after they've been laid off.
Of course, all of this will cost the taxpayers money, now or in the future. The increases in major benefit programs will cost the government billions of dollars beyond what has already been committed. One way to fund that would be to raise taxes now, which could cripple consumer spending power more than it already is.
The other path is for the Treasury to borrow more money and increase the amount of the national debt. The taxpayer will get to pay that bill in a few years That may help get the government out of its hole but will cause an addition to what are already likely to be higher taxes for a decade or more.
Saving the economy now has a price, which is to potentially weaken it in future.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 22)
10-03-2009 @ 12:45PM
Ken said...
Jax
You are right. charity starts had home. cut all foreign aid to all countries. close our borders to immigrations . Pass laws that if it not made in this country it is not sold in this country. For companies that send work overseas tax what is coming in to this country and charge them a higher rate of income tax for sending work out. watch how fast things change. If our government allows imports tax them the same way other countries products we ship overseas by adding 25 to 30% to the cost . It is funny most of the countries were up and running long before the US was discovered also most of these countries hate the US why give help to someone that hates you.
10-03-2009 @ 10:02AM
Hugh said...
Start the conservation by keeping Air Force One on the ground and the Obama's in the Whitehouse.
Reply
10-03-2009 @ 1:07PM
kitty said...
Excellent thought!!!
10-03-2009 @ 1:51PM
jessie said...
only until 2012
10-03-2009 @ 4:33PM
bailoutsos said...
Now that Chicago should have $4 BILLION that was to be spent on the Olympics, are they going to improve things for residents or are they going to give government officials a bonus for trying? Who is keeping account of the $4 BILLION?
10-04-2009 @ 10:00AM
sunflower47 said...
you are half right. keep air force one on the ground.
10-04-2009 @ 2:30PM
joey said...
Also get rid of the 46 czars and all 20 plus advisors to M.. Obama. And get the mother -in-law out of the White House
10-03-2009 @ 2:16PM
Charles Queen said...
YA right like the last stimulus pakages helped anything.not.Here's a thought.First get the hell out of Afghanastan and cut off all aid to there as we cannot win any war there period.Quit giving out billions in aid to every country that whimpers and whines and start keeping the money here for awhile.Our country's infrastructure is crumbling and falling to pieces.Everything from bridges to roads and highways to buildings,you name it it falling apart.Get rid of all illegals and non immagrants and close down the borders as far as imagration go's for now.Take all this many billions that would be saved and use it to put American people(no foriegn guest workers) and use them to start rebuilding our infrastructure using the many billions to pay them with
Reply
10-03-2009 @ 5:17PM
David said...
You have a couple valid points but some that make no sense. Yes we should quit paying all these millions to other countries for everything for air research to aids and zoology studies. The illegals are that "illegal" but are you going to work for 7 bucks and hour or less for 12 hours a day? NO I did not think so. The war would be won if the Prez would just say yes do it instead of wavering on all his promises he made before elected. (Point against you Bama Lovers) The stimulus has helped millions with money to eat and live (unemployment extensions) So Charles think before you speak
10-04-2009 @ 8:51PM
jeri said...
AMEN!!!!!!!!!!!!!! Charles, you said it like a PRO.
10-04-2009 @ 1:29AM
Doug said...
I agree with your post 100 percent.
10-04-2009 @ 10:36AM
anthony said...
we just got to love ignorant people right??? immigrants is going to bring more tax money to this country if we get them legal if we keep them illegal they are going to screw the system just like they are doing now the border is just a huge money sucking wall....lets make it possible for illegal immigrants to get legal and this big mess about health care,borders,and illegal immigrant crap will get much better.their are millions of illegal immigrants not paying taxes they get legal they will pay taxes thats alot of extra people that will pay taxes thats a start it will help......
10-04-2009 @ 2:41PM
AL said...
An intelligent blog for once. It's way past time we shut off the tap to foreigners, PERIOD. The illegals working here are replaced by those on WELFARE. Refuse any job and they get no benefit. Why is it that those on unemployment get six lonths of benefits, but get on WELFARE and it's a lifetime retirement? Those on Social Security get no raises for the next three years, does that also mean those on WELFARE get cut? Why cut those tht worked and give to PARASITES?
10-03-2009 @ 10:08AM
dajt57 said...
let's focus on bank re regulation and busting up bank monopolies. oil re regulation and busting up the oil company monopolies. both industries have proven by themselves to have a failing business plan.
Reply
10-03-2009 @ 10:20AM
red white & YOU said...
What about the monopolies of ALL the Ins. co's? 400 lobbyists for every member of the house and senate..They make 1 out of every 3 dollars spent on health care...
10-03-2009 @ 2:41PM
Nanci said...
now that makes sense.
10-03-2009 @ 10:25AM
Nell Vaughn said...
I do encourage extension of unemployment benefits as long
as we know the people are searching for employment. I
also believe the discount now being given laid off workers
to assist with the cobra health care coverage is one of the
best programs initiated. Do not have opinion re first
time home buyers but imagine help is justified as long as
they are properly screened for the home loans.
Reply
10-03-2009 @ 10:26AM
JB Sullivan said...
The economic "heart attack" happened under Bush and the "ICU" recover will take place under Obama. This is the way economic life works.
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10-03-2009 @ 11:33AM
Don said...
If you check back you would see that things were going well until the 2006 elections which put the party of the left in power. That is when the economy went in the tank not before.
10-03-2009 @ 12:22PM
Linda said...
The economic problems started long before Bush, you moron. And it was Bush's stimulus package that worked.
Everything that BO has done has only put our country into more debt. Our grandkids will still be paying for it.
You dont fix a deficet by spending more and more. You dont fix it by laying offf workers. You cut from the top not the bottom. If we ran our homes the way BO is running our country we'd all be in jail. And on top of that BO has turned around and is doing many of the things he said was wrong with Bush's administration. BO is a hypocrit and a liar.