http://biz.yahoo.com/ap/080117/economy_stimulus.html
The United States is in difficulty with their falling economy and the government must do something to patch it up. George Bush plans on giving tax rebates of $300-$800 per person whom have an income of under $85,000. He also plans on giving tax breaks to many companies that would benefit the economy, which are kept anonymous. America is in a slump and Bush doesn’t want to go into a recession. The last recession that the United States has been in was in 2001. This is a huge amount of money, which is totalled to be around $100 billion dollars.
George Bush has decided to interfere with the free market economy to redistribute income distribution and to boost economic activity. The economic recession is natural in the business cycle, but Bush is trying to reduce its amplitude by bringing the economy up before it gets any lower. The tax rebate is to give money from the wealthy to the less wealthy. The Federal Reserve Chairman believes that it is beneficial for the economy to give money to the people who would spend it quickly. The companies receiving tax breaks are for businesses investing in new equipment, increases in food stamps, and higher unemployment benefits so that the economy can benefit from their business.
I’m glad that the government is stepping in and can recognize when there is a problem with the economy. I agree with all of Bush’s decisions and he backs them up with strong, well thought out points. Many people are supporting him and he has been planning this with many congressional leaders. I think that $100 billion is quite a lot, but if it can cause competition and reverse the recession, it is definitely worth it.