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A look ahead - 1 year after the A.R.R.A. aka. stimulus bill

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Fgiriun Donating Member (57 posts) Send PM | Profile | Ignore Fri Feb-06-09 04:20 PM
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A look ahead - 1 year after the A.R.R.A. aka. stimulus bill
Its nearly conceivable that the ARRA(stimulus bill) will pass in the coming days but what then?
The overall success of this legislation depends on the results of the 2010 elections, specially the senate elections. The recession might be over by the 3rd fiscal quarter of next year and therefore this stimulus is designed in such a way as to sparse spending over the coming years. Even after the recession the government must continue "administering the medicine" to the economy with gradually lessening dosages of stimulus.
If the stimulus is reduced or completely destroyed by legislature in a new congress in 2011 then all the progress that has been made will be for naught and we would be heading into a new recession. That is similar to what happened in 1937 when Roosevelt, due to lack of support, cut back on spending which inevitably caused the nation to fall into another recession after significant recovery.
In my opinion this bill has all the elements necessary for the recovery process; although I can do without the corporate/elite tax cuts.
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