The stimulus’ effect
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Americans are using personal loans as they wait for Obama’s stimulus to affect their everyday lives. In an effort to prove the economy is coming to an upswing, President Obama vowed to direct federal money into public works programs this summer. The intent is to bring more than 600,000 jobs to the economy, either creating new ones or retaining old ones.
Over the past few months the Obama administration has been hit with criticisms that the stimulus is not worth its record-high price. Partially the negative review is due to the continuing growth in unemployment and the weakened housing market. Despite the President’s announcement of the summer stimulus program, critics are reminding people that the programs were already planned months ago. The goal of 600,000 was set in motion also. Obama’s announcement of old news is not sitting well with many Americans who are questioning the effectiveness of the initial $787 billion stimulus. The summer stimulus plan will be funded by tax-payer dollars, an added concern to many struggling consumers.
New plans
President Obama stated, “We’ve done more than ever, faster than ever, more responsibly than ever, to get the gears of the economy moving again.” He also stated that based on the work already achieved by federal agencies during his presidency, the economy is “in a position to really accelerate.” The President also confirmed that the unemployment rate is leveling off but stated that the additional 345,000 job losses were still too many. He cited that “Our ultimate goal is making sure that the average family out there, mom working, dad working—that they are able to pay their bills, feel some job security, make their mortgage payments.”
Obama’s job stimulus plan for the summer includes a wide variety of public works jobs from parks and wastewater projects, to the building of military facilities, airports and veterans’ clinics. This summer stimulus is nothing new, as in the past the government has always used summer as a peak time for revamping job planning projects.
The critics
Many critics remain staunch in their reviews, however maintaining that the government programs will not do much to aid in economic recovery. They believe that the enormity of the spending plan and its long-term cost to taxpayers, have created a lull in consumer support. A recent AP-GfK poll found that 41% of those surveyed disapproved of Obama’s deficit plans. It further showed that many people are highly incensed by the overwhelming amount of the deficit. One economist stated, “It would benefit consumers more if lenders were put back on track…making personal loans, mortgage loans and credit once again attainable That should be the priority.”
Obama answers
In an effort to quell concerns, Obama readily addressed the critics’ thoughts adding, “I know that there are some who, despite all evidence to the contrary, still don’t believe in the necessity and promise of this recover…and I would suggest to them that they talk to the companies who, because of this plan, scrapped the idea of laying off employees and in fact decided to hire employees.” Tell that to the Americans who received that unexpected call saying, “Come back to work.”
Despite the programs available, consumers will need to find new ways of managing the recession as it comes to an end. Many are looking to personal loans, installment loans and short term loans as a means of debt relief. With the changes as posed by the Obama administration, everyone has yet to see how things will change in the future.
