Download Obama`s Economic Stimulus Package in Detail

Obama’s Economic Stimulus Package in Detail
For some context, the annual budget of the U.S. is approximately $3.7 trillion and the national debt is currently $17
trillion.
The Economic Stimulus Package was approved by Congress in February, 2009 to spend $787 billion over 10 years.
The plan was to jumpstart economic growth, and save between 900,000 - 2.3 million jobs.
Here is the economic stimulus package in detail. There are seven components:
Immediate Relief for Families
This will cost $260 billion over 10 years.
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Cut taxes by $400 for individuals and $800 for families.
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A payment of $250 to recipients of Social Security and veterans pensions.
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Expand the Earned-Income Tax Credit (a tax credit for low to moderate income working individuals and
couples) to families with three kids
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A $2,500 college tuition tax credit.
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$8,000 tax credit for first-time homebuyers in 2009.
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Deduction of sales tax on new car purchases.
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Extension of unemployment benefits and suspension of taxes on those benefits through 2009.
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Modernize Federal Infrastructure
$46 billion for transportation and mass transit projects.
$31 billion to modernize federal buildings.
$6 billion in water projects.
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Increase Alternative Energy Production
$17 billion in renewable energy tax cuts.
$5 billion to weatherize homes.
Expand Health Care
$24 billion to subsidize COBRA benefits for laid off workers (this helps people who have lost their jobs
afford paying for health care coverage while they look for a new job)
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$87 billion to help states provide Medicaid benefits (health care for low income families)
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$10 billion to National Institute for Health
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$17 billion to modernize health information technology systems.
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Improve Education
$54 billion to school districts and states.
$21 billion for school modernization.
$17 billion to boost Pell Grants (grants to help students with financial need go to college)
$13 billion for Head Start (program to address systemic poverty through education, health, nutrition services
to low income families)
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$12 billion for special education programs.
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Invest in Science Research and Technology
$10 billion for science facilities.
$4 billion to increase broadband infrastructure.
$4 billion for physics and science research.
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Help Small Businesses
$54 billion to help small businesses through a variety of tax incentives and write-offs.
On the back of this paper, identify what you think are the two MOST effective and the
two LEAST effective line items from the stimulus package as far as getting the circular
flow moving. Briefly explain your choices.