Diversifying Ruined

The video might takes some time to load but its worth the wait. If you are bored just his replies (which I don't think you will), jump straight away to the last 5min of the video. :)

I.O.U.S.A. boldly examines the rapidly growing national debt and its consequences for the United States and its citizens. Burdened with an ever-expanding government and military, increased international competition, overextended entitlement programs, and debts to foreign countries that are becoming impossible to honor, America must mend its spendthrift ways or face an economic disaster of epic proportions.

I.O.U.S.A. – the 30-Minute Version from IOUSA the Movie on Vimeo

Since last Friday, you have been seeing a lot of headlines about the gigantic $787 billion economics stimulus package after it has been approved by the Congress, finally.

What does that package actually do and what impact will it creates? A site which I frequently visit has a good, nice, simple and clear explanation of the package.

Credits to About.com.

The plan has seven components:

Immediate Relief for Families

This will cost $260 billion over 10 years.

• Cut taxes by $400 for individuals and $800 for families.
• A payment of $250 to recipients of Social Security, veterans pension and SSI benefits.
• $70 billion to continue the AMT tax shelter.
• Greater access to child tax credit for working poor and expand earned-income tax credit to families with three children.
• A $2,500 college tuition tax credit.
• $8,000 tax credit for first-time homebuyers in 2009.
• Car buyers could deduct the interest on new car loans.
• Extension of unemployment benefits and suspension of taxes on those benefits through 2009.

Modernize Federal Infrastructure

• $46 billion for transportation and mass transit projects.
• $31 billion to modernize federal buildings.
• $6 billion in water projects.

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.
• $87 billion to help states with Medicaid.
• $10 billion to National Institute for Health
• $17 billion to modernize health information technology systems.

Improve Education

• $54 billion to school districts and states.
• $21 billion for school modernization.
• $17 billion to boost Pell Grants.
• $13 billion for Head Start.
• $12 billlion for special ed programs.

Invest in Science Research and Technology

• $10 billion for science facilities.
• $4 billion to increase broadband infrastructure.
• $4 billion for physics and science research.

Help Small Businesses

• $54 billion to help small businesses through a variety of tax incentives and write-offs.

Obama increased spending from the $190 billion plan he proposed earlier, after realizing that dramatic and aggressive action is needed to stem the economic crisis. Some components of that plan, such as enacting a foreclosure moratorium, have already been implemented by Fannie Mae. Others, such as eliminating taxes for seniors making up to $50,000, are still part of Obama's economic agenda elsewhere.

Obama's biggest challenge is to create enough of an economic stimulus to soften the recession, but not big enough to create further doubts about the ballooning Federal Debt, now over $10 trillion. In fact, the package includes legislation to raise the debt limit to $12 trillion.

How Will the Plan Work?

Obama's tax rebates will encourage consumer spending, although many doubt that it is enough. The stimuli for businesses will help revitalize the economy, especially helping small businesses. The state aid will help keep them from having to either raise property taxes or cut needed services. The public works construction will retain or add 3 million jobs, and lower transportation costs. All incentives should be removed once the danger is over to reduce the deficit and avoid future inflation.

Once again Mr Obama delivered yet another remarkable speech to show his anger to answer the critics of his Administration's "American Recovery and Reinvestment Act".

Quoting one of his sentences in the speech, "But what I have also said is – don’t come to table with the same tired arguments and worn ideas that helped create this crisis.", Mr Obama clearly leads by example doing the "CHANGE" that he preached so often during his election campaign and the one which partially led to his election victory.