BREAKING NEWS: U.S. House Passes Obama's Stimulus Package

Wednesday, January 28, 2009 | Tag Cloud

By George Whitten, International Correspondent

Washington D.C., USA (Worthy News) -- Confronted by the worst financial crisis in decades, the U.S. House of Representatives passed a $819 billion economic stimulus package, the biggest in the country's history.

The package, strongly backed by U.S. President Barack Obama, passed by 244-188, despite objections raised by House Republican leaders who fear federal spending could spiral out of control. No republicans voted for the bill despite Obama's pleas for bipartisan support.

"We don't have a moment to spare," Obama said at the White House as congressional allies hastened to do his bidding at a time of the worst economic crisis since the Great Depression.

A Republican alternative package proposal was defeated 270 to 159.


Democrats used Biblical terms to push their bill through with Alan Grayson (Dem, FL) saying it "shelters the homeless, and heals the sick.  It helps us to look forward to a day where we beat our swords into plowshares."

Under the bill, billions will go to public works as well as aid to state governments,  bailouts, and tax cuts.

The largest allocation of funds is designated for public works road projects such as highways and bridges.   The bill contains roughly $607 billion in government spending and aid to states governments.

Another major part of the stimulus package is a $212 billion tax-relief package which includes a plan to give a $500 payroll tax holiday. Other programs, initially planned, were scrapped from the package at the last moment, including an initiative to pay for contraception and reduce sexual transmitted diseases.

House Speaker Nancy Pelosi initially defended the policy initiative on Sunday on the ABC network's "This Week program saying, ""Well, the family planning services reduce cost...One of those -- one of the initiatives you mentioned, the contraception, will reduce costs to the states and to the federal government."


The Congressional Budget Office (CBO) told Congress Tuesday January 27,  the long-term cost of the estimated $819 billion economic recovery package would cost a total of $1.2 trillion. That includes the estimated $350 billion in interest the plan would cost because the government plans to borrow the money to fund the plan.

One estimate by the CBO said only $26 billion would be allocated this year on infrastructure and public works spending as states and cities.

The CBO also estimates that roughly 64 percent  of the $825 billion package would be put to use in 2009 and 2010, assuming a stimulus bill is signed into law in mid-February.

However, House Republican leaders meeting with Obama Tuesday, January 27, expressed concerns about the stimulus package, saying it only served "selfish" interests.


Representative Roscoe Bartlett told Obama: "Mr. President, I probably come at this from a slightly different perspective. I remember the Great Depression very well. I don't remember any of the many government programs affecting the course of the Depression."

With unemployment at its highest level in a quarter-century, he recalled that "Government programs didn't work then, I don't know why we think they would work now." Bartlett stressed that, "our obsessive borrowing has fully mortgaged my kids and my grandkids. Now we're working on mortgaging my two great-grandkids. Mr. President, I think it's more than a little bit selfish to try to solve our economic problems which we created by burdening future generations yet to be born."

Meanwhile the U.S. central bank, the Federal Reserve, announced Wednesday, January 28, that it was going to keep interest rates at historic lows for quite some time, which analysts suggested would keep rates at 0-0.25% for the rest of the year.

However, not all economic pundits agreed with the measure. Some economic analysts compared it to printing massive amounts of money and said low interest rates would contribute to an atmosphere of hyper-inflation.

On September 1, 2009 the U.S. government had $936.138 billion in circulation. Just three months later on December 1, 2009 there was $1,692.552 trillion dollars in circulation, according to estimates. Some economists have also raised red flags with the creation of $756 billion in brand new dollars in such a short period of time.

Chart of the Total Dollars in Circulation in Billions provided by the Saint Louis Federal Reserve
Chart of the Total Dollars in Circulation in Billions provided by the Saint Louis Federal Reserve

The U.S. Treasury Department announced Tuesday January 27,  investments of approximately $386 million in 23 banks as part of its Capital Purchase Program.  To date, the Treasury Department has invested $194.2 billion in 317 institutions.

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11 thoughts on “BREAKING NEWS: U.S. House Passes Obama's Stimulus Package”

  1. "Democrats used Biblical terms to push their bill through with Alan Grayson (Dem, FL) said, it "shelters the homeless, and heals the sick. It helps us to look forward to a day where we beat our swords into plowshares.""

    I do wish that these government officials would learn to stop using Scripture out of context. (End rant)

    • But, but, but Nebula! It works soooooooooo well! A surprising number of half baked evangelicals vote this party. Won't you please come to Chicago were I'd love to show you some! Any Sunday, we could do southside churches, three to a block! A short walk, and fellowship in the hundreds, maybe thousands! And I'm just talking pastors here.

  2. See Beloved Family Even On The South Side The Order Of Events Is Out Of Order

    For Evil Men Make Swords To Strike God's Israel And His Jerusalem

    "Proclaim ye this among the Gentiles; Prepare war, wake up the mighty men, let all the men of war draw near; let them come up:
    Beat your plowshares into swords, and your pruninghooks into spears: let the weak say, I am strong.
    Assemble yourselves, and come, all ye heathen, and gather yourselves together round about: thither cause thy mighty ones to come down, O LORD."
    Joel 3:9-11

    But God Will Surly Deal With Sinner Men

    "Let the heathen be wakened, and come up to the valley of Jehoshaphat: for there will I sit to judge all the heathen round about."
    Joel 3:12

    Then Peace Will Reign On Earth

    "And many nations shall come, and say, Come, and let us go up to the mountain of the LORD, and to the house of the God of Jacob; and he will teach us of his ways, and we will walk in his paths: for the law shall go forth of Zion, and the word of the LORD from Jerusalem.
    And he shall judge among many people, and rebuke strong nations afar off; and they shall beat their swords into plowshares, and their spears into pruninghooks: nation shall not lift up a sword against nation, neither shall they learn war any more."
    Micah 4:2-3

    And He Is The LORD Our God

    "Be wise now therefore, O ye kings: be instructed, ye judges of the earth.
    Serve the LORD with fear, and rejoice with trembling.
    Kiss the Son, lest he be angry, and ye perish from the way, when his wrath is kindled but a little.
    Blessed are all they that put their trust in him.
    Psalms 2:10-12

    Now Or Later Even Southsiders Will Know Him

    "And it shall come to pass, that whosoever shall call on the name of the LORD shall be delivered: for in mount Zion and in Jerusalem shall be deliverance, as the LORD hath said, and in the remnant whom the LORD shall call."
    Joel 2:32

  3. How to pay off our current national debt $10,600,000,000,000 dollars.

    $10.6 trillion

    Build the highest technology equipment with the highest markup and sell it to the rest of the world. For example, let just look at one business model and product that will be used to pay off the debt. What would be the impact to the world?

    For this example I used Boeing.

    To pay off the current national debt by Jan 1, 2010 Boeing would have to?

    Boeings outlook for new aircraft in the next 20 years.

    The current aircraft outlook for the next 20 years is that 29,600 jet aircraft are needed at about 3.1 trillions dollars. About102 millions dollars price per aircraft. Boeing makes about 3% on aircraft sales, 10% on military. At 50 tax rate they pay 3% income tax on average or about 3.06 million dollars per aircraft. If Boeing would build and sell every aircraft in the world for the next 20 years, Boeing would pay 29,600 x 3.06 million dollars or about 90 billion dollars. And the growth in air travel should be the same for the next hundred years.

    The question is about how many Boeing companies would the US government need to create to in order to pay off the last 820 billion stimulus package in one hundred years? Assume that 80 billions is paid in interest on the 820 billion for a total of 900 billion.

    90 billion x 5= 450 billion paid in taxes in hundred years by Boeing.

    The answer is 2.

    The national debt is now about $10,600,000,000,000. The national debt has doubled in the last 6 months.

    How many Boeing companies would the US government have to create to pay off the current national debt in one hundred years, not paying out any interest on the amount owed?

    Answer 10,600 billion divided by 450 billion = 23.55 Boeing companies would have to be in existence right now. Building a total of for a total of 69,724,444 aircraft in 100 years. (23.55 Boeing plants producing 29600 aircraft in 20 years)

    But the national debt doubles every 6 months, so on Jan 1, 2010 There would have to be about 47.1 Boeing plants producing about 140,000,000 aircraft in 100 years. There are about 248 manufacturing days next year so the production rate will have to increase from the current 13 per month to about 5622.93 aircraft per day in 47.1 plants for a total of 119 aircraft per day per plant. These 47.1 Boeing plants would employ about 5,600,000 million people directly at each plant. This new Boeing would be producing about 56,000,000 jobs related to this industry, suppliers, venders, partners plants.

    The current bailout package in congress does not even come close to addressing the any of the national debt, no news organization or any other government is addressing the US national debt.

    So these 61,600,000 people would have to work for 100 years to pay off the current US national debt using a company similar to Boeing to just pay off the debt accumulated by Jan 1, 2010.

    So this process would payoff the current US debt, but what about the debt accumulated over next 100 after 2010?

    If this trend continues for 100 years, this amount owed would be about $6,338,253,001,141,147,007,483,516,026,880,000,000,000,000 at zero interest.

    I can not even rap my mind around the next 100 years debt.

    God bless,

    Adam Spencer

    • WOW! Adam the Lord has blessed you abundantly with a head for numbers! I couldn't wrap my head around the deficit, much less the accumulating interest! As a businessman however I can grasp it's implications. I'd speculate by nature of the package it will do next to nothing for the economy, but it will fund tons of Democratic liberal agenda special interest pork that will pander for even more votes solidifying their base for elections to come. The deficit, and it's accumulating interest will also devalue the dollar, spike inflation, which we'll remedy with printing more money, until the dollar collapses on the world market. Our global creditors will demand repayment in euros or, lots and lots of useless dollars.

      That may lead credence to the wisdom of adopting the euro as our national currency, forfieting our soveriegnty in the best interest of our economy, and joining the Euoropean community in a new world order. After which persecution could start in earnest, as I'd anticipate Islam will have filled much of the vacumn Christianity will have left in it's wake in many of the major metropolitan areas. as Christians will flee the depravity for the bible belt states. Muslims will command a pretty impressive voting block the Democrats are already pandering to in Chicago, and elsewhere. Obama will not allow this crisis to be wasted, it will feed right into their socialist long term agenda. Just speculating of course, but it is a pretty scary scenario I think.

  4. Good article, George. And very interesting chart. I've wondered how much the total money supply has shot up. Though it was obvious without even looking that money supplys has gone up a lot, it's interesting to see just how much comparative to all previous years. The chart sure shows it's quite a jump. Soon we'll be in the ranks of Zimbabwe if we keep feeding money in through cheap giveaways of cash to banks, which is the conduit for getting the money into the supply. It's the worst way possible to end a crisis that began as a credit crisis due to cheap credit in the first place.

    I think Rep. Bartlett, however, must have been from a wealthy family during the Great Depression, as he certainly doesn't know what he's talking about. He's right, if he means that all of the government programs akin to bank bailouts back then caused no improvement. He's totally wrong about government work projects, though, as he does not distinguish them from programs that accomplished nothing. Both of my parents grew up through the Great Depression. My father to this day raves at how the CCC (Civilian Conservation Corps -- one of the WPA-type projects created by Roosevelt) kept him alive with the only sustainable employment he could find. He's also stated how he knew a lot of guys for whom the CCC was the only thing between them and total desperation. It kept people alive and no doubt kept a lot from suicide.

    The genius of those Workers Progress Administration type programs is that they didn't really burden the future with huge debt at all. That's because all the things they created on loan from the future were items that future would have had to pay to build anyway. So, the debt handed down was offset by the cost savings in not having to build those things later on. I went to high school in a school built by the WPA. They built libraries, parks, schools, highways and utilities that continue to serve us well all these years later. It was well-built stuff that kept people out of the breadlines. So, those stimulus projects handed us the DEBT, but they also handed us all the ASSETS. Unfortunately, bank bailouts hand huge debt to the future and ZERO assets. What does the future care if Citigroup still exists? If not Citi, some other bank will readily rise to fill in its place. So, it is unfortunate to see that so much of Obama's stimulus seems to be continuing the Bush bailout approach. That's an ENORMOUS mistake, as it hands the future a debt with no assets to offset the cost.

    (You've inspired the beginning of my next editorial.)

  5. And it contains a $5.2 BILLION payoff to ACORN for buying the election. Comes disguised under “Neighborhood Stabilization Programs.” It really pays to buy an election with registering Mickey Mouse, dead people, and others to "vote" for the President, doesn't it?

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