Recession

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Karl Marx and Friedrich Engels believed that capitalism has and does create an unbalanced accumulation of wealth. Unfortunately; we are now beginning to see the signs of the Marxism’s theory…..

It’s been along time since America or should I say the world has been effect by war, bad business deals and crooked Wall St tycoons (e.g. Bernard L. Madoff) have made millions at other people’s expense. Not since the Great Depression has the economy been so bad.

In the past, people pointed there fingers at Harry S. Truman, now we point them at Bush. I do believe he was the main reason for this recession, but I also wise enough to understand that was not the only reason…

All we can do is hope that the stimulus plan President Barack Obama implemented, does turn the economy around. Here is how the U.S dollar is been spent.

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.
  • Deduction of sales tax on new car purchases.
  • 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.

(Source: AP, Stimulus Package on Track for Final Votes, February 12, 2009; Bloomberg, Lawmakers Drop Broadband Tax Credit, February 13, 2009; WSJ, How It Adds Up, February 15, 2009)

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