Democrats and Republicans have agreed on an economic stimulus plan.  The plan will give people of the middle class hundreds of dollars, mostly contingent on the number of children a family has.  The plan would allocate $600 to individual people; $1,200 to couples who pay federal income tax.  To people who do not pay federal income tax but earn more than $3000, they would receive $300 dollars per person or $600 per couple.  There is an additional amount per child.  People who earn up to $75,000 per person or $150,000 per couple will be eligible for the plan.  According to Nancy Pelosi, up to 116 million Americans total will be eligible.

The package is supposed to stimulate the economy in wake of the recently plunging stock market and the housing crisis.  Most people think a recession is approaching.

This economic package is expected to pass within the next two weeks.  The entire plan will be formally introduced by President Bush during his state-of-the-union address on January 28^th.   According to The Economist, recent data has shown that the median home price dropped by 1.8%.

The best part of the plan is the plan for tax cuts for businesses.  This will help business to invest in growth and help the economy.

To agree on a plan together, concessions were made on both sides.  Congress would do anything to prevent a mounting recession.  Democrats wanted to expand food stamps and unemployment benefits.  Republicans on the other hand wanted to give rebates just to those who paid income taxes.  Both backed down in order to do something quickly.

Glenn Beck on his television show on CNN Headline News gave his opinion on the issue Thursday.  He believes that because of our capitalist system, the market will always bounce back without government involvement.  He cited the New Deal as evidence that government intervention can even slow recovery from a recession.  He has a hatred of socialism which is what he calls the basis of this economic stimulus plan.

Reportedly a former executive with market experience is responsible for pushing the package to congress.

The gloomy market forecast is an important issue to me.  A recession will hurt me the most as a graduating college student, struggling to find a job.  If Glenn Beck is right and congress isn’t, that means it may be awhile before I can find a good job and in the mean time I’ll be living with my parents.  But the pending recession means a lot to most middle class Americans.

The promised relief should be in American mailboxes in June.

This situation will make a difference in peoples’ decision in the presidential election; the economy is now the biggest issue on everyone’s mind.  My own parents are now waiting to sell their house, waiting for the market to turn from being a buyer’s to a seller’s.  My father wants to retire but now he’s thinking about waiting another year.  People should really pay attention to what path their government is taking to ease their economic burden.

http://www.youtube.com/watch?v=cxXvsr9piLw