With the stimulus package passed and ready to invest about 819 billions of dollars into US economy plenty of expectations, questions and forecasts circulating about who and how will benefit from this stimulus package. I’ve went through the number of articles and opinions and tried to point out main benefits and blunders:
1. For most Americans, help would show up as a simple tax credit. Workers earning less than $75,000 a year will get a $400 credit for 2009 and 2010. Families making up to $150,000 would get $800. Higher-income taxpayers will receive smaller credits.
2. Priorities of the stimulus the most direct aid of the package would go to low-income people and others most suffering from financial crisis. Those who receives unemployment benefits will see a slight increase in their weekly checks. Unemployment benefits would last 46 weeks under. Some people in high-unemployment states, including California, could receive benefits for 59 weeks.
3. Another area where stimulus could be useful is a healthcare expenses for those who were laid off or otherwise lost their jobs. Theres is a COBRA program that lets people to continue their medical insurance after termination of labour contract. That normally costs over 1,000$ per month, but stimulus will pay 65% of your premiums for the first 9 months.
4. Upgrading infrasturcture with building new roads, bridges, improved rail and setting new electrical generation plants will surely benefit everyone. That will also spur the creation of new jobs although most of them will be temporary.
5. Stimulus is going to support large corporations rather than small companies. And while real job creation can only be achieved through stimlating small businesses we may not expect an immediate rise of demand at the job market, at least in short term.
6. Stimulus is not going to provide some tangible support for those who are still employed and don’t have any mortgages outstanding. The categories to benefit from stimulus will be only those who bought the first home, new car, have children sent to college and ones using solar energy.
