The US dollar is weakening, the real estate market is in trouble, unemployment is slowly climbing, and gas prices are higher than they have ever been.
Many economists believe the US is headed into a recession or may already be there. President Bush, however, disagrees.
His stance seems to be one of preventative measure. The Economic Stimulus Package was put into effect recently, giving millions of taxpayers ‘free money’ to help jumpstart the economy. This program is giving $600 to each taxpayer, $1200 to couples, and $300 for each dependent child. The hope is that this money will offset spiking fuel prices and send consumers on a shopping spree giving the economy a boost.
President Bush is also attempting to convince Congress to make his tax cuts permanent, disallowing tax hikes in the future. This will hopefully “create certainty in the tax code.”
Will the program be enough to strengthen the spiraling economy? That is a question that quite a few economists are debating.
While President Bush, during his State of the Union Address, expressed that the long term stability of the economy would be fine, he made it clear that the short term problems need to be dealt with before the situation gets any worse.
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