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U.S. House approves $819B stimulus bill
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CTV.ca News Staff
Date: Wed. Jan. 28 2009 9:39 PM ET
Working with speed usually unseen by politicians in Washington, a Democratic-controlled House of Representatives approved President Barack Obama's US$819 billion economic stimulus plan Wednesday evening.
The vote was 244-188.
Obama said his country is at a "perilous moment" which required swift and decisive action.
House Speaker Nancy Pelosi declared a new era has begun in Washington, just more than a week after Obama took office.
"The ship of state is difficult to turn," the California Democrat said. "But that is what we must do. That is what President Obama called us to do in his inaugural address."
Despite intense lobbying by Obama, Republican representatives spurned the bill, saying it relied too much on spending and not on tax cuts.
The bill includes about US$544 billion in government spending and US$275 billion in tax cuts for individuals and businesses.
It includes infrastructure money for highways and mass transit. Other measures include moves in unemployment benefits, health care and food stamp increases.
The package will now head to the Senate, where Obama hopes it will get more Republican support.
"I'm confident we're going to get it passed," he said.
Obama met with business CEOs Wednesday and left the meeting saying all "left our meeting confident that we can still turn our economy around."
Unemployment is at its highest levels in the U.S. in about 25 years and the banking industry is in a perilous situation despite the billions of dollars already funneled their way.
"Another week that we delay is another 100,000 or more people unemployed. I don't think we want that on our consciences," Democrat Rep. David Obey, chairman of the House Appropriations Committee and a leading proponent of the legislation, said.
Experts say the bill may not look quite the same after it goes to the Senate.
Jim McTague, the Washington editor of Barron's Financial Weekly told CTV Newsnet that Senate Democrats will face pressure from both Republicans and the more conservative members of their own party.
"It won't be a slam dunk because there are a lot of fiscally conservative Democrats in the Senate," he said. "I think the bill will be tweaked in the Senate."
Following the vote, Obama invited House and Senate leaders from both parties to join him at the White House for get-to-know-each-other drinks.
With files from The Associated Press
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.
Comments are now closed for this story
Bernard Romanycia
said
This plan doesn't seem to add up to anything but future inflation. When the world figures out that the United States can not service it's debt we should see the Dollar sink faster than the Twin Towers on 9 11.
Michelle
said
Jim S. Winnipeg
said
Republicans are largely responsible. They still think tax cuts are the answer. Thats like the average person saying that, while I make less now I will spend more so I can keep my job and, since I will be deeper in debt, no problem. My kids can pay off the debt. Talk about financial mismanagement. Obama is wrong to. The dollars in the stimulus package need to go directly to people to live and pay their mortgages and rent. This being the case, the banks will get their money monthly rather than have the ability to squander it as has been the case, stores and factories will stay open since people are spending.And the stimulus package can be much less. Let the money trickle up for a change. Republican trickle down has never worked except for the wealthy. And of course the millionaire senators and opportunistic representitives.
How do you get the money into the hands of ordinary people? Simple. Have a personal income tax moritorium for 60 days for those who make less than $100k. This frees up real spending dollars. The reduced revenue to the government will be offset by the reduced stimulus dollar amount and increased corporate and sales tax revenue. And oh, people can work, eat, shop and pay bills and still stay in their home. And the banks get their outstanding loans paid. The economy rebounds and then the US can balance its budget and begin to get out of bankruptcy.
Chris
said
Bush's tax cuts to the rich and his war in Iraq cost billions of dollars, not to mention the years of weak financing standards.
The U.S.A. debt-to-GDP ratio is already at about 50%
The U.S.A. could stand for "Ultimate Spending Addict"
Gordon in Sarnia
said
Red X
said
Hopefully some of that money trickles into the Cdn GDP. Probably, more helpful than the makeshift reno and infrastructure apps for the work till 2010?!
Graeme
said
Democrats always get a bad rap for "tax and spend" but Clinton was probably the most fiscally responsible president the US had seen in years. Republicans (or Conservatives in Canada) always start out anti-deficit but eventually they fall into the trap of continuously cutting taxes without an equal cut to services and we end up in deficit. Tax cuts are good, but deficit spending is just what I call a "coward's tax hike".
But now we may have no choice for a few years.
Doug BC
said
I see Iceland is already in bankrupcy.Both the UK and the USA are struggling to fix their problems,and what are we doing?? At the did agree to help by a stimulus packeage worth 2% of GDP.I don't like the deficits,but remember,before all this unfolded,the Conservative party was the ONLY party commited to aggressive debt reduction in Canada.A very wise path to take.Since I am not fond of Mr.Harper,but the Liberals are far worse.They wanted to spend even more of the budget surpluses we recently had.
Yes "Michelle".Sadly I have to agree.There is a distinction between Americans and Canadians.In the USA,people ask "what can I do for my country"? In Canada we ask "what can I get "free" from my government"?
How sad for us.And how sad it will be when the numer of Canadians standing in line for freebies becomes longer than the lines of people who work hard,and have to pay for those freebies.
Socializing health care and some education is a reasonable compromise from real Conservatives.Sadly,it has encouraged the very lewft wing social engineers to try to socialize every aspect of our societies.In that environment,with sky high taxes and a 65 cent dollar,there is no incentive to work hard or improve your earning capacity.That's why we have a "brain drain".The ones who want freebies stay here,those doctors and well educated go where they can keep more of their earnings.
Doug BC
said
In Canada,that ratio is now at 28%.The lowest in the G7.
We need less in real dollars for a stimulus for a couple of reason.We are starting a better position to start with.But even more importantly,our economy is so small that we cannot have an impact on the global economy,where our exports fuel our economy.
Oddly,now that more people are realizing how much our prosperity depends on our exports,there is less noise from the Anti USA crowd.How is that? Did you get laid off because Americans aren't buying the cars you make or the lumber you mill?
Wake up people.A healthy USA is a good thing for Canada.And yes,we can be friendly,without being submissive.Though,it would be helpful if we could continue to reduce our debt and find other options for our exports.
Debt is a much bigger threat to our sovereignty than any other single threat.
But we all need to know that only our domestic economy can be improved by any stimulus in Canada.And it is only 25% of our GDP.
Gail (Hamilton)
said
Kevn in Alberta
said
Andrea
said
I have a cousin who works in the USA govt, and she just happens to be a graduate from Harvard University, with a Masters Degree from a public Health field, and believe me, they are making changes to their education and health care system.
But I also agree, there is a difference from the USA and Canada. USA is super power and needs the bailouts, where as Canada's economy is in better shape.
What our govt should be doing is investing, and not bailing Companies like Nortel out. Also be looking at renewable energies.
Piroska-San Diego
said
James from Canada
said
Jeff
said
KJ in Kingston Ontario
said
It's about as sound a plan as spending Canadian money we don't have!
Cambob
said
The GDP of the US is around 14 Trillion anually.
Yes, they can afford to spend a bit to ease this current pain. And so can we.
James from Canada
said
The Democrats in the United States with the support of Congress will get out of this recession sooner or later. It is nice to have that confidence.
A. Conda
said
Dale
said
eddytoronto
said
such measures will cause a recession to turn into a full scale depression possibly worse than that of the 1930s.
NDP explaines stimulus funding is such a destructive policy.
NDP!
“It’s because the government is spending it. If the people were spending it it would be fine, but the government never does anything productive. They have to take money from productive individuals and spend it in non productive ways, so it’s just digging a bigger hole, getting us into bigger debt, and that is the problem.”
This stimulus package is going to cost each and every Canadian $6000 of more debt, so how can that be beneficial? If debt was the answer we would of never had a problem.”
“We are doing exactly what we did in the 1930s, we are taking a recession and working very hard to try and turn it into a depression.”
We’re on the verge of destroying the dollar. So if you think the financial crisis is bad, and the financial system isn’t working, wait ’til you find out when the Dollar doesn’t work.”
By liquidating debt, allowing the market to operate freely and allowing prices to come down will the problem be corrected.
NDP
“We never had a hands off approach thats the fallacy and as long as we believe that we will never correct our problem. If you blame Capitalism and free markets and sound money for this then we cant win the intellectual fight.
“Even Obama’s administration wants to increase spending overseas and increase military spending. As long as you want to run the world empire at a trillion dollars a year, believe me you cannot solve this problem.”
kate
said
Steve M. Ottawa
said