Personal Finance
Why We Might Need Another Economic Stimulus?
By Jason Cunningham
Apr 24, 2009 - 4:10:42 PM

While people are still debating the merits of the 2009 Tax Stimulus Package, we might need an emergency stimulus within the next six months if the economy does not show major signs of improvement.

Why Life is Tough During These Economic Times?

Some people have mounting debts.  Unfortunately, many of us blame others for their financial struggles.  But, how do you blame the school teacher that has to buy supplies for his or her classroom because there is no more money in the school district’s budget for teaching supplies?  What about the recent college graduate who makes under $30,000 per year but has $60,000 in student loans?  How do we expect these individuals to survive in this economy?  Today, there are millions of stories of personal financial struggles in this country.

The Economy Could Get Worse!

At this point, we can only hope that this economy will soon recover.  If gasoline prices sneak back to $3 per gallon, the economy may fall deeper into recession.  Many businesses will stop investing money in improved technology and other related expenses if gasoline expenses threaten record prices in 2008.  Furthermore, many American workers have already maxed out their credit cards.  Where will they get additional money to pay their bills?

We still need to fear the job market.  With some auto companies currently on life support, we cannot predict whether the auto industry will experience massive layoffs in 2009.  But hopefully, the automakers can avoid bankruptcy and no one loses his or her job.

The Remedy

Honestly, I believe the U.S. unemployment rate, as calculated by the Department of Labor, will exceed 10% in 2009.  If this unfortunate statistic occurs in 2009, President Obama should consider giving every taxpaying family an extra $500 by Thanksgiving, for a double digit unemployment rate in 2009 may lead to further economic turmoil.  Businesses may be more inclined to let more workers go because there will be fewer people who can afford their products and services.  As a result, the U.S. economy could get real ugly during the remainder of 2009 before it probably improves in 2010.

Analysis

Let us pray for our economy.  Besides, most of us cannot afford to pay $3 or more for a gallon of gasoline in 2009.  The automobile industry needs to survive; otherwise, millions of people could lose their jobs.  If the economy gets any worse, President Obama needs to consider sending us a $500 check.