1. Stimulating the Economy By: Jackie Borzillo, Kelsey Silvius and Laurel Young

2. Intro/ History:  20s  1920s automobiles became the country's largest industry, led the way to other inventions.  stock market crash of 1929  30s  Great depression  40s  Government responsibility to maintain high employment, growth, and stable prices  WWII (war time economy)  50s  Korean War  the government enacted few major policies economy was fairly good

3. Intro/ History:  60s  LBJ building of the Great Society  larger societal shifts, such as the evolving role of women in the economy and changing consumption patterns  70s  Stagflation lingered throughout the 1970s: two recessions and the creation of price controls, floating exchange rates, and expanding global trade.  Productivity slowed had terrible effects on the U.S. economy.  80s  changing market structure and its effects on deregulation  90s  Job insecurity led to economic insecurity

4. Recent (late-2008 financial crisis)  Often called the Global Recession, Global Financial Crisis or the Credit Crunch  Is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s.

5. Present day  National level, the discussion moves to government budgeting and growth, employment, and inflation.  America’s smallest companies add up to 50 percent of U.S. GDP. Nearly 60 percent of the private sector workforce is employed by the small- business sector  The recession technically ended as of April 5 th 2010

6. Evidence/ Statistics 2011  Ranking Economy GDP (US dollars)  United States 14,582,400  Inflation rate for the U.S.  3.9 %  Unemployment rate in U.S (As of Oct/20/11)  9.0  Dropped to 8.5 as of Jan 6 th 2012  Stock Market loses  2010 at 7608.92, down 13%  Our national debt is now 15 trillion  Interest is around 3.7 trillion  Federal Budget deficit is around 1.3 trillion  Federal spending is around 3.6 trillion

7. Recent Developments 2011  Super Committee fails to agree on deficit- reduction plan November 21,2011  Republicans and Democrats were unable to compromise on the tax and spending issues that have divided Congress  Major topic for the presidential election  2 month payroll tax holiday passed by senate  Also unemployment extension

8. Cato Institute  Conservative Interest Group  Against Stimulus plan  More government spending will not help the government  Policymakers should make reforms to remove obstacles that prevent work, savings and investments

9. Cato Institute  Arguments against the Stimulus Plan  The Federal Government Is Broke  Spending Is the Problem  State Infrastructure is Well Funded  Rising Federal Debt Is Fiscal Child Abuse  A Bailout Would Flout State Fiscal Traditions  A Bailout Would Delay State Reforms  State Situations Vary  Bailouts Beget More Bailouts  Opportunity for Restructuring

10. “There is no disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy.” — PRESIDENT-ELECT BARACK OBAMA, JANUARY 9, 2009

11. Center on Budget and Policy Priorities  Liberal interest group  Unemployment insurance  Helps people who have just lost their job  Receive part of their wage  Up to 26 weeks  Promotes ways to eliminate poverty  Organizes programs for low income houses

12. Center on Budget and Policy Priorities  Works on issues related to and including  Medicaid and the Children’s Health Insurance Program Food stamps  Temporary Assistance for Needy Families  Supplemental Security Income  WIC and child nutrition  Low-income housing programs Low-income tax credits

13. Republican Position  Deregulate  Complete free market economy  Want government spending cuts across the board  Fiscal accountability  Policymakers should be accountable for spending  Typically want a balanced budget  Cannot spend more than they take in

14. Democratic Position  The Stimulus Plan  Tax cuts  More jobs created  Unemployment benefits  Education  Health Care  More regulation in financial markets  Want to use government spending to create more jobs  Want to reassure confidence in the economy to promote growth

15. Libertarian Position  Everyone is looking for a handout  Government only has the right to ensure the protection of property rights, judge disputes, and provide a legal framework  Government does not have the right to control wealth or trade

16. Video  GOP Plans to Stimulate the Economy  http://www.cbsnews.com/video/watch/?id=73 70028n http://www.cbsnews.com/video/watch/?id=73 70028n http://www.cbsnews.com/video/watch/?id=73 70028n

17. Democrats – Obama’s Jobs Plan Progressive income tax Pro: more tax revenue Con: not fair to wealthy; many loopholes to get out of paying full tax amount  Tax credit for first-time home buyers Pro: improves housing market Con: expensive in short run

18. Obama’s Jobs Plan (cont’d)  Money to improve infrastructure Pro: repairs old structures; creates jobs Con: lengthens projects to maintain jobs; expensive  Personal tax cuts Pro: increases spending Con: much of what we buy comes from outside U.S. → positive effects weakened

20. Republicans  Reduce federal regulations until unemployment drops Pro: eliminates regulations that are stifling job creation Con: too few regulations could cause problems like corruption  Eliminate Environmental Protection Agency Pro: extremely expensive to fund all of the EPA projects (i.e. greener factories) Con: environment facing many problems, like global warming, that we need to fix before its too late

21. Republicans – Cain’s 9-9-9 Plan  9% personal income tax, 9% sales tax and 9% corporate income tax Pro: simpler than current tax system; flat tax for individuals & businesses; shifts taxation from production to consumption Con: adds national retail sales tax on top of income tax; creates possibility of adding a Value Added Tax, which is unknowingly built into the price of everything

22. ResponseAll votersRepublicansDemocratsIndependents Approve39%63%14%43% Disapprove51%30%73%49% Not sure10%7%14%7% Republican Presidential candidate Herman Cain is proposing a change in the federal tax code to replace current personal income and business tax rates with a flat 9% rate on both, and to also have a 9% national sales tax. Do you approve or disapprove of this plan Cain calls "9-9-9"? Zogby ©

23. Bibliography  Bivins, Larry. "Lawmakers See Pros, Cons in President Barack Obama's Debt-reduction Plan." Postcrescent.com. Gannett, 20 Sept. 2011. Web. 2 Jan. 2012..  Center on Budget and Policy Priorities. Center on Budget and Policy Priorities, 2012. Web. 03 Jan. 2012..  Clancy, Dean. "Herman Cain's "999 Plan": The Good, the Bad, and the Ugly." FreedomWorks | Lower Taxes, Less Government, More Freedom. FreedomWorks, 6 Oct. 2011. Web. 02 Jan. 2012..  DNC Services Corporation. Democrats - Change That Matters. Democratic National Committee, 2011. Web. 03 Jan. 2012..  Lincoln, Blanche, and Dan Danner. "Open Letter to President Obama." Small Businesses for Sensible Regulations. National Federations of Independent Business, 1 Nov. 2011. Web. 03 Jan. 2012..

24. Bibliography (cont’d)  Mascaro, Lisa. "Super Committee Fails to Agree on Deficit-reduction Plan." Featured Articles From The Los Angeles Times. 21 Nov. 2011. Web. 03 Jan. 2012..  Newport, Frank. "Americans Favor Obama Jobs Plan by 45% to 32%." Gallup.Com. Gallup, Inc, 14 Sept. 2011. Web. 02 Jan. 2012..  RNC: Republican National Committee | RNC: Republican National Committee | GOP. Republican National Committee, 2011. Web. 03 Jan. 2012..  Roth, Zachary. "Cain Tweaks 9-9-9 Plan — for Poor, It’s 9-0-9." Yahoo! News. Yahoo! Inc, 21 Oct. 2011. Web. 02 Jan. 2012..  Schiermeyer, Corry. "IBOPE Zogby Poll: 51% Disapprove of Cain's 9- 9-9 Tax Plan & 48% Believe It Would Raise Their Taxes." IBOPE | Zogby International. Zogby International, 27 Oct. 2011. Web. 02 Jan. 2012..

25. Bibliography (cont’d)  Taylor, Timothy. "History of the U.S. Economy in the 20th Century." The Great Courses. The Teaching Company, LLC. Web. 03 Jan. 2012..  The Cato Institute. Cato Institute, 03 Jan. 2012. Web. 03 Jan. 2012..  U.S. Congress Joint Economic Committee. United States Congress, 2010. Web. 03 Jan. 2012..  U.S. National Debt Clock : Real Time. Usdebtclock.org, 2012. Web. 03 Jan. 2012..  World Development Indicators Database. "Gross Domestic Product 2010." World Bank, 1 July 2011. Web. 3 Jan. 2012. <http://siteresources.worldbank.org/DATASTATISTICS/Resources/ GDP.pdf  Wyss, David. "Obama's Stimulus Plan: Hits and Misses." Businessweek. 18 Feb. 2009. Web. 02 Jan. 2012..  "Year-End Review." Business News & Financial News - The Wall Street Journal - Wsj.com. Dow Jones & Company, Inc., 2011. Web. 03 Jan. 2012..