The Economy, The Housing Market and President Obama

The year 2009 will go down in history as one of the most significant and historical moments for our nation. It is the 2009 the American economy is suffering from what many considered to be a full blown recession. President Barrack Obama has stepped onto the scene and delivered some controversial but yet well needed help to the American people. This help comes in the form of a stimulus plan that focuses on the recovery of our economy and by assisting the housing industry in our nation.

The purpose of the stimulus plan is to start spending back up again so that our economy can begin to grow like it did before. This would be accomplished through the use of tax credits, increase in unemployment benefits, jobs creation, and aiding the housing sector. The plan is primarily geared toward the lower income to middle income people who would more than likely have a need to spend the money that they would receive from the government.

This spending would then help to stabilize the economy enough to keep people employed, businesses from closing, people paying their mortgage, rent, and other bills. Another major component of this package is to create green related jobs and jobs for the American infrastructure that would require a huge workforce to complete. Under this plan by the year 2010 these jobs would be in operation. By creating new sources of energy it is expected that new money would begin to flow through our society and of course this should lead to recovery.
 
The housing market is a major player in this financial meltdown. Homeownership is crucial to this economy because people will always need a place to live and homes are also important tools for investment and sources of income for cities and schools. By giving new homeowners an increase in their tax credit, most people would use this money toward paying into their homes. This in turn would help banks and lending institutions out a great deal to recover delinquent funds. In the long run all of this simply means is that banking institutions can start making loans again in order to play their part with helping to stabilize our economy.
 
The effectiveness of President Obama’s stimulus plan has not been determined at this point in time. The American economy will have to wait and see how things will turn out versus what the expectations are for this plan. For now the stimulus plan does seem like it is doing some good in our society but time will ultimately reveal the truth.