That the Economic Stimulus Act of 2008 will successfully mitigate economic slowdowns next year.

"To build a prosperous future, we must trust people with their own money and empower them to grow our economy. As we meet tonight, our economy is undergoing a period of uncertainty. America has added jobs for a record 52 straight months, but jobs are now growing at a slower pace. Wages are up, but so are prices for food and gas. Exports are rising, but the housing market has declined. At kitchen tables across our country, there is a concern about our economic future. In the long run, Americans can be confident about our economic growth. But in the short run, we can all see that that growth is slowing. So last week, my administration reached agreement with Speaker Pelosi and Republican Leader Boehner on a robust growth package that includes tax relief for individuals and families and incentives for business investment. ", it is because I agree with this quote from George Bush, that I affirm the resolution Resolved: That the Economic Stimulus Act of 2008 will successfully mitigate economic slowdowns over the next year. Economic Stimulus Act of 2008-The bill provides temporary tax incentives for businesses to make investments in their companies so that we create new jobs this year. The bill provides individual tax relief in the form of tax rebates. These rebates will amount to as much as $600 for individuals and $1,200 for married couples, with additional rebates for families with children. It was signed into action by George Bush on Feb. 13, 2008. Mitigate-To become milder Economic slowdowns-When the economy begins slow its economic growth, e.g. jobs, consumer products. Con.1-Tax rebates work Little A-What they are "Individuals and families are eligible to receive up to $600 for individuals and $1,200 for couples. A minimum of $300 per person and $600 per couple would be available to those with at least $3,000 of earned income. This relief would be available to everyone with adjusted gross income less than $75,000 for singles and $150,000 for married couples filing jointly. It will be phased out for taxpayers above those income thresholds. Taxpayers may qualify by filing a tax return for 2007 and including a valid Social Security number on their tax return." Little B-The G.D.P. increase It is basic Keynesian economics, which are country is based on, one of the main reasons are economy is slowing is because people are not spending their cash. So what do you do to help the economy, you put cash in the American people hands. It is big enough, because it is 1% of our G.D.P., which according to (The Economist January 17, 2008), "1% of the G.D.P. is just enough to get us out of our funk". So the government gives money to the citizens to spend, thus spending on commodities like gas, food, or even bills. American are struggling right now, people are living pay check to pay check and this act will help the middle class, who are the ones feelings the heaviest blow. Secondly it has been done in the past and people did spend the money on the economy, but this time it is even more money. "Altogether, the government is hoping to add $145 billion to the economy. While the exact amount per person hasn't been determined, some estimates on Capitol Hill put it at $800 per taxpayer. This would be almost four times the amount the government spent in 2002, the last time it tried to stimulate the economy.". Little C-Middle Class Also according to http://www.themiddleclass.org... ," a smart economic stimulus plan could prevent the downturn or soften its effects, but not just any stimulus package will do. To be effective, an economic stimulus package must direct money to those who will spend it quickly, boosting consumer demand and prompting increased production and economic growth. This Senate bill provides even more effective stimulus than the House legislation because the tax rebates are even more closely targeted to cash-strapped middle-class and aspiring middle-class Americans, who are more likely than wealthier people to spend the money they receive immediately, rather than saving it.", And that is exactly what this bill does for the American people. Little D-Elderly "Recipients of Social Security and certain veterans' benefits are also eligible for rebates. Those who receive at least $3,000 from any combination of benefits from these programs will receive rebates. The IRS and Treasury Department will be working closely with the Department of Veterans Affairs and the Social Security Administration, along with beneficiary organizations, to ensure that all eligible individuals are able to receive their payments.", What that means is that the elderly will receive money as well to stimulate the economy and according to William Novelli, Chief Executive Officer, AARP, "Tax rebates can be an effective stimulus measure, and [the Senate stimulus bill] provides tax rebates to millions of Americans, including over 20 million older Americans who primarily depend on Social Security for their retirement income. These older Americans spend 92% of their income -- a greater proportionate share of income than all other adults. This spending pattern strongly suggests that rebates for these individuals will be spent entirely and quickly, helping to provide an immediate boost to the economy.", so that will provide an immediate boost as well. Con.2 Sociological boost "There could be a psychological lift that ends the current gloom-and-doom atmosphere in corporate boardrooms. On Monday, the world glimpsed the depth of negativism when stock markets from Europe to Canada to Asia nose-dived. The US markets were closed for the Martin Luther King Jr. holiday. Economist Ethan Harris of Lehman Brothers offers a slightly different analysis. He estimates that a stimulus package of $100 billion could add 0.8 percent growth to the second quarter and 0.2 percent to the third quarter. "Perhaps even more important," he writes in a research report to his clients, "the policy would provide a psychological boost to the economy." , This means that it will boost the economy with providing hope to all the gloom that is happening. Con.3 creates jobs According to Ron Scherer | Staff writer of The Christian Science Monitor from the January 22, 2008 edition," "It may be too late, but it could mitigate the severity of the downturn or even jump-start us out of a recession," says Mark Zandi of Moody's Economy.com. "But I think that stimulus is helpful." Mr. Zandi, who is skeptical Congress will act quickly, estimates the proposed package could add $80 billion to real GDP in the second half of the year. That translates to about 1 percentage point of annualized growth. He also estimates that would support some 400,000 jobs. ", This means it can mitigate the job loss by providing jobs. "Long-term unemployment places an enormous strain both on families and on the economy. Extending unemployment benefits would not only give aid to the families hardest hit by the economic downturn but also provide a critical stimulus to the economy. The long-term unemployed, their savings depleted, quickly spend virtually every dollar they receive, mostly on necessities found in their local economy. Extending unemployment benefits during an economic downturn is not only the right thing to do for the families struggling in this economy; it is also excellent economic policy." –Heidi Shierholz, Economist, Economic Policy Institute (February 4, 2008)