Key U.S. economic stimulus package.

<P> U.S. government emergency consultations to seek remedy to stimulate the economy, optimistic about the expected cost within a month will launch programs to revitalize the economy of billions of dollars. .The program then can a truly effective, the key is whether the restoration of national consumer confidence, thereby stimulating consumer spending, driving to stimulate social employment, and ultimately the revitalization of national policy objectives. .</ P> <P>: http://finance. U.S. bailout, mainly due to the subprime mortgage crisis spread, shrinking consumer spending, economic growth slowed down significantly, the formation of the expected economic downturn. .The Fed on Jan. 16 in its Beige Book confirmed that under the impact of the subprime, are very weak U.S. housing market, and housing-related industries are also affected with the automotive industry, the banks become more stringent credit standards, loan demand .slowed. .</ P> <P> study the economic causes and consequences if not difficult to find, shrinking consumer spending was mainly due to the national decline in consumer confidence and spending power. .National consumption reduced ability to reason is because some of them entangled with the subprime mortgage dilemma, forced to reduce spending to meet mortgage payments; some of the people as property prices fell, prices dropped, resulting in decreased amount of borrowing by floor, with credit card spending power .the decline; some people it is because companies do not view lead to unemployment, natural to tighten their belts, reducing the daily consumption of non-life must be. .</ P> <P> The national decline in consumer confidence is largely determined bailout is not enough, the effect is not obviously directly related. .The reason causing the subprime mortgage crisis, the Government was committed, for example, monitoring for neglect of the mortgage market, resulting in possession of the sub-prime problems, initially found the problem, the wind at the end of Granny Smith, is long overdue to take more decisive measures. .The problem is, until the sub-prime disaster, the government still indecisive, not willing to take drastic measures to rescue the market an iron hand, politicians in particular, remained silent for fear of falling intervention in the free economic infamy. .Now the recession as expected, was feel the burn, the donkey as the two parties face a sudden all the politicians to play savior, scrambling to offer advice and strive to gain votes, it is ridiculous. .</ P> <P> U.S. bailout, government intervention in the economy are bound to, including through tax cuts. .According to reports, House Democrats and Republicans are considering include: a personal tax rebate to the company tax cuts, increase food stamps and unemployment assistance. .In addition, the Government will consider increasing funding to the state to help complete the infrastructure projects. .Government officials said President Bush told congressional leaders privately that he supported the use of a personal tax rebates and tax breaks to the company's practice to avoid the economy into recession. .According to the current state of affairs, if the program implementation is expected personal tax rebate three hundred to eight hundred U.S. dollars (couples tax rebate up to get one thousand six hundred U.S. dollars). .</ P> <P> the rescue measures, if implemented, the allocation of scattered clouds of economic recession that would help. .For example, the company tax cuts will encourage investment, expand employment opportunities, this is the most fundamental of the Department. .However, how much tax is appropriate? .Can be supplemented by tax cuts while continuing to cut interest rates? .After all, the company once the profit tax is clear investment and how it will be of benefit, but described an investment prospect. .In fact, the company once the investment, the more the main problem is operating cost, cost and use of funds which account for a large proportion. .Therefore, whether the existing company, or is about to invest in the company can enjoy low-interest bank, more critical for the survival of the company. .</ P> <P> ability to continue to cut interest rates, the test of the U.S. economy. .U.S. economy is about Qicheng by national consumption, over-reliance on consumer-driven, resulting in interest rates and cut interest rates dilemma. .Greenspan's tenure, the U.S. interest rate hike after a long period, the current high interest rates, there is great room for rate cuts. .The sub-prime crisis, the United States not only bail out the banking equity injection, but also has repeatedly cut interest rates to ease the plight of investors in subprime, but inadequate, ineffective, have every reason to continue to cut interest rates. .Last year the U.S. CPI up 4.1 percent annual rate, the highest record since the last ten years, look to cut interest rates now seems is not a good time. .</ P> <P> However, last year's U.S. core CPI 2.4%, lower than the previous year's 2.6 percent, there are signs of cooling inflation, coupled with successive U.S. stocks tumbled in recent months, also .not rule out the recent sharp interest rate cuts. .In the long run, if the economic problems from a fundamental solution, it can not be satisfied with the current "Young Tom just boiling," a policy is bound to adjust economic structure, the industrial economy and the consumer economy to achieve more appropriate proportion. .Of course, this may have to re-evaluate the current implementation of the weak dollar policy. .</ P> <P> As to the personal tax rebate, food stamps and unemployment benefits to increase funding for low-income people in the course as timely. .However, the "carbon" content can not be too much, otherwise it will support lazy people, the adverse employment rate and improve the community; if the "carbon" are small, barely enough to warm hands, warm heart is not enough for the role of consumer confidence and stimulate the market is not big enough .. .A more modest figure out how in the? .Government officials must test of wisdom. .</ P>.