The big financial news from this weekend is that Barack Obama, president-elect of the United States, has revealed his economic stimulus plan. He hopes to submit it to, and have it passed by, the Congress shortly after his inauguration on January 20, 2009. There are some main points of the economic stimulus plan, which are aimed specifically at helping the middle class:
- Develop renewable energy. This has been a selling points of Obama’s since the presidential campaign. By developing renewable energy, the president-elect hopes to create jobs while easing America off of fossil fuels.
- Rebuild America’s infrastructure. There is little doubt that the roads and bridges in America are failing to some degree. Updating the infrastructure would benefit everyone while providing jobs.
- Tax cuts, especially for the middle class. This move is meant to put more money into consumers’ pockets so that they will spend more money, providing economic stimulus.
It remains to be seen whether these measures will work, but the announcement of the economic stimulus plan is providing a boost to the U.S. dollar in forex trading, reminding many that the greenback still remains the world’s most powerful currency. However, there is speculation as to how long this state of affairs can last. After all, even the economic stimulus will promote inflation, and current policy moves could lead to future devaluing of the U.S. dollar.
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