Spending Bill Passes into Law: Will It Work?

The government of the United States of America is trying to rescue the economy by spending money. Yet, hundreds of billions of dollars in government spending may not be enough to improve the American economy.

Elected officials voted in early February to approve $787 billion for a rescue plan. Most economists and political observers say it may take years for the money to make a difference.

President Barack Obama signed the spending package into law on February 17. Obama became president on January 20. Officials called his plan a “stimulus� package.

Obama said the bill is the start of what is needed to create more jobs. He also said it would take other measures to turn around the economy.

Jobs, unpaid loans and car sales signal problems
The economy has been in a recession since late 2007. Millions of people lost their jobs during the decline.

The nation’s official unemployment rate increased to 7.6 percent in January. The rate is expected to increase in coming months.

Millions of people have not been able to pay back loans on homes. Car sales have dropped sharply during the downturn. Each week seemed to bring more evidence that the economy was continuing to get worse.

The $787 billion spending plan was the most important issue that Obama requested in his first weeks in office. Lawmakers in the Senate and the House of Representatives approved the plan on February 13.

The plan calls for spending $507 billion. It also includes $282 billion in tax cuts. Support for the plan split along party lines. All of the Democrats in the House of Representatives and the Senate voted for the plan.

All of the Republicans in the House of Representatives voted against it. The vote in the House was 246 in favor and 183 against.

Only three Republican Senators voted for the plan. The vote in the Senate was 60 in favor and 38 against.

Democrats hold most of the seats in both Houses of Congress. However, the Senate needed 60 votes for the bill to pass.