Stimulus Cash Coming Soon?

Having passed in the House already and likely to succeed in the Senate, President Obama's stimulus plan could start pumping cash into the economy "within weeks," according to an analysis by the New York Times. The first effects would come in the form of $275 in tax cuts, reducing money withheld from workers' paychecks, and in unemployment benefits and food stamps, which would immediately be increased. Aid to states would also provide fast relief, staving off cuts to services that might otherwise knock the economy down even further. Some provisions like highway construction and school renovation would take months to get off the ground, however, and only about two-thirds of total spending is expected be completed within 19 months, according to the CBO. If the recession is over by then, the delayed spending could prove a drag on the economy by competing with the private sector, making the longer term components of the package more of a gamble.