China Unveils Biggest Stimulus since the Pandemic — Is It Enough? | DW Business

Sep 24, 2024 | The Chinese central bank is pushing stimulus aimed at reviving the country's stalling economy. The list of measures includes lowering borrowing costs and allowing banks to increase lending. This surprise news came as the Chinese economy has increasingly looked like it will miss its own 5% growth target for this year.

Barack Obama's $447 Billion American Jobs Act: 'Stop the Political Circus'
THE DAILY TELEGRAPH: Barack Obama threw down the gauntlet to Republicans, demanding they "stop the political circus" and back a new $447 billion (£280 billion) jobs plan to help revive the "stalled" American economy.


"There should be nothing controversial about this piece of legislation," he said. "Everything in here is the kind of proposal that's been supported by both Democrats and Republicans, including many who sit here tonight. And everything in this bill will be paid for. Everything."

The White House had briefed beforehand that the jobs package, to be called the American Jobs Act, would cost more than $300 billion. But Obama administration sources disclosed just before the address that the figure would be well over $400 million.

"It will provide a jolt to an economy that has stalled, and give companies confidence that if they invest and hire, there will be customers for their products and services," Mr Obama said. "You should pass this jobs plan right away."

The centrepiece of the plan was a deeper than expected $240 billion payroll tax cut for employers and employees meant to keep money in the pockets of those most in need. The plan's $447 billion price tag contains $175 billion to cut employee payroll taxes in half, to 3.1 percent in 2012.

Denying that the speech was "political grandstanding", he sought to shame Republican into action. » | Toby Harnden, US Editor | Friday, September 09, 2011

Markets Surge on Stimulus Hopes
BBC: US shares echoed gains in stock markets worldwide on hopes that new stimulus plans in the US and other countries will revive global economic growth.

The benchmark Dow Jones index was up 261 points or 3% in morning trading in New York, shrugging off Friday's grim unemployment numbers.

In the UK, the FTSE 100 ended up 6.2%, while Germany's Dax added 7.6%, and France's Cac finished up 8.7%.

Earlier in the day, stock markets around Asia also raced ahead.

The Dow Jones added 261 points to 8,897 by late morning, while the broader S&P 500 and the technology-dominant Nasdaq also gained.

"Despite bad US jobs data [announced on Friday], markets are gaining on a sense that they've hit the bottom and expectations for economic stimulus measures being put out by many governments," said Hiroake Osakabe at Chibagin Asset Management.

Other analysts were less optimistic that the rally would be sustainable while consumers and businesses were unable to access affordable bank loans.

"There's a chance we could be higher for the day, but I'd be very cautious about jumping in with both feet," said Scott Fullman, director of derivative investment strategies with WJB Capital. >>> | December 8, 2008

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US Shares Bounce on Obama Stimulus Package
TIMESONLINE: Shares on Wall Street surged by more than 200 points today on hopes that Barack Obama, America's President-elect, will go ahead with a huge stimulus package that could ultimately exceed $1 trillion.

The Dow Jones industrial average rose 241.65 points to 8,877.07 at midday in New York, following strong gains in London where investors sent stocks soaring to close up 249.88 points or 6.17 per cent to 4,299.2. Germany's DAX ended up 8.5 per cent and France's CAC by 8 per cent.

Earlier, Hong Kong’s Hang Seng index jumped 1,198.78 points, or 8.7 per cent, to 15,044.87 - its highest close in seven weeks - while Japan’s Nikkei 225 average jumped 411.54 points, or 5.2 per cent, to 8,329.05.

At the weekend, Mr Obama gave warning that “things are going to get worse before they get better”.

However, he also announced the biggest public works construction programme since Dwight Eisenhower created the interstate highway system half a century ago.

In his weekly radio address on Saturday, Mr Obama pledged a five-tier rescue plan to create jobs by combining traditional road-building projects with massive investment in new technology and green infrastructure. >>> Catherine Boyle and Tim Reid | December 8, 2008

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China Announces $586-billion Stimulus Plan
GLOBE AND MAIL: BEIJING — China announced a $586-billion stimulus package Sunday in its biggest move to stop the global financial crisis from hitting the world's fourth-largest economy.

A statement on the government's Web site said China's Cabinet had approved a plan to invest the amount in infrastructure and social welfare by the end of 2010.

Some of the money will come from the private sector. The statement did not say how much of the spending is on new projects and how much is for ventures already in the pipeline that will be speeded up.

China's export-driven economy is starting to feel the impact of the economic slowdown in the United States and Europe, and the government has already cut key interest rates three times in less than two months in a bid to spur economic expansion.

Economic growth slowed to 9 per cent in the third quarter, the lowest level in five years and a sharp decline from last year's 11.9 per cent. That is considered dangerously slow for a government that needs to create jobs for millions of new workers who enter the economy every year and to satisfy a public that has come to expect steadily rising incomes.

Exports have been growing at an annual rate of more than 20 per cent but analysts expect that may fall as low as zero in coming months as global demand weakens. >>> Scott McDonald, Associated Press | November 9, 2008

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House Passes $146 Billion Economic Aid Package
NEW YORK TIMES: WASHINGTON — The House voted overwhelmingly Tuesday afternoon to approve a $146 billion fiscal stimulus package, hoping to quickly seal a fast-paced deal with the Bush administration. But Senate Democrats forged ahead with their own, more expensive plan despite a rising chorus of warnings from the White House and Speaker Nancy Pelosi that they risk delaying much-needed help for the economy and could plunge the nation too far in debt.

The House vote was 385 to 35, with 169 Republicans joining 216 Democrats voting “yes.” Voting against the package were 10 Democrats and 25 Republicans. House Passes $146 Billion Economic Aid Package >>> By David M. Herszenhorn

Mark Alexander (Paperback)
Mark Alexander (Hardback)

Stimulating the Economy?

ALWAYS ON WATCH: This letter to the editor, in the January 26, 2008 edition of the Washington Post, sums up Always On Watch’s views as to the economic-stimulus package, destined to pass Congress in some form:

The back-patting by Congress and the White House over the proposed economic stimulus package ["Negotiators Grappling With Stimulus Plan; White House, Hill Strive to Maintain Bipartisanship," news story, Jan. 24] should be put in check by calling these "tax rebates" what they really are: tax loans. Unlike the checks issued in 2001, those proposed would not be part of a planned permanent tax cut and would thus have to be repaid by taxpayers (that is, us) sometime in the future.

Encouraging us to spend these "rebates" quickly instead of saving the money to pay off this tax loan is shortsighted. That behavior would lead to a quick economic high and then a deep low. It would be like abolishing paycheck tax withholdings and telling folks to spend the money as it comes in and deal with the tax bill when it arrives.

Today's plan may work to boost lawmakers' images in the short term, but it is merely a sham to those of us who will still be paying taxes once those public servants leave office.

Mr. Ryan Fitzgerald, the author of the above letter, has it exactly right! Putting money, so-called "rebates," into the hands of the American people fails to address the multiple causes of the present economic crisis.

And it is a crisis. The subprime mortgage crisis, Americans' penchant to spend over 100% of what they earn (via easy credit and other overspending), and the outsourcing of American industry cannot be solved by a one-time Congressional measure. In fact, the economic-stimulus package is like putting a bandaid on an arterial rupture and provides only short-lived relief. Stimulating the Economy? By Always On Watch

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Mark Alexander (Paperback)
Mark Alexander (Hardback)