The size of the Stimulus Package.

The 140 billion dollars of stimulus package announced on Friday says one thing clearly. With the Fed Chief himself hinting at a Save the Economy plan, chances are we may already be in a Recession.


But how paltry the 140 billion dollars seem....? It's roughly 1% of the Overall GDP of the US. It's assumed to rescue the economy from the troubles caused by the housing market. The housing market makes up around 10% of the economy and indirectly influencing consumer spending (that in turn makes up two thirds of the economy) in big ways. How can a 1% injection save a 10% that has gone really really bad?

Maybe, the neo cons in the administration should go easy on the unnecessary war, bring the boys back, and divert the 150 billion dollars being spent there to homeland security. More homeland security would indeed mean more on land jobs for many people. It's a pity that the 600 billion dollars spent on the war may have been spent on the wrong cause of propping up an unstable state, and may have been better spent keeping the country safe from the inside.