What Are Some Good Economic Stimulus Plans?

by Guest Blogger, 1/13/2003

The chart in this article provides a comparison of some economic stimulus plans that have not come out of Congress. For a comparison of the Bush plan with Congressional plans, see this chart.

The chart in this article provides a comparison of some economic stimulus plans that have not come out of Congress. For a comparison of the Bush plan with Congressional plans, see this chart.

What Goes in to a Good Economic Stimulus Plan?
(Cost in Billions of Dollars)
  Economic Policy Institute ($175) AFL-CIO Plan ($260 +) Democratic Governors Association ($157) National League of Cities ($145.5)
State Relief * One-time grants to states to offset financial crises and preserve health, education, law enforcement, and other critical services ($50)

* One-time grants to states for school repair and renovation ($25)
* Provide states with fiscal relief to cover Medicaid costs, maintain and expand SCHIP, meet security needs, increase the Social Services Block Grant, and assist states in meeting federal education mandates ($85) * Immediate one-time fiscal relief to states, including a temporary increase in the federal Medicaid contribution ($50) * One-time grants to states to for school repairs and rennovation ($25)

* One-time grants to states for unmet homeland security/infrastructure needs ($10)

* One-time grants to states for temporary increase in the federal Medicaid contribution ($10)

* One-time grants to states for highway and transportation funding ($5)
Total State Relief: $75 $85 $50 $50
Unemployment * Federal extension of unemployment benefits and one-time grants to states to expand eligibility to part-time and low-income workers ($25) * Same as EPI plan

* Also suggests extension of health insurance benefits to unemployed workers, perhaps through subsidies for maintaining insurance ($25 +)
* Immediate retroactive extension of unemployment benefits for 26 weeks

* Full reimbursement to states for costs

* A six-month $50/month increase in SII benefits to low-income seniors
* Federal extension of unemployment benefits ($10)
Total Unemployment Assistance: $25 $25 + $19 $10
Tax Cuts * One-time tax rebates of 3.5% of the first $15,000 in wages ($65) * Same as EPI plan, or

* Flat rebates of $1,000 for low- and moderate-income workers
* A 2.5% refundable tax rebate on the first $15,000 of wages, so every worker gets up to $375

* Tax incentives for small businesses to invest in technology

* High-speed Internet access for rural and inner city underserved areas
* One-time tax rebates of 3.5% of the first $15,000 in wages ($65)
Total Tax Cuts: $65 $65 - 150 $75 $65
Job Creation and Infrastructure Investments N/A * Investments to rebuild the national industrial core

* Investments in transportation and transit system and infrastructure

* Investments in building and refurbishing our drinking water and wastewater infrastructure

* Investments to build, modernize and repair public schools ($185)
* Direct investment into school construction and repairs and security upgrades to highway, port, airport, and borders * One time grant for transitional job creation in cities and towns ($.5)
Total Cost, Job Creation, Infrastructure Investments: N/A Not costed out; some would be included in state grants $13 $.5
Minimum Wage Raise the minimum wage
(Not included in cost)
N/A N/A
Other Temporary Spending Other one-time spending (some examples--hiring more teachers, training teachers, cleaning up superfund sites, accelerating investments in sewage treatment plants, etc.)
($10)
N/A N/A * Local grants for first responders ($7)

* Local grants for rennovation of aging water infrastructure ($5)

* Local grants for hiring and training law enforcement ($3)

* Local grants for transportation projects ($2.5)

* Local grants for funding HOME program ($1.5)

* Local grants for emergency school repairs ($1)

Total Cost - Other Temporary Spending: $10 n/a n/a $20