Boston Tea Party 2009

On Wednesday, President Obama adressed our economic woes once again. He promised that his administration has taken the time to make sure that his tax cuts go to the right people. He says that the tax cuts will go to America's working class. The cuts will allow people to continue to pursue the American dream. Obama believes that the working class is the backbone of our economy and they are the ones who deserve tax cuts and the most help. When it is difficult for these people to make money and live well in our society, naturally our economy will have trouble as well. Obama has said that he will directly put $120 billion into the pockets of 120 million Americans. While this sounds great, a smaller group of people are not satisfied. A group of people dressed as 18th century Americans dumped tea into the Boston Harbor in celebration of the very same event that took place hundreds of years ago, also protesting taxes in a way. However, these people are not the only people upset over our economy. Rallies took place from Chicago to Atlanta. Many of the participants were older people concerned for their children and grandchildren's futures in our nation's economy. Even in Rochester New York, a group of people threw a cooler with "TEA" written on the side into a body of water. Many American's are concerned for our nations economy with good reason.

The Fed will be busy thes next few years

The Fed said recently that the unemployment rate this year will top 10%. To put that in perspective, the unemployment rate in March (8.5%) was the highest in 25 years. The Fed has pushed back their recovery forecast as well. The are now projecting our economy to flatten out in the second half of this year and began an upturn next year. The fed had projected the economy to experience and upward swing halfway through this year but it could be a drop in consumer credit that is playing a role. Consumers are afraid to spend money and lenders are scared to lend. Consumers need security in order to spend but they can't feel that security unless lenders are willing to lend them money. However, lenders are not willing to lend for fear that consumers will not spend. It is this lack of a balance that has caused this economic situation and caused the Fed to push back their forecast for the economy.

Senate Rejection and House Acceptance

On Wednesday, an overwhelming number of Senate members voted against a fast-track budget procedure to pass the President's cap and trade plan to fight global warming. The plan was expected to cost families $3000 per year in new energy taxes. Republicans believe this plan would not help our current economic situation and all voted against it.
After the conflict relating to AIG handing out bonuses with their bailout money, the House of Representatives passed a bill that gives Treasury Secretary Timothy Geithener the ability to ban bonuses not based on performance standards. Most party members voted with their party with only 10 representatives crossed party lines in their votes for and against the bill.
The largest proposed change to our nations budget came when the House Republicans suggested an alternative to the Democratic budget plan. They suggested $4.8 billion less in spending over the next 10 years. The only places where Republicans suggested increasing spending was a $5 billion increase in defense spending and $540 million in veterans spending.