The President is currently stumping for another stimulus package. This package would be directed towards improving the infrastructure of the United States. Money would be used to fund public projects and put state and private sector employees back to work. The $50 billion plan is being discussed but has a ways to go before it gains passage in the House or Senate

Here are a few ways that another stimulus plan would affect you positively and negatively.

The Good

More Jobs

Unemployment is still hovering near 10% and another stimulus bill would help reduce this rate. The construction sector has been one of the worst hit sectors by the economic crisis. An infrastructure stimulus bill would put many of these workers back to work and lessen the burden on unemployment.

Stronger Infrastructure

Our roads and highways are crumbling. We have not invested significantly in our infrastructure system in the last 50 years. Roads, highways, dams, bridges, and tunnels need upgrading. Unless the federal government provides funding many of these projects will never get done.

Increased consumer confidence

The United States economy is all about confidence. Our economy is driven by consumer spending. When consumers feel good about the economy, they go shopping. They buy cars, clothing, electronics, and other products that help to increase GDP. Another stimulus may be the shot in the arm that the United States consumer needs to feel better about the economy.

The Bad

Bigger National Debt

The federal deficit is currently at 13 trillion dollars and is growing every day. Another $50 billion dollars would increase our debt burden and would mean more U.S. securities sold to foreign investors. We can barely cover the federal programs that we have now. Adding more debt on top of an already stressed budget may break the bank.


It’s only a matter of time before we enter an inflationary environment. The dollar will weaken and the cost of goods and services will rise. You can only issue so much debt without the value of your currency getting weaker. That is why investors are running to hard materials like gold and silver. As soon as the economy recovers, inflation is coming.

How do you feel about another stimulus plan?