As the economy spirals down a tunnel of misfortune, the stimulus plan will be one step towards uprooting the nation from underneath the barrier of recession. The citizens of the United States of America wait anxiously to see the next route President Barack Obama will take.

Two weeks prior to taking office, President Obama proposed the stimulus plan. The president alongside other leading democrats, including the House speaker Nancy Pelosi composed the stimulus plan. The official document states that the American Recovery and Reinvestment Act of 2009, also known as the stimulus plan, is a step towards “making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and state and local fiscal stabilization, for the fiscal year ending September 30, 2009 and for other purposes”. Seventy percent approved Obama’s stimulus suggestion, while thirty percent, mostly Republicans, disapproved.

The Act is expected to have a positive impact on the economy. It is estimated to save and create over 3 million jobs in the United States within the next two years, and in the long term stimulate vital sectors of the economy such as public health and environmental sustainability. Seven hundred and eighty-seven billion dollars will be used to help stimulate the economy. The money will provide assistance to banks and bring relief to most Americans through tax cuts. By the end of the year 2010, it is predicted that around 75 percent of the total cost will have been spent.

The majority of the money going towards new projects some believe it embodies too much spending and not enough tax cuts, leading to counter-productivity. Those that argue against the ARRA fear the package will place an enormous burden on taxpayers in the immediate future. An alternative plan that includes more tax cuts was proposed but defeated. A conservative political group, Americans for Prosperity, petitioned against the stimulus package through their own website. The group’s website was terminated February 9 2009 primarily because the site was visited en-masse. Those who are not for the ARRA, make a point that this year’s deficit will surpass one trillion dollars.

The Act addresses the concern of unemployment and under title VIII; training and employment services will be given $3,950,000,000. Of the total amount, 500 million dollars will be granted to states for adult employment and training activities. States will get an additional $1,200,000,000 for youth activities such as summer employment.

California alone will receive 85 billion dollars in total benefits. Fifty billion dollars will be reserved as tax relief. Of the 50 billion, 2.57 billion dollars will go towards highways, local streets and roads, freight and passenger rail and various projects. Fifty-seven expected projects to be carried out will correct structural deficiencies, and will create 11,000 new jobs in California. California’s Transportation of Commission voted and announced the West Merced Overhead Project that will reconstruct two aging bridges along highway 99 in Merced County. The project will boost the local economy by creating over 800 jobs. The list of pending projects is predicted to be initiated within 60 days.