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How the American Jobs Act Will Stimulate the Economy

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The US President proposed the American Jobs plan of $447 billion to spur the economy, which has been in crisis ever since the recession of 2008. Over the past decades, the wealth gap between the elite and the others has been widening and the recent economic downturn has revealed the fact that the Americans have been living on an illusion of wealth.

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									How the American Jobs Act Will Stimulate
the Economy

The US President proposed the American Jobs plan of $447 billion to spur the economy, which
has been in crisis ever since the recession of 2008. Over the past decades, the wealth gap
between the elite and the others has been widening and the recent economic downturn has
revealed the fact that the Americans have been living on an illusion of wealth.

Remember that the current economic problems were not created overnight. Therefore it will take
some time to tide over the issues such as unemployment, underemployment and foreclosure of
home equity and many more. The economic down turn had cut a swath of destruction through
the construction industry, hotel industry, and mid-price department stores. You must be aware
that it is the small businesses that are hit hardest as they are vulnerable to short-term economic
conditions. Small businesses are affected most because during any downturn there is lack of
consumer demand.

The logic is that growth is primarily spurred by small businesses. Therefore, tax breaks and
incentives are handed out to small businesses to promote growth. The Jobs Act includes

       50% salary tax cut on the first five million dollars in salary.
       There are no salary taxes on raises for present employees.
       There is no payroll tax on new hires up to fifty million dollars in salaries.
       The Act streamlines the process for small/medium businesses to qualify for government
       small/medium business programs.
       The process of financing for small businesses with one million dollar or less in start up
       capital is made simple and easy.

One forty billion dollars is allocated for modernizing educational institutions and repairing
infrastructure such as roads and bridges. This is critical to maintaining America’s
competitiveness in the interconnected global economy of modern times.

An economic stimulus is a government initiative to pump funds into an affected economy
through various methods such as accelerated spending, tax cuts or lowering interest rates on
business loans. The government replaces funds not being spent by businesses or consumers,
thereby putting the brakes on the recession and paving the way for return to high growth.




© 2011 Apptivo Inc. All rights reserved.
It is hoped that government intervention will stimulate the ailing economy and lead to healthy all
round economic growth coupled with equitable social justice. America deserves better and so do
its entrepreneurial people who reflect energy, enthusiasm and dynamism.




-Maya Pillai is passionate about helping small businesses and professionals. She is a blogger for
Apptivo's Small Business University .




© 2011 Apptivo Inc. All rights reserved.

								
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