With the stroke of a pen on Tuesday, President Barack Obama signed into law a $787 billion economic stimulus package meant to help pull the country out of a deepening recession. A combination of increased spending, tax provisions and aid to states and citizens, the bill is a mixture of measures that supporters say are necessary to soften the blow of the growing economic problems. Facing a $5 billion or larger deficit, Minnesota stands to get about $9.3 billion from the measure, according to the Center for American Progress, a liberal think tank. According to the White House, over the next two years, the stimulus package will create or save 66,000 jobs in Minnesota as well. âÄúThe essential purpose of the bill is to stimulate jobs and invest in our nationâÄôs infrastructure, and it meets those criteria,âÄù said Rep. Keith Ellison , D-Minn., who voted for the bill. âÄúIâÄôm confident that weâÄôll see a real boost in the economy, certainly by the spring or summer.âÄù The billâÄôs gigantic price tag makes it one of the largest spending bills in history. With interest, the price tag could push beyond $1 trillion. The billâÄôs passage, less than a month into ObamaâÄôs first term, was a top priority for the president and the Democrat- heavy Congress. Though he sought bipartisan support for the measure, Obama found little âÄî only three Congressional Republicans voted for the bill, as seven House Democrats, including Minnesota Rep. Collin Peterson, opposed it. Murray Frank , University of Minnesota finance professor, was one of four University professors to sign a Cato Institute petition against the stimulus bill. The billâÄôs size âÄî more than 1,000 pages âÄî and itâÄôs quick passage means there is a general lack of information about where the money is going, Frank said. The only winners, he said, are only the ones the package actually has funding for. âÄúYou can write down theoretical models in which this sort of this thing would be helpful and you can also very easily write down theoretical models in which this sort of thing would be harmful,âÄù he said. âÄúAll of that remains to be seen.âÄù In Minnesota, this flood of money can be seen as welcome relief to a state with a $5 billion deficit, though much of the money comes strictly with strings attached. And, as Frank and Ellison note, there are no promises for a quick fix. âÄúNo one knows what exactly is going to happen, thereâÄôs no crystal ball out there,âÄù Ellison said. âÄúThis is our best guess as to how to reboot the economy, and I feel good about it.âÄù
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