Tuesday, September 7, 2010

Pres. Obama launches $ 50 Billion Aid for Infrastructure Development

The United States midterm elections are fast approaching. On November 2, 2010, about 435 seats in the House of Representatives and 33 or 34 seats in the U.S. senate will be filled with newly elected politicians who will serve in full term. Though there will be no presidential election to be held, this is a crucial moment for the Obama administration as they try to maintain the influence of the Democrats in Congress and Senate affairs. With a growing mistrust towards Washington, Democrats can’ help but seem worried about the upcoming elections.

It is indeed a trying time for Democrats as Pres. Obama’s administration is still incapable of devising the perfect solution to address the growing budget deficit, the declining economy and the problem with lack of jobs. According to the latest figures, the unemployment rate has now stood at 9.6% which is expected to increase as more business establishments, federal departments and state governments are cutting costs and manpower.

The low rating from Pres. Obama has also raised concerns on the political campaigns of numerous Democrats who are aspiring to get a seat in Congress or in Senate. On Monday, the president promised another 50 billion dollars to be spent for infrastructure development. He justified that this move will generate more jobs as more people will be needed to rebuild roads, railways and airports. It will provide a relief to individuals who have been suffering from unemployment for a long time.

Requiring the approval of Congress, the White House has called on Republicans to quickly support the passage of the bill which is seen as a first part of a broader effort to stimulate funding for the transportation sector over six years. There seems to be a growing problem with some Democrats already rejecting the possibility of spending more to add up to the huge budget deficit. A top Republican in the house of Representatives, John Boehner, has linked the new plan to Obama’s previous stimulus package which critics say was a failed attempt to save and revive the economy.

An administration official said the new projects would be funded without increasing the budget deficit by ending various tax breaks enjoyed by oil and gas companies. The 50 billion-dollar plan will also include improvements to the US air traffic control system, the promotion of high-speed railway projects and the establishment of an "Infrastructure Bank" to coordinate federal funding and planning for various government projects. Pres. Obama and his democrats hope that this bill will bring back the confidence which they certainly need come election time.

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