Economic Stimulus Plan

The federal government occasionally uses economic stimulus plans to prevent or soften periods of recession. The federal Economic Relief Act of 2006, which the federal government will apply next month to a third of the states, reduces U.S. job creation by 26,000 people this year. The federal deficit grew 7 percent during the current financial year.

And the stimulus is not just a temporary measure designed to encourage firms or states to raise money but also a tool in Washington to help Americans feel good about their future financial stability in the near future. The current U.S. government spends...