Stimulus Package- Stimulating thoughts

My students in the Global Business course debated the issue of fiscal policy and the idea of the U.S. administration borrowing upwards of $2 trillion to finance a spending spree. These students, mostly in their first year, presented some interesting arguments. One student, CB, wrote a thoughtful, reasoned essay on the topic, which is being reproduced here. It highlights the feelings of a majority of students. It is really stimulating to engage with these folks.
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I have a tough time taking a position on this. I feel that certainly an economic stimulus is needed, but I fear that by supporting a stimulus package of this magnitude suggests a lack of accountability and responsibility. Who can possibly ensure that every dollar of the nearly 2 trillion is spent honestly? I suppose that the main concern that I have is that the money that is borrowed won’t be applied in the most economically efficient manner. Perhaps my head is not able to comprehend 2 trillion dollars, therefore I feel that a “loan” of that size is abstract and can easily be spent to the disadvantage of the future.

I would say that I am skeptical that such a package is going to provide the solution for which it is intended. However, as a college student needing loans to continue my education, I feel it necessary to proceed with funding to the educational institutions at least. For educational purposes I can justify, in my mind, the need for a stimulus package. With that said, I also can be persuaded to understand the need for “softening the housing crisis” (as put by an article in BBC) but I question the method of doing so. It is my opinion that it is not a good idea to lend money to the banks that made risky decisions in the first place that led to where we are now. So I question, is borrowing a good idea?

I would only condone borrowing what can be paid back, and who can predict that? Currently we are digging a financial hole that will be left to future generations to fill in with their salaries and taxes. But who is to say that without digging the hole that future generations would reach the day that they can pay back the debt? It may be a necessary evil, with the intent that it will serve good in the future. With that said, I still remain skeptical, and considering all things, am not sure that I want to see nearly 2 trillion dollars borrowed indefinitely.

On the other side, if for certain 2 trillion dollars was to be borrowed as an economic stimulus package, I would like to see the monies being invested in institutions of education. I come from a perspective that “grass roots” is the best form of development. With that said, education, and health services would be my priorities. Furthermore, I would consider a plan that reevaluates the banking system in terms of loans and interest rates. However; given my lack of knowledge in the complexity of the situation, I fear that I wouldn’t know where to begin. I would like to think that education is the most promising investment. Another thought that is crossing my mind, is that although it is vitally important to consider the economic recovery and stability of the United States, we are not an island, therefore, there is no way to assure our own economic stability without also ensuring the economic stability of the global market and other countries. There is a significant dependence between nations that must be considered to also be part of the economic stimulus recovery plan.