Economic efficiency and economic sectors have both been a major focus of the stimulus.
But what about the other sectors, such as manufacturing, health care and finance?
The answer is surprisingly simple: they all require the same basic ingredients.
“What you need to have in the economy is a lot of low-cost production and a lot more production that is cheap, which is a good combination,” says Scott Wolsky, chief economist at the University of Michigan’s Ross School of Business.
Wolski believes the stimulus will help with that mix, helping the economy to “build momentum.”
“It’s not a perfect formula.
But it’s probably the best we can do,” he says.
It’s also worth noting that this isn’t the first time the U.S. has attempted to address the low-wage economy with stimulus.
In the 1980s, Congress passed the Earned Income Tax Credit, which helped many low-income Americans.
The current stimulus, however, has been more modest.
According to the Bureau of Economic Analysis, the stimulus program’s direct effect on the economy has been a $2.5 billion reduction in unemployment.
In comparison, the unemployment rate fell by 5.5 percentage points between 2009 and 2014.
The Obama administration has also been working on a proposal to expand the Earnest Income Tax Cut, a tax credit for low- and moderate-income workers, since 2013.
But the idea hasn’t garnered enough support to be included in the budget bill, according to a report from the Brookings Institution.
It has also received less scrutiny from Congress, according the study.
The Brookings report noted that the $1 trillion stimulus would not significantly impact the federal budget deficit, but the stimulus would add a total of $1,500 to the federal deficit over the next 10 years.
And while the bill would expand tax credits for low and moderate income Americans, the tax credits would be phased out over the course of the year.
The CBO’s estimate of the effect of the bill on the federal debt over the 10-year period is a total $3.9 trillion, which would have a net effect of about $1 million.
The Senate Budget Committee is currently holding a hearing to discuss the bill, and it will likely include language to increase the stimulus amount.
“The stimulus is an important part of the economic strategy,” Wolsker says.
“But if the stimulus doesn’t add much to the economy, there’s nothing to stop Congress from doing more to address those needs.”