Responding to fears shared by most economists that the current recession might turn into a depression, President-elect Obama pulled out all the stops in early January and proposed the mother of all stimulus packages. He would devote as much as $775 billion over the next two years to stimulus.
The proposed package consists of both spending and tax measures. The proposed increase in spending is a massive $475 billion, roughly 3 percent of GDP. In addition, a tax cut of up to $300 billion would amount to about 2 percent of GDP.