¶ … 2009 Stimulus Package. The stimulus was $787 billion. The questions: What is the breakdown of spending allocated by state? Where did the money go?
The 2009 Stimulus Package
The American Recovery and Reinvestment Act of 2009, (ARRA) otherwise known as the Stimulus package was signed in 2009 by Obama as reaction to the recession and designed to create jobs as soon as possible and to help those hit by the recession. Other objectives were to provide temporary relief for those impacted by the recession and to create solutions for infrastructure, education, health, and 'green' energy. The approximate cost of the package at the time of passing was $787 billion. This was later revised to $831 billion between 2009 and 2019 (CBO (2012)
The Stimulus package was based on Keynesian economics that argued that during periods of economic hardship, the government should step in by increasing public spending which would in turn stimulate more private spending by giving people the money to do so and by creating a large flow of money in the economy. Doing so would also save form further deterioration.
The breakdown
1. Aid to poor and unemployed
a. $40 billion to provide extended unemployment benefits through December and to increase this by $25 per week.
b. $20 billion is contributed to additional food stamps and to increase this by %14
c. $3 billion is allocated for temporary welfare benefits.
2. Direct cash payments
$14 billion is allocated for one-time $250 payments to Social Security recipients, poor people on Supplemental Security Income, and veterans receiving disability and pensions.
3. Infrastructure
a. $46 billion for transportation projects, (which includes $27 billion for highway and…
History tells us, evidently, that the worse a slump, the quicker the recovery because there's nowhere else to go but up. The rebounds from a bad economy were very strong. Now there's something to look forward to for those millions of Americans who can't put bread on the table for their kids. But, why is the stimulus not working all that well. In actuality, the government threw in around $800
Stimulus Bill Political Communication Political Communication during the Stimulus Bill Debate In times of economic uncertainty and national emergency, the government has the capacity to make decisions that it believes will aid the country in its time of need. Such a time of need occurred in 2009 when the country continued to face an existence of dire economic circumstances involving national cash-flow and jobs. In order to set economic recovery into motion,
The more jobs that can be created with this money, the more people that can get back to work and the money people that can get on with their lives. And that is exactly what the people of New York City want to do. Works Cited Hill, Jeffery. "What the Stimulus Bill Really Means for Cities." 2009. Next American City. 7 June 2009 http://www.liu.edu/cwis/cwp/library/workshop/citmla.htm "House Passes Stimulus Package; Rep. Michael E. McMahon Secures
These can include the stimulus package, though, because the Obama Administration is still offering stimulus dollars to banks and other companies that need help and cannot take care of their customers in the way that they used to and preferred to. Figure 1: How Severe is the Subprime Mess? Obviously, the subprime mess is a serious concern for everyone. The stimulus package was designed to help the banks and the people
Fiscal Policy Between 2007 and 2009 the U.S. economy experienced a severe recession. In an effort to stimulate the economy, the federal government passed a stimulus package. Explain the federal government's use of fiscal policy (the stimulus) to promote growth and employment. Support your ideas with concepts found in the assigned reading. Include the following in your response: Government spending can contribute a significant amount of economic activity into the economy. When
The theory was that by giving consumers tax rebates, aggregate demand could be increased. This in turn would, along with the corporate tax cuts, give firms more confidence to increase their own spending. When the bill was being drafted, the economy was not yet in a state of total devastation, but there were signs of a pending recession. By drafting a bill that would increase aggregate demand, it was
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