The American Recovery And Reinvestment Act Essay

799 Words4 Pages
On February 17, 2009, the American Recovery and Reinvestment Act was instated. This fiscal plan was created to stabilize the economy while it was spiraling down out of control. At the time, the United States was experiencing many economic problems and was very close to a collapse. The American Recovery and Reinvestment Act was created by Barack Obama to save 900,000 to 2.3 million jobs. The plan asked for 800 billion dollars but had to be approved by congress first. This plan tried to end the breakdown of the economy and boost it back up to its normal level of performance if not better. There were many plans that was proposed to the government on solving this problem. The only thing is that most happened to be neoclassical. Most government officials feared that a long term plan would never kick, the plan would need take full effect fast enough to sustain and level out the economy for the current path that the economy was taking. So the representatives in congress chose to pass Obama’s plan. The plan by Obama was a keynesian type of plan. “Keynesian economics is a theory of total spending in the economy (called aggregate demand) and its effects on output and inflation. Although the term has been used (and abused) to describe many things over the years, six principal tenets seem central to Keynesianism,” (Blinder) The first three describe how the economy works. This plan asked for full effect right off the bat with an 800 billion dollar loan, in which the loan would be
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