The American Recovery And Reinvestment Act Essay

The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a steady manageable rate. Mae West once stated “Too much of a good thing can be wonderful” and it seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing surplus and booming economy, instead of having an outsized tax cut, we should use the surplus to further pay down the national debt. A tax cut, though most Americans would favor it initially, would prove counter productive. Cutting taxes would over stimulate an already raging economy, and enhance the possibilities of an

The American Recovery and Reinvestmant Act, along with the Affordable Care Act, have mandated a change in the business of health care. Federal reimbursement is now based on prevention and patient outcomes. Our class web links to Centers for Medicare & Medicaid Services(CMS.gov) and Institute for Healthcare Improvement (ihi.org) have a wealth of information on how we are going to change our current health care delivery system. The president of Institute for Healthcare Improvement Pat Rutherford, has a video on how our system is going to change-It’s Art & Science. She explains that we need evidence based on research to provide the best medical care, and then customize care to each person’s values, preferences and needs. She explains that

Leo: Before the end of his term, President Bush passed TARP. TARP was a program that increased government spending to buy all the garbage CDOs. This program involved $800 billion in government spending which was limited to $475 billion due to the Dodd-Frank Act (TARP Programs 1). President Obama continued using expansionary fiscal policy by passing the American Recovery and Reinvestment Act which increased government spending by $787 billion and lowered taxes (Amadeo 1).

The idea behind the plan was to put more money in the pockets of people and businesses so they would purchase more things, increase innovation, reduce unemployment, and lower inflation.

The financial bailout on Wall Street rescued the economy from total collapse from faulty mortgage loans. Obama’s plans include reworking and changing the way the economy works for the better. George W. Bush gave tax cuts to Americans who earned over $1,000,000. A large sum of people don’t believe it was a fine idea. Obama will give tax cuts to working class people and small businesses, not to the wealthy. He will create tax credits of $500 per person and $1,000 per working families. Obama will also eliminate income taxes to senior citizens who less than $50,000 a year.

The late 1930s were a time of great suffering and uncertainty in the United States. The country was crippled by effects of the Great Depression; the result was a massive decline in jobs and economic stability that dramatically impacted both rural and urban communities. Millions of Americans were out of work, unable to support their families. State organizations and charities were unable to meet the growing needs of the people and many were left to fend for themselves. The Great Depression brought with it a legitimate, tangible fear about the future of America and its citizens. Upon the outcry of the American people a “New Deal” was struck giving the citizens of America a lifeline of hope in the ever-growing State. The New Deal was a succession of programs, organizations and laws, enacted by President Franklin D. Roosevelt, directly addressing the issues of jobs, welfare and uncertainty through direct federal involvement. The creators of the New Deal worked across party lines to reshape the norms of state involvement whilst making a great legislative effort to turn the declining economy around. The New Deal reshaped the federal government’s relationship with its citizens in a time of economic uncertainty helping to grow the State in a time of peace.

The National Recovery Administration was created by Franklin D. Roosevelt as part of the New Deal policies. The National Recovery Administration increased the prices of manufactured goods. It hurt the farmers that needed to buy tools and equipment. As they did not have the money to buy the taxed equipment, they could not do their job. It was a detriment both the consumers and the companies. “New Deal spending was supposed to stimulate the economy, but New Deal taxing depressed the economy.”

The news mediums, television, radio, print, or social media give information 24-hours a day regarding the economy. Individuals are not so sure about the reports issued on almost an hourly basis that are stating the economy of United States is improving. Many Americans are still without jobs, and do not believe their income can continue to support their families. The cost of purchasing a home is going up in many areas across the country, which is good for the market, but can be bad for the first time homebuyer. Unemployment, expectations, consumer income, interest rates are economic factors that influence individuals behavior and the United States fiscal policy.

The political need of one state is very different from those that occur in another. A statesman from Alaska need not worry about the same problems as a senator in Tennessee. Delegates from Tennessee may also have a varying degree of problems to solve. Tennessee's senators, Lamar Alexander and Bob Corker, have similar and varying views on how the United States of America should run based on the budget, environmental issues, and foreign wars. These two senators complete outstanding services, however, between the two, respectively, Lamar Alexander is the better politician.

George Santayana, a Spanish poet and philosopher said, "Those who do not learn history are doomed to repeat it." This quote applies to the Great Depression of 1929 and the Great Recession of 2008. There are many similarities between the two, like the causes, the actual events, and the aftermaths. Several factors led to the Great Depression, which were the following: overproduction by business and agriculture, unequal distribution of wealth, Americans buying less, and finally, the stock market crash of 1929. The Great Recession also had similar factors leading to it, like the housing “bubble” burst and less consumer spending. In both events, the Presidents enacted programs that they believed would help the American people.

Prior to the great depression, the U.S. economy alternated between periods of prosperity and sharp economic decline. During the great depression, aggregate demand dropped sharply, causing the price level and real GOP to decline. As aggregate output declined, the unemployment rate jumped, climbing from around 3 percent in 1929 to 25 percent in1933.

Fiscal policy: Given the breadth and depth of this recession, it was clear that the Treasury and the entire Obama administration had to take bold actions. In fact, right at the beginning, they were committed to a fiscal stimulus policy package which would be “substantial” enough to pull the economy out of the recession. The final stimulus package signed into law in 2009, the American Recovery and Reinvestment Act, was totaled $787 billion including about one-third tax cuts and one-third aid for states and the unemployed. Of the rest, labor health and education investment got 8%, and infrastructure investment got about 7%. It also included a large amount of government money to

Ever since the Recession of 2008, the process of acquiring employment has become extremely challenging and exhausting. After months of searching, a significant amount of job seekers are willing to accept any job offers that will allow them to put food on the tables. If you follow the United States’ economic recovery, you probably know that there are about 10.5 million unemployed Americans and constant debates about how to create more jobs. What you may not know is that there are actually four million open jobs waiting to be filled. So how is it possible and who is there to blame?

The policy response from the G.W. Bush is that there are three main parts to the fiscal policy stimulus. An individual tax that the Internal Revenue service sent out started in mid-2008. There were two business provisions that encourage investment during 2008 by increasing limits on expensing investment costs and accelerate depreciation of qualifying investments. The specific steps taken in early 2008 were the home owner purchases rebate and tax cuts.

Just after ten years of Asian financial crisis, another major financial crisis now concern for all developed and some developing countries is “Global Financial Crisis 2008.” It is beginning with the bankruptcy of Lehman Brothers on Sunday, September 14, 2008 and spread like a flood. At first U.S banking sector fall in a great liquidity crisis and simultaneously around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. (Global issue)