The American Recovery And Reinvestment Act

1532 WordsMay 26, 20167 Pages
In 2008, the housing market crashed, businesses were failing, and people were losing their jobs. This is how Barack Obama started off his presidency. Already, fingers were being pointed and cries were maybe. This would be the start off to Obama’s presidency. His creation of the Stimulus Package created a lot of criticism, but at the end of the day, it fixed the economy. Now Obama is ending his presidency with a flourishing economy and GDP Growth. Even if the Stimulus Package was one of the most criticized plans in his presidency, it did exactly what it was meant for, which was to fix the economy and create growth. After the crash of the market in 2008, Obama created the American Recovery and Reinvestment Act. The act was an “economic stimulus package”(Amadeo). The act would cost $787 billion. The act was meant to help families and small businesses instead of big business so that people in the United States could put trust into the system again which could stimulate spending and growth. For the purpose of stimulating demand, $260 million was put into cutting taxes, tax credits, and unemployment benefits (Amadeo). This included things like tax credit for first-time homebuyers, college tuition, and extended unemployment benefits. Stimulating demand and trust from the people was the biggest fitting puzzle piece of the stimulus package. The only way for an economy to flourish is when people get extra money that they can spend which would create growth in consumer
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