The American Recovery and Reinvestment Act

552 Words2 Pages
In 2008, the American economy broke down. Known as the Global Financial Crisis, this is widely considered to be the worst financial crisis since the 1930’s when the stock market crashed and the Great Depression hit. On November 4, 2008, candidate Barack Obama was elected for the first term of his presidency. The following February, The American Recovery and Reinvestment Act of 2009—or the ARRA—was signed into effect by congress, and made into law by President Obama on February 17, 2009. This stimulus package was originally proposed to be 816 billion dollars, but was eventually raised to be 840 billion dollars in 2012. The purpose of this bill was to inspire confidence in the American people that the economy would be up and running again. The ARRA was intended to give money back to small businesses as well as the American families who ran and worked at these businesses. This varies from TARP, or the Troubled Asset Recovery Program, which was a bill that was aimed at bailing out banks in October 2008. TARP worked to allow banks in danger to participate in reverse auction, in order to sell their assets. In order to restore hope and eventually safeguard 900,000—2.3 million jobs, the ARRA was intended to be spent over the course of a decade. It was very strategically planned, however, not to be spent evenly during that time. Instead, the following arrangements were made: 185 billion dollars in the fiscal year 2009; 400 billion dollars in the fiscal year 2010; and 135 billion
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