The American Recovery and Reinvestment Act was signed into law by President Obama on February 21, 2009. The law had three major goals which were all aimed at stimulating a sluggish US economy. The first goal was to create new jobs and save existing ones by tax credits for hiring new employees. The second goal was to spur economic activity and investment in long term growth by increasing the amount of business asset that could be acquired by companies while allowing for immediate deductions for the cost of the assets as well as numerous tax credits for individuals and businesses. The third goal was to foster unprecedented levels of accountability and transparency in government spending by requiring recipients of recovery act funds to post acknowledgements on the Recovery.gov website.
The total cost of the Recovery act to US taxpayers was $787 billion dollars. The bill itself was created with the belief that increases in spending on the federal level would create and save jobs during recessions. More specifically, the purpose of the bill was to create jobs, drop the unemployment rate, stimulate the economy, have better quality of schools, and have better quality and efficiency of everyday life. The allocations of funds designated by the law are as follows: $81 Billion for protecting the vulnerable, $43 billion for energy, $59 billion for healthcare, $144 billion for state budget relief, $8 billion for other needs, $111 Billion for infrastructure and science, $53 Billion in education and jobs training, and the largest portion $288 Billion in the form of tax relief through the use of tax credits and increase business deductions.
The largest component of the bill was the $288 billion allocated to tax cuts. Businesses as w...
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Internal Revenue Service, (2011). Arra and the earned income tax credit Retrieved from http://www.irs.gov/newsroom/article/0,,id=205666,00.html
Internal Revenue Service, (2011). Energy incentives for individuals in the american recovery and reinvestment act Retrieved from http://www.irs.gov/newsroom/article/0,,id=206875,00.html
Internal Revenue Service, (2011). First-time homebuyer credit Retrieved from http://www.irs.gov/newsroom/article/0,,id=204671,00.html
The making work pay tax credit. (2011, June 17). Retrieved from http://www.irs.gov/newsroom/article/0,,id=204447,00.html
Recovery.gov track the money. (n.d.). Retrieved from http://www.recovery.gov/FAQ/Pages/ForCitizens.aspx
Recipient reported awards map. (2011, June 22). Retrieved from http://www.recovery.gov/Transparency/RecipientReportedData/Pages/RecipientReportedDataMap.aspx
...vailable for stimulus programs to boost the economy out of the 2008 financial crisis. This caused fewer jobs to be created, which meant less tax revenue and more debt.
(Klein) President Roosevelt took many of these ideas and put money into public works to give people jobs, as well as giving subsidies to farms to keep food supplies constant and accessible. Advocates of this approach claim it to have been successful, and many of the programs that were set up during the New Deal softened the blow of the 2009 recession decades later. Though these reforms did little to stop the recession from occurring in the first place, they did allow people the ability to weather the storm for a few years while the economy stabilized. Removing them would only leave open the people who would be hurt the most in another
After the Stock Market Crash of 1929 and the Hoover administration, something had to be done regarding the relief and recovery of the Great Depression. This was one of the more important objectives of Franklin Delano Roosevelt’s first term as president. Although Herbert Hoover made somewhat of an attempt trying to reconcile the country, but he was unable to live up to his rhetoric, “prosperity is right around the corner.” Hoover failed to comprehend the extent of the damage of the stock market crash from a global perspective and simply did too much too fast. When Franklin Roosevelt came into presidency in 1933, he set out his first hundred-day plan. Within the first term, FDR created a series of relief and recovery acts to start the prosperity and stimulation for an economic and social recovery. However, there are fifteen major pieces of legislation that were put into place that was highly influential to end the despondency of the depression. This paper will provide the fifteen infamous acronyms for these acts, what they were intended to do, and their impact for America and her citizens.
The New Deal was a set of acts that effectively gave Americans a new sense of hope after the Great Depression. The New Deal advocated for women’s rights, worked towards ending discrimination in the workplace, offered various jobs to African Americans, and employed millions through new relief programs. Franklin Delano Roosevelt (FDR), made it his duty to ensure that something was being done. This helped restore the public's confidence and showed that relief was possible. The New Deal helped serve American’s interest, specifically helping women, african american, and the unemployed and proved to them that something was being done to help them.
President Bush signed the Emergency Economic Stabilization Act (EESA), more commonly called “the bailout bill,” into law in October of 2008 (Woods, 2009). Under this framework, the Secretary of the Treasury enacted the Troubled Asset Relief Program (TARP) to buy up delinquent mortgages and buy ownership stakes in banks (Muolo, 2009). To fund the $700 billion economic revival, American taxpayers would be forced to foot the bill.
In the information presented by the Price Water House Coopers (PwC) report, “the $787 billion American Recovery and Reinvestment Act (ARRA) signed by President Obama on February 17 was an attempt to invigorate a faltering economy marked by rising job losses, falling GDP, continuing uncertainty in the capital markets and world economic weakness”. The main objective of the stimulus was the protection of existing and the creation of new job opportunities, while the secondary objectives included investments in infrastructure, education, health, energy and relief programs for the people affect...
...35). This important piece of legislation saved millions of dollars in taxpayer money, jobs, and led to economic prosperity for Americans.
Certainly, FDR promised much in his inaugural speech in March 1933, where he made assurances to bring back prosperity and “put people back to work.” The newly elected president hoped that his New Deal implemented in his first 100 days in power would bring about a revival in the nation’s fortunes. In order to judge the New Deal’s achievements, one must look at its aims which came three fold: relief, recovery and reform. Relief aimed to provide short-term to aid the millions suffering from the effects of the Great Depression, and many historians such as McCoy convincingly argue that the “New Deal’s greatest success was in the area of relief.” FDR’s New Deal was also successful in achieving its reform aims, as argued by Hill and many other
In 2009, the United States economy began to recover from the Great Recession. To aid in the recovery, the newly elected president Barak Obama created the American Recovery and Reinvestment Act better known as the second of two “Stimulus Packages.” Pa...
After the roaring twenties the american economy took a turn for the worst. The Great Depression, the Dust Bowl and the aftermath of WWII all impacted how the economy functioned. Stocks fell, people lost their jobs and their money, businesses failed and citizens were suffering. From 1929 to 1940, the U.S. economy struggled financially and President Franklin Delano Roosevelt devised a plan called the New Deal to try and pull America out of its economic defeat. The New Deal consisted of programs used to try and help reinstate consumer confidence, bring money and jobs to the people and help rebuild the stock market. There were three R’s used within the New Deal; Relief, Recovery and Reform. Relief was the immediate action to stop deflation and
The goal of the economic stimulus package is to improve the economic health of the United States. According to Keynesian economic theory, an increase in government spending should increase the Nation’s GDP . That is the main purpose of the stimulus package. The question is how much is this package expected to improve the economy? According to Macroeconomic Advisers (a forecasting firm), the GDP was expected to increase by 3.2%, while unemployment should fall by 1.1%, an...
...avoiding even deeper collapse of the global GDP and of employment. The government also created the Troubled Asset Relief Program (TARP), for the establishment and administration of the treasury fund, in an effort to control the ongoing crisis.
The 3 R’s had a great amount to do with the New Deal. The 3 R’s were the main goal for the “New Deal”. These 3 R’s being relief, recovery, and reform. These were the three programs that were going to help America fight the Great Depression. The relief was going to help provide temporary help for Americans. This was targeting unemployed and suffering Americans. The Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC) are two examples of the relief. They both provided jobs to millions of unemployed Americans and helped stimulate the economy. This category was most effective in stemming the turmoil of the depression. This is because the relief is what initially came about and helped many, actually millions of
US Energy Information Administration, Federal Energy Subsidies Direct and Indirect Interventions in Energy Markets, DOE/EIA-EMEU/92-02
Weltman, Barbara. "Tax Incentives for Going Green." NY Report. N.p., 3 Feb. 2010. Web. 06 Feb. 2014.