George W. Bush Stimulus Package Vs. Barack Obama Stimulus Package

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President Barack Obama signed The American Recovery and Reinvestment Act on February 17th, 2009 into law. This Act was an effort to jump-start the economy, and also to save and create millions of jobs in America. Obama selected Vice President Joe Biden to over look the application of the Act, while working with cabinet members, the nations governors, and mayors to make sure the implementation of the Recovery Act are not abrupt, but as efficient and effective as Obama intended. The Recovery Act called for $825 Billion which changed as it moved through Congress. However, in doing this it stirred up a lot of commotion with the Republicans within Congress, who favored a different approach to the economic dilemma. The Recovery Act is essentially an expansionary fiscal policy, in that it wants to increase government spending while decreasing taxes. The Act included $550 Billion to be spent within the first two years of it being implemented, much more than the government spends annually on programs. Which is not including defense and benefit programs such as Medicare and Social Security. Most of the $275 Billion in tax cuts would be going to the middle-income families in the form of $1,000 tax cuts, while businesses and other tax cuts would make up the rest. About $318 Billion would go to states and local governments facing the possibility of layoffs and/or tax increases. Another $102 Billion would be used to help victims of the recession with unemployment insurance, health care, food stamps and job training, jobless aid would also be increased by an extra $25 a week. As we can see the evidence is clear and growing by the day, the Recovery Act is working to soften the greatest economic downfall since the Great Depression and is laying ... ... middle of paper ... ... past problem which was gas prices, which have gone down significantly. The Recovery Act may not have sent out any physical checks, such as the 2008 Stimulus Package did, however it did reduce taxes which in return gave Americans more money in there pocket, which increased consumption, increasing GDP, helping the economy becoming more stabilized. In comparison both the 2008 Stimulus Package and the Recovery Act were both essentially expansionary fiscal policies, in which they wanted to to either increase government spending and lower taxes, the Recovery Act, or just lower taxes all together, the 2008 Stimulus Package. Both the 2008 Stimulus Package and the Recovery Act were both great moves in improving the economy by Bush and Obama. And while the Recovery Act may still be in affect, its progress is noticeable, and is improving our economy as it nears its completion.

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