Obama Stimulus why was this created?
With the current political scenario, issues pertaining to women’s ovaries and whether there is such a thing as “legitimate” rape or not is the highlight of the news and headlines right now. But when the voting day is drawing nearer and nearer the focus of the people is slowly shifting from social to economic issues and some issues like the American Recovery and Investment Act (ARRA) of 2009 that was approved by congress and signed into law by President Barack Obama are once again being talked about.
ARRA or sometimes more commonly known as Obama’s Stimulus Package or referred to as the Obama Economic Stimulus is now at the heart of this debate. Republicans and Democrats it seems are in a huge disagreement whether this government stimulus package had a positive or negative impact on the economy. Currently the president is urging the public to push congress to sign his multi-billion dollar stimulus plan. The current program aims to help homeowners expand their mortgages and a proposal to give tax breaks to small business owners if they hire more workers and helping veterans find jobs. Companies that are heading for greener programs and projects are also getting an extension of tax credits. The total computation of the President’s proposed programs can cost up to $34.7 billion. This number is already part of a $447 billion package which Congress has been trying to resist.
A lot of people are wondering why this Obama stimulus package was created. Its aim was to instill confidence in a then already ailing economy which was spiraling down quite fast. One of the stimulus’ plan was to further limit or put a cap on bonuses given to senior executives whose companies were receiving TARP funds. By doing this it’s aim was to restore trust in the finance industry.
The tax rebates given to the people was supposedly going to encourage more consumer spending.
But since many people were not aware that they got a tax rebate because it showed up as less tax withholding, many experts are doubtful that this indeed helped in this particular area.
The most successful area was public works construction which had retained or added 3 million jobs.
If economic indicators are to be reviewed, the whole Economic Stimulus package proved to be a success.
According to the data gathered before the ARRA was signed Q1 GDP was at -6.4% and now it is at -4.9% and since a lot of were started in 2009 presumably inspired by the Obama Stimulus package there is no doubt that people got the confidence boost that they needed hence contributing to a much stronger economy.