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Alessandro Volta
Week2Paper.docxRunning head: OBAMA 2009 ECONOMIC STIMULUS BILL
Introduction
The Obama 2009 Economic Stimulus Bill is also called the Recovery Act. It is a stimulus package enacted by Congress and President Obama in 2009. The recession period left server effects on the economy. The purpose of this bill was to take actions toward shielding the country from effects of the recession period and make sure that the economy was revived towards betterment. This bill aimed towards creating relief programs for people who have been affected by the recession period and make investments in education, infrastructure and the health sector.
How and why the Obama 2009 Economic Stimulus Bill in public policy Agenda?
This bill came into public policy after the great recession because of the effects from the recession period we had on the US economy. After taking office in 2009, President Obama was facing a global crisis of economics. In order to minimize this impact, the Obama’s administration and the Democratic Party devised a package of economic stimulus known as the Obama 2009 Economic Bill. The Obama’s administration believed this package will create jobs for more than three million people and provide tax cuts. They also believed that this package will stimulate important economic sectors for the United States and make local firms become more competitive internationally (Gerston 2010, pg. 47).
Analysis of the Policy
There is a division among economists about the policy because of the high spending, huge investment and tax cutting. Some of the economist disagrees with the strategy on huge investment and spending and others disagree about the US planning. In the current economic climate, it is important to increase the stimulatory expenditures and grave the downsides on the collapse of the economy. As the international economic and financial crises worsened, the idea of huge spending on stimulatory actions became popularity in other countries as well as in the United States (Gerston 2010, pg. 53). Most economists support this bill and has become an internal trigging factor for the policy. The leading UN economists in a UN conference held in December 2008 called for actions to coordinate the stimulus package over the leading official. The UN also placed emphasis on spending more money on liquidity for the credit market liquidity.
Two of the scholars from the conservative Heritage Foundation in a paper released in December 2008 argued the favor of reducing the government spending. They believed that the best medicine to cure the US economy would be reducing the government spending. The CFR adds that "It can be perverse because you stimulate something [i.e. an industry] that’s really pretty weak and should maybe fade," which means the government should put more money into businesses in order to stimulate the business after the disaster of the economy. The chairman of Obama's Council of Economic Advisers (Christina Romer), and a cash related professional, Jared Bernstein, who works for the operating environment for Vice President Joseph R. Biden, Jr., resolved the approach for wondering at the back of tax reductions in a PDF. They relied on charges for states and for obligation decreases are endorsed, given the earnestness of the modern economic weather (Gerston 2010, pg. 49).
Conclusion
In conclusion, there are some positive internal and external factors that have trigged the Obama 2009 Economic Stimulus Bill and some native internal triggers. For example, some of the economist disagrees with the strategy on huge investment and spending. There are others who doesn’t support the US planning while some economists believe that the government should be spending more on stimulus packages so that businesses and private sectors that were affected by the recession will have support.
References
Larry N. Gerston (2010). Public Policy Making, Third Edition, ME Sharpe, New York,
