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Saving AmericaLaura Rouse-DeVore MPA-630-3200 Managing Public Policy February 21, 2017Professor Artrina SturgesThe State of the Union in 2008The financial state of the United States in 2008 was very bleak. 2008 marked the beginning of a significant crash in the economic status of many countries worldwide. The United States was not immune to this economic crisis (“Recession of 2008,” 2016). In fact, many blamed the United States and Fannie Mae for launching this global economic crisis because of Fannie Mae’s engagement with several banks and poor loan investments (“Recession of 2008,” 2016). Because of the scrutiny in lending, many businesses were unable to secure financing, which, then, caused trouble for the businesses leading to increasing unemployment rates (“Recession of 2008,” 2016). Of course, increasing unemployment rates meant consumers did not have money to spend or they were unable to secure financing to allow them to purchase larger ticket items, such as mortgages and automobiles. This only served to compound the issues that the businesses were experiencing and create more economic problems for our country and for the world. Europe, China, and South America are just a few of the other continents and countries that found themselves struggling for solutions to the economic hardship they were experiencing in 2008 (“Recession of 2008,” 2016). The United States saw unemployment rates balloon to more than eight percent (“Recession of 2008,” 2016). It became apparent throughout 2008 that a large-scale solution was necessary to keep the United States economy from taking a deeper nose-dive than what it had already experienced. President Barack Obama, his advisors, and Congress worked together to develop a stimulus package to help preserve the United States economy. A Strategy to Save the American EconomyThe American Recovery and Reinvestment Act of 2009 (ARRA) was the result of President Obama and Congress seeking to find a crutch to help the limping economy regain some strength. President Obama signed and enacted the ARRA on February 17, 2009 (“The American Recovery and Reinvestment Act of 2009: Education Jobs and Reform,”?2009). This was the beginning of a significant uprising in the economic standing of the United States. The American Recovery and Reinvestment Act of 2009 had several pieces and directly impacted several different sectors, including education, health care, energy, and infrastructure (“The American Recovery and Reinvestment Act of 2009: Education Jobs and Reform,”?2009). The three major areas of spending that the ARRA called out focused on $288 billion tax in tax cuts, $224 billion to extend unemployment, health care, and education benefits, and $275 billion in additional federal contracts, loans, and grants intended to create jobs (Amadeo, 2017). Overall, the American Recovery and Reinvestment Act of 2009 allocated $787 billion in spending over three fiscal years (Amadeo, 2017). Perhaps one of the most direct benefits of the ARRA was that the US Government issued a series of tax rebates, most of which consisted of a few hundred dollars. These tax rebates were intended to advance consumer spending and help to stimulate the economy (Amadeo, 2017). The ARRA also included stimulus opportunities for small businesses by reducing the capital gains taxes and expanding lending opportunities. The Aftermath The undertaking of such a significant piece of legislation was truly meant to change the course and trajectory of the United States’ economic crisis and situation. The situation was so dire that the response from the federal government had to be swift and geared in a way that would change the course of history. Even though the economy contracted for the remainder of 2009, by 2010, the economy had expanded 2.5 percent (Amadeo, 2017). By the end of 2009, over 640, 329 jobs had been retained as a direct result of the American Recovery and Reinvestment Act of 2009 (Amadeo, 2017). These numbers fell somewhat short of initial projections, however, the numbers all remained positive in terms of slowing the downward spiral that the economy was heading in previously. In addition, the ARRA also had an impact on a global level by creating increased opportunity for international investment and stabilization of economies in countries that are heavily engaged in United States commerce. Although critics felt it was unsuccessful because it failed to meet all projections, it was very successful for the simple fact of how quickly it changed the direction of the economic status of the country. In addition, it created jobs, increased consumer spending, and expanded the economy in a short period of time. This met all the overarching goals of the policy development process and was responsive to the needs of the country. ConclusionThe turnaround that was facilitated by the American Recovery and Reinvestment Act of 2009 was significant on multiple levels. The most important thing that it did was to establish sustainability for the American economy. The sustainability meant that the United States economy was somewhat preserved, even if the economy remained in recession (Amadeo, 2017). The job creation stimulated by the ARRA added to the sustainability of the economy by ensuring increased consumer spending, decreasing the unemployment rates and, in turn, decreasing the unemployment expenditures. ARRA helped to sustain small businesses and provide greater opportunities financially for all Americans. The ARRA also met overarching goals of improving international relations and economic situations by stabilizing the American economy and ensuring posterity and continuity of trade and commerce. The success of the current United States economy is due to the significant steps taken with the American Recovery and Reinvestment Act of 2009 and the stabilization and confidence that breathed life into a failing economic situation in the United States in 2008. It is difficult to ascertain what the financial or economic state of America or the world would be had it not been for an insightful and discerning Administration who decided to think outside of the box and truly develop a policy that would have long-term impact and benefits globally. REFERENCESAmadeo, K.?(2017, February).?What was Obama's Stimulus Package?.?The Balance. Retrieved?from? Recovery and Reinvestment Act of 2009. (n.d.). In?. Retrieved from of 2008.?(2016, June).?Conservapedia. Retrieved?from? American Recovery and Reinvestment Act of 2009: Education Jobs and Reform.?(2009, February).?US Department of Education. Retrieved?from? ................
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