The 2009 reinvestment act was a stimulus pack which injected 787 billion dollars into the economy. The plan is focused on investing into health, education, infrastructure and renewable energy to create new jobs into the economy and hopefully bring America out of the recession. Though the multiplying effect of this plan is not completely clear and it is very hard to measure. Though today we can see that America is showing signs of recovery and many jobs have been created though many people say that the amount of money the government has invested is not enough relative to the size of the problem. Especially now people will probably spend less in fear of a further decline and so the multiplier effect of the injection will likely be smaller. In my opinion the government must spend allot more in order to have a larger impact on the economy and to raise animal spirits though I still think that this act is a step in the right direction. They have created many new jobs and invested in improving Americas infrastructure whilst creating jobs and increasing spending. It is estimated that the reinvestment act had increased the American GDP in 2012 by between 0.1 percent and 0.8 percent and decreased unemployment by between 0.1 percent and 0.6 percent in 2012. Though this does not sound this is a huge number of people put back to work and the effects of the reinvestment plan are still taking effect today.
Here are some articles, explanations and videos about the reinvestment plan:
Here are some articles, explanations and videos about the reinvestment plan:
Here is president Obama talking about the reinvestment act:
Here is the official government website showing where the money is being spent:
http://www.recovery.gov/arra/Pages/default.aspx
Finally here is an estimate on the effects of the reinvestment plan:
http://www.cbo.gov/publication/43945
http://www.recovery.gov/arra/Pages/default.aspx
Finally here is an estimate on the effects of the reinvestment plan:
http://www.cbo.gov/publication/43945