The stimulus worked but Republicans just didn't want to admit it. The money went to investing in jobs and it worked, the stimulus is still creating jobs today 4 years later! We were in the middle of the Great Recession when this package was passed and we've been steadily climbing out of it since. Yes, it was a lot of money but it was money well spent.
Despite the current economic problems in the U.S., I believe that the recession would have been worse. At the moment, many autoworkers are back to work because of the stimulus and bailout provided to the U.S. automakers.
The 2009 stimulus package did not turn around unemployment in America. However, it did provide a big band-aid to the economy, when it was most needed. Millions of jobs were saved and many states were able to shore up their budgets for that year with the money. There was no good economic plan after the stimulus to turnaround hiring totally. But, the stimulus bill did prevent a depression and restarted growth in our GDP.
A lot of families were under a lot of pressure, due to the unemployment rate and the mortgage problems. Most families used the money to pay bills and buy things. This helped stimulate the economy. This money helped a lot of families pay the mortgage, so that they were not three months late, which would have started the foreclosure process.
Economic stimulus can be a great, when it is used to create jobs and provide a firm foundation for growth. The main things you have to use the money for are things the people currently need. Roads, power infrastructure, and energy efficiency programs are the keys to creating sustainable growth.
The stimulus plan of 2009 was not created in a vacuum. It was created in the wake of a melt-down of the financial establishment which was felt globally. In addition, the public faced high unemployment and the BP fiasco in the Gulf, both of which seriously shook public faith in "the system." We had the national embarrassment of invading Iraq with the goal of capturing terrorists that were actually in Afghanistan and securing non-existent WMD's. Added to these economic and psychic wounds was the burden of having to deal with the highest national debt we have ever had.
A nation does not recover from this kind of damage in a few months. We now have a stabilized financial community, although obscenely high executive salaries and unearned golden parachutes are still commonplace. We have stopped the bleeding of job loss and have begun to add jobs. We are giving up out goal of making every nation in the Islamic world over into our Jeffersonian Democracy image and will begin bringing troops home next July, which will stop the enormous flow of money going to fight these wars.
This is as close to successfully turning the recession around as we can get.
Without capital to fund operations businesses are not able to continue their operations and continue expansion. Without expansion workforces will shrink, resulting in firing of employees. This would be damaging to the economy on a larger scale as job loss creates less consumer expenditure and reinforces business closings. As seen in the Mexican peso crisis, government funds are required to temporarily prop up businesses.
People were losing everything,from their jobs, their savings, to their homes. The government needed to step in and handle this problem, the best way they know how. It is unfortunate that these problems happened but we are slowly recovering from the recession. The stimulus package was a way to get things moving again even if it was in a slower pace than what it was at one time.
As a direct result of this package there have been thousands of jobs created for those who have been out of work. In addition, the support for the banking and mortgage industries have kept them from certain collapse and ruin that could have been traumatic for America and the global economy as well.
The 2009 stimulus was planned poorly. It gave a large percentage of money to state and local governments to keep government employees. There was not enough infrastructure capital expenditures, where private businesses would have been hiring new employees to do the work.
The 2009 stimulus package provided relief by withholding less money from taxpayers. Economic plans set in place by President Bush were more effective at creating consumer confidence, because they sent out a lump sum check that encouraged taxpayers to spend these funds and boost the market. In addition, many of the positive effects attributed to the 2009 stimulus package can be explained by other economic factors.
As expensive as it was, the stimulus package did nothing to help combat recession. The way to do this is to fill taxpayer pockets with spending money, and not take from them through additional taxes that will be needed to pay for the frivolous spending President Obama did through the stimulus package to work on his pet projects.
The 2009 stimulus plan was a tepid response to the enormous economic problem facing the US in late 2008. The collapse in housing prices revealed that the financial system was heavily leveraged in products created and sold with the assumption that housing prices would not fall nationwide. It quickly became apparent that the financial system was rife with heavily leveraged products. The credit bubble which had fueled the economy had burst. Economists had models for such situations, and those models indicated that an appropriate government spending stimulus would be at least $1.2 trillion. Instead, the actual stimulus was much lower and was diluted by tax cuts going to people who were likely to save the cuts rather than spend them. As a result, the stimulus was only able to cushion the blow, leaving us with very high unemployment and a slow and tepid recovery.
I believe that the 2009 US economic stimulus package is not a good plan to combat the recession. Economies go up and down, but they are usually self-correcting. It is better to let the recession take its course and correct itself long-term than to put the country into more debt to fix a short-term problem. The US went from having an approximately 10 trillion dollar national debt in 2009 to having a nearly 13 trillion dollar national debt in 2010. It will take many generations to pay off this debt.
In addition to adding to the national debt problem, there is no proof that the stimulus funds were actually used for their intended purpose. There was not enough regulation and oversight of how the funds were used once they were appropriated to the various banks and big corporations.
I believe that that the economic stimulus package was one of the worst decisions ever made by our government. I do not believe that printing money that is not backed by the Gold Standard is an intelligent way to handle a recession. This could and ultimately will lead to hyperinflation and inflation. We had China and other countries buy up a large portion of our debt which is absolutely the wrong course for America in my opinion. This bill also allowed the interference of our government in the private sector and has destroyed our capitalistic foundation. I found this article many months ago and the truth of it almost made me cry. http://english.pravda.ru/opinion/columnists/107459-0/. Interesting read for people who love capitalism.
Aside from the fact that the stimulus hasn't performed to Obama's predictions based on available statistics, the biggest problem with the stimulus is that the people who could use the money most effectively are having problems getting the money. The major recipients of stimulus money should be business development initiatives either by private industry or local governments. I have heard complaints by developers both on the local and national news that the application process for the stimulus money is long and convoluted, and the actual allocation of funds once approved takes forever.
Commercial industries need a consistency to continue, their reliance on unnecessary products turned out to be the downfall in the end, when money was less scarce. Thus, even in a bad time, people need to consider what when who where and why to get business back up and running. A short term fix only gets a company by a month or two at best.
The 2009 US economic stimulus package was not the wisest choice by the US government. The billions of dollars spent on the creation of new jobs could have been more wisely used elsewhere for a more significant benefit to the United States population. An investment in a universal heath care system, for instance, would have made a more intelligent use of the funds.
Letting alcoholics run bars. Giving pedophiles children's television shows. Sending cats to run a charity for mice. Why would we want people who regularly move back and forth between the private sector and government write checks to each other as a way to get us out? Did the supreme court not just say that the people who get all the money they want with no strings from government get to give all the money they want to political candidates with no strings? I'd take away the money from both sides and lock them away in exactly the same jail. A few islands around the world are isolated enough. Or, give them a cruise ship and make certain that none of the people there could make landfall anywhere there is public plumbing? We'd do better without them. Both sides. Most of the U.S. population is employed by small business, we'd find a way to get things done if we could stick them on a Scientology boat and give the boat a good, hard kick off the peer.