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Policy - Research Paper Example

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Table of Contents Abstract 2 Introduction 2 The American Recovery and Reinvestment Act 3 History of Policy 4 Evaluation 9 A Policy 14 Works Cited 15 Abstract The American Recovery and Reinvestment Act of 2009 (ARRA, Pub.L. 111-5) represented a determined fiscal policy maneuver to meet the economic regression that had begun to swiftly undermine the American economy in late 2008…
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Download file to see previous pages... Both of these policies, working in consort, and in spite of a polarizing political climate, did manage to turn the American economy around. However, it was because of the desperate political climate that the ARRA was made to suffer less than a full effect on the American economy. It could have done much more, but the damaging political climate refused to allow deeper systemic problems to be addressed. Introduction The UN International Labor Organization estimated that the recent global regression resulted in worldwide job losses at 50 million by the end of 2009 (Taylor and Weepapana, 2009). With demand of goods falling worldwide, global economic growth was expected to shrink by 2 percent, effecting emerging economics as far as in Eastern Europe and in mainland China. Taiwan saw its exports fall 42.9 percent. Unemployment in the United Kingdom which was 4.7 in 2000 and grew to 5.0 in 2008, reached 7.9 by December 2010. In the United States, the Bureau of Labor Statistics charted unemployment rates that varied between 4.1 and 5.0 percent 2000 through November 2005. These rates begin to worsen by September 2008, reaching 6.5 by October 2008 and the highest level of 10.0, 15.4 million people out of work, by November 2009. A total of 750,000 jobs was being lost per month in an economy that was contracting 6 percent annually (CEA). Clearly, economic policy had faltered worldwide and particularly in the United States. By December 2008, the National Bureau of Economic Research had finally declared the U.S. had been in a recession since December 2007. Growth in the fourth quarter of 2008 had shrunk to a negative 6.2%, the lowest since 1982. The American Recovery and Reinvestment Act Immediately after his election, President Barak Obama led the 111th United States Congress through a series of emergency measures. These measures capitalized to his signing into law, on February 17 2009, The American Recovery and Reinvestment Act of 2009 (ARRA, Pub.L. 111-5), referred to as the Stimulus or the Recovery Act. This $787 billion spending program consisted of $286 billion in tax cuts to stimulate the economy and expenditures for spending on infrastructure, State, revenue sharing, unemployment benefits, food stamps, and business and middle class tax cuts. Specifically the ARRA directed $88 billion for direct purchase of goods; $44 billion for infrastructure transfers to state and local governments; $215 billion for non-infrastructure transfers to state and local governments, accounting for such as public safety and education spending; $100 billion for direction transfers to persons in form of unemployment insurance benefits, and student loans; $18 billion to retirees; and tax cuts totaling $266 billion that covered business tax provisions and such as the first-time homebuyer tax credit (Berger and Gaffney, 2009). The ARRA funded many specific programs that sought to influence change in greenhouse technology, rapid transit, electronic medical health records among a large number of broad base initiatives. For education, the ARRA allocated $5 billion to the Department of Education to fund programs under the Race to the Top program that closed the achievement gap and improved student achievement. The DoE allowed successful programs to compete for grants from a $650 million fund that would enable them to ...Download file to see next pagesRead More
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