StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Stimulus Package - Assignment Example

Cite this document
Summary
The paper "Stimulus Package" is an excellent example of an assignment on macro and microeconomics. The stimulus in simple terms can be referred to as an ‘x’ sum of money aimed to be spent by the government for economic recovery; as witnessed by America, one of the worst economic downturns after the Great Depression in the 1930s…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful

Extract of sample "Stimulus Package"

The paper "Stimulus Package" is an excellent example of an assignment on macro and microeconomics.The stimulus in simple terms can be referred to as an ‘x’ sum of money aimed to be spent by the government for economic recovery; as witnessed by America, one of the worst economic downturns after the Great Depression in the 1930s. Fundamentally, the aim of these stimulus packages is to revamp and rejuvenate the financial structure of economy and its banking system which is stifled under the weight of decreasing credits.

According to FOXNews, issuing a hefty stimulus package of $819 billion by Obama government was not considered appropriate by many in the face of such economic crises and thus, seemed wasteful. It was akin to mortgaging future generations to overcome present crisis. It was also seen as incapable of stimulating job growths. However a lot other applauded the move. Similarly, another report by NIGHTLY BUSINESS REPORT highlights that President of Elkhart, Indiana does not acknowledge the stimulus package to be rightful at a time when unemployment has tripled; to which Mr.

Obama replied that delays and procrastination would further worsen the condition. A news report by BBC News describes the stimulus package as not an instant cure to the crises and that the government would give an account of the money spent under this package. BBC news also reports the haste of the democrats to pass the stimulus package which was easy after winning the elections. A report by CNN illustrates the speech of Mr. Obama urging to hurry the passage of bill for stimulus package which would inadvertently lead to infrastructure developments, tax benefits as well as benefits to college students along with reiterating government accountability.

Nevertheless, the article also mentions a viewpoint which condemns the idea of borrowing and spending instead of saving money during these hard times. It is very important to consider the pros and cons of going ahead with a huge amount of stimulus package. Stimulus Package has been well criticized as wasteful expenditure, that the benefits of tax cuts would largely go to already economically sound class of people, that the money might be used for imports and be useless for stimulating the domestic economy and instead ship the money out of home country but, what has not been considered is that it will provide huge tax rebates to individuals of middle class, low income retirees and military men, it will help the college students with educational fund, stimulate spending and create competitive business environment and not to forget the mobilization of financial sector which has been majorly affected.

With so much to gain, the onus lies on the control body which is The Government. The efficiency with which they execute the package and keep an account of the spending incurred under it so as to monitor and check the process is vital because once the package is passed and becomes a law, it would yield gradual results and a long term view of maintaining and following up of its progress is essential. The risks of this project being a failure are very high and so are the benefits. It cannot be argued whether or not a stimulus package as high as these would stand the test.

The bone of contention is whether the government in place would show competence enough to handle its implementation and execution. World over, governments are trying to re-construct their economies. An important consideration for them would be to try and spend more on state construction projects like schools, highways, and bridges etc. which would help on a local level and provide employment to the poor worker class who have lost jobs due to the subprime crisis. Stimulus package is a tool and its correct application would determine its success.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Stimulus Package Assignment Example | Topics and Well Written Essays - 614 words, n.d.)
Stimulus Package Assignment Example | Topics and Well Written Essays - 614 words. https://studentshare.org/macro-microeconomics/2027155-critque
(Stimulus Package Assignment Example | Topics and Well Written Essays - 614 Words)
Stimulus Package Assignment Example | Topics and Well Written Essays - 614 Words. https://studentshare.org/macro-microeconomics/2027155-critque.
“Stimulus Package Assignment Example | Topics and Well Written Essays - 614 Words”. https://studentshare.org/macro-microeconomics/2027155-critque.
  • Cited: 0 times

CHECK THESE SAMPLES OF Stimulus Package

Growth of the National Economy Analysis

The $ 787 billion Stimulus Package was designed to jumpstart the economy and help in saving millions of jobs.... The $ 787 billion Stimulus Package was designed to jumpstart the economy and help in saving millions of jobs.... he leading economist was of the opinion that the biggest challenge that faced the Obama administration was the softening of recession, the Stimulus Package that was put in place was not enough to create the impact, it only led to a ballooning of the national debt....
10 Pages (2500 words) Assignment

Comparative Advantage in a Changing Global Economy

This implies that the $ 9,500 is spent as a Stimulus Package.... In the latter case, the government will need a Stimulus Package of $ 23,000 to sustain this level of GDP.... The Stimulus Package, in this case, is less than the change in income level since the government creates more employment opportunities while retaining the previous level.... An increase in stimulus and investment implies open opportunities for employment within the economy hence increasing level of income....
4 Pages (1000 words) Assignment

The Impacts of the Global Financial Crisis on the Global Financial System

… The paper "The Impacts of the Global Financial Crisis on the Global Financial System" is a great example of a micro and macroeconomic essay.... nbsp;The global financial crisis was an indication of the interconnectedness of global economies.... The first indications of financial market distress emerged in the middle of 2007....
7 Pages (1750 words) Essay

Introduction to Microeconomics

… The paper "Introduction to Microeconomics" is a great example of an assignment on macro and microeconomics.... Domestic savings for a particular country gets determined by a variety of factors, including demographic characteristics, time preferences, and income distribution.... The current account is the difference between domestic savings and investments....
8 Pages (2000 words) Assignment

The Fallout from the Global Financial Crisis

… The paper "The Fallout from the Global Financial Crisis" is an outstanding example of an essay on macro and microeconomics.... The financial crisis globally started in mid-2007.... Stock markets in many countries fell by significant amounts and many financial institutions collapsed or had to be bought out....
8 Pages (2000 words) Essay

Impact of Quantitative Easing on Money Market and Interest Rate

… The paper "Impact of Quantitative Easing on Money Market and Interest Rate" is an outstanding example of a micro and macroeconomic assignment.... This is a technique utilized by central banks or the Federal Reserve banks in lowering long term interest rates through the creation of demand for treasury bonds or notes or mortgage-backed securities....
7 Pages (1750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us