American Recovery and Reinvestment Act - Explained
What is the American Recovery and Reinvestment Act?
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Table of ContentsWhat is the American Recovery And Reinvestment Act?What is included in the American Recovery And Reinvestment Act?Objectives of the American Recovery and Reinvestment ActOpinions on the Efficacy of the American Recovery and Reinvestment ActAcademics Research on American Recovery And Reinvestment Act
What is the American Recovery And Reinvestment Act?
The American Recovery and Reinvestment Act (ARRA) of 2009 is a federal law passed by the U.S Congress to provide relief to American families after the Great Recession of 2008. ARRA is otherwise called the Recovery Act, Obama Stimulus and the stimulus package of 2009. This law was signed into law by President Barrack Obama in 2009. The American Recovery and Reinvestment Act of 2009 was passed to stimulate economic recovery in the United States. This law was designed to improve health care, education, and provide infrastructure for American families.
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What is included in the American Recovery And Reinvestment Act?
ARRA is a law passed as a response to the Great Depression of 2008. This law provided tax relief, basic infrastructures, and amenities for families in the U.S. ARRA as federal law was also passed to aid the recovery of jobs lost during the Great Depression and create more employment for American citizens. The American Recovery and Reinvestment Act (ARRA) was signed into law on February 17, 2019. When signed into law by President Obama, the Act was to disburse $787 billion as of relief to American citizens. This amount was intended to compensate Americans for job losses and other financial hardships encountered during the recessional period.
Objectives of the American Recovery and Reinvestment Act
There are many initiatives and objectives that were intended for the American Recovery and Reinvestment Act (ARRA) of 2009 to achieve. The major objectives of ARRA include;
- The Act was designed to disburse about $787 billion to American families in form of tax reliefs, provision of infrastructure, quality health care, quality education, and other recovery plans.
- Provision of tax reliefs for families such as offering deductions of family taxes up to $800.
- The act allocated up to $87 as medical aid to states as a way of aiding medical recovery in these states.
- Over $100 billion was allocated for education while over $80 billion was provided for infrastructure projects.
Opinions on the Efficacy of the American Recovery and Reinvestment Act
The American Recovery and Reinvestment Act (ARRA) of 2009 received different reactions from different quarters, this was a mix of both positive and negative reactions. While the supporters of the Act clamored that stimulus spending was not enough for economic recovery which created the need for ARRA, opponents of ARRA opined that too much government spending will be largely inefficient due to the bureaucratic tendencies of government offices. Economists were also pitched in different positions when it comes to the efficacy ARRA, however, the effects of the Act are largely noticeable as the eco