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Essay / Government recovery - 1711
In the current economic period, people have lost their jobs. People have lost confidence in the economy as the value of their money continues to fall. Businesses fail everywhere due to lack of trust in the system. Banks closed their doors due to the large number of people unable to repay their loans, leaving them without funds. The auto industry is bankrupt because people can't afford the new cars Detroit produces. Confidence in the United States economic system is very low. How can the country recover from this economic recession? Some economists would say the government should step in to save the situation by injecting money into the system. President Obama signed a massive stimulus bill to try to turn around the economy. The question is, did this bill actually help or is it just a waste of the American taxpayer's hard-earned money? Did the economy recover because of the bill, or would it have recovered just fine on its own? Finally, are the provisions of the bill actually good for the general public, or is it simply a waste of taxpayer dollars on wasteful projects and programs? These are questions that must be answered to get to the heart of one of the most expensive pieces of legislation in U.S. history. The goal of the economic recovery plan is to improve the economic health of the United States. According to Keynesian economic theory, an increase in government spending should increase the country's GDP. This is the main objective of the recovery plan. The question is, how much is this package expected to improve the economy? According to Macronomic Advisers (a forecasting company), GDP is expected to increase by 3.2%, while unemployment is expected to fall by 1.1%, a...... middle of paper ....... David Haugen and Susan Musser. Detroit: Greenhaven Press, 2011. Opposing Viewpoints Resource Center. Gale of wind. Internet. April 25, 2011Lindsey, Lawrence B. “Did the Stimulus Stimulate? The weekly standard. The Weekly Standard LLC. August 16, 2010. The web. April 25, 2011 Charles E. Grassley. “The stimulus bill will increase the federal deficit without fixing the economy.” At issue: the federal budget deficit. Ed. Susan Hunnicutt. Detroit: Greenhaven Press, 2010. Opposing Viewpoints Resource Center. Gale of wind. Internet. April 28, 2011 Page, Benjamin and Felix Reichling. “ARRA Estimated Impact on Employment and Economic Production from October 2010 to December 2010.” Blog of the Director of the Congressional Budget Office. Congressional Budget Office. February 23, 2011. The web. May 2, 2011. Chenn, Menzie. “The allocation of recovery funds. » Ecobrowser. Ecobrowser. April 20, 2009. the web. May 4 2011.