The American Recovery and Reinvestment Act of 2009 Law Research Paper

The American Recovery and Reinvestment Act of 2009
Name: Mingyuan Chang
POL323
Date:11/10/2020
The American Recovery and Reinvestment Act of 2009
Economic recession is one of the challenging prospects for any nation. In 2009, the U.S. was indulged in an economic recession that threatened to cripple its vital industries, including manufacturing, banking, and real estate, among others. The government had to challenge the status and develop fast and efficient economic stimulation strategies. The American Recovery and Reinvestment Act of 2009 has been considered as the strategic input implemented by President Obama to steer economic stimulation after the 2008 economic depression. The American Recovery and Reinvestment Act of 2009 was subject to criticism, with a faction supporting the fact that it targeted creating and maintaining jobs in various strategic industries while another faction disapproved of its impacts on America’s taxpayer. This research will unearth the elements of debates about the American Recovery and Reinvestment Act of 2009 by analyzing its various prospects. The outputs of this analysis will be vital in understanding the Act in terms of its history, the path through the legislative process, arguments for and against it, modifications of the bill, and the voting process that approved the bill.
American Recovery and Reinvestment Act of 2009- from herein- referred to as the Act and/or ARRA that was passed into law on Feb 17, 2009, by the then-president Barack Obama. The Act was formulated as a way to address the 2008/2009 recession that threatened to sink the country into an economic depression. According to Klein and Staal (2017), the main reason for the adoption of the Act was the preservation and creation of jobs and the stabilization of state governments through affordable service delivery as ways to induce an economic recovery. The Act focused on various ways to improve the rate of employment and local production, including increasing local and state government funding, supporting the economically challenged, offering temporary tax relief to growing businesses (CBO, 2015). Some of the ministries and service departments addresses in the Act include education, health, energy, agriculture, security, environment, transport, and finance. Stimulating growth in the above industries was believed to be a valid turning point in reviving the economy that was fast losing its few available jobs and creating no jobs at that time of need.
Background
The period that followed the 2008 presidential elections was a challenging one for the U.S. The challenge stemmed deeper than the aftermath of a grueling indulgence in political campaigns. Before the 2008 presidential elections, the U.S. economy was struggling with a devastating economic depression. The challenge began in 2007 and peaked in 2008. By December 1, 2008, the nation stayed uncertain about the future of that recession. Concerns were lingering over the continuing loss of jobs and the death of other industries. The recession was at the core of the election campaigns. Having been elected, Obama’s focus was now geared towards reviving the economy.
President Bush had noted the grinding impacts of the recession almost a year before and instille...