American Recovery and Reinvestment Act 2009
Obama Economic Stimulus Plan: Answer to the Economic Meltdown?
Feb 18, 2009
The opinions of politicians, economists and public figures have been varied and plentiful on the subject of the country's economic problems. While not in agreement on the solution, most have acknowledged that something has to be done by the government to revive the U.S. economy.
In an effort to stem the country’s downward financial spiral, the American Recovery and Reinvestment Act passed the Senate and House and was enacted into law by President Obama's signature on February 17, 2009. The Senate passed the bill 60-38 with the 60 votes representing all Democrats and Independents and 3 Republicans. The House voted 246 to 183, all 246 votes Democrats, with the nay vote consisting of 176 Republicans and 7 Democrats.
Economic Recovery Plan: Jobs, Baby, Jobs?
Job creation is a large component of this legislation and at the front of every elected official’s mind today.
Per the U.S. Bureau of Labor Statistics, the unemployment rate reached 7.6% in January 2009, compared to 4.3% in 1999. As stated on their website: “In December (2008), there were 2,275 mass layoff actions, involving 226,117 workers.” and further, “For all of 2008, on a not seasonally adjusted basis, the total numbers of mass layoff events at 21,137, and initial claims at 2,130,220, reached their highest annual levels since 2001 and 2002, respectively.” (Mass layoff is defined as at least 50 employees from a single employer.)
During his election campaign, President Obama promised accountability and transparency by his administration, therefore, the Recovery.gov website was created. This website contains a U.S. map in their “impact” section that estimates the effect this legislation will have on jobs, state by state, in the next two years.
What Is In the Economic Recovery Bill? How Will the Stimulus Money Be Spent?
If you would like to read the bill in its entirety, a link is provided on the Recovery.gov website. It is lengthy, so a cup of coffee may be advised! If so inclined, comments may be left in regard to its contents.
The Recovery website summarizes the bill by outlining how the $787 Billion will be distributed in each category. It states, “The American Recovery and Reinvestment Act targets investments towards key areas that will save or create good jobs immediately, while also laying the groundwork for long-term economic growth”.
How Can Citizens Track Tax Stimulus Money That is Being Spent From the Recovery Act?
The new administration is in the process of establishing a team of managers to implement and oversee the program. Every U.S. citizen who has access to a computer can track the money spent and jobs created, as well as add their comments and questions. A FAQs has already been established on the website.
How Will the Stimulus Money Be Handled?
As outlined by the government website, the money will be distributed by Federal Agencies such as the Departments of Education, Health and Human Services, and Energy. Once money has been awarded, spending and performance data will be reported and posted to the website.
Further, as outlined through a memorandum from Rham Emanuel, Chief of Staff, the administraton mandates rigorous internal controls and oversight mechanisms for each Federal Agency involved in order to meet transparency promises. Also mandatory is establishment of processes to ensure an accelerated implementation of the recovery legislation.
Will the Stimulus Plan Work?
That is the $787 Billion Dollar question! Every U.S. citizen has a stake in this legislation’s success and now has online access to the unfolding process. Recovery will take time, dramatic action, the power of collective positive thinking and billions of tax dollars. No one has been able to provide a guaranteed solution for this unprecedented situation. Only time will tell.
For information on the Obama Home Affordability Plan click here: Home Affordability Plan.
Resources:
US Bureau of Labor Statistics
Recovery.gov
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