American Recovery and Reinvestment Act of 2009
Write after the Midterm Election: See American Recovery and Reinvestment Act of 2009
Shuming Cao
PART 1: INTRODUCTION It seems that the midterm election has judged for Present Obama and the Democratic Party by their activities during the last two years. The American Recovery and Reinvestment Act of 2009 is the main policy of Present Obama’s administration to face the financial crisis so that the Act should afford a lot of duties for the low approval rate of Present Obama and the Democratic Party in the midterm election. The paper will introduce the background and main context of the American Recovery and Reinvestment Act of 2009 and put emphasis on the evaluation of the Act.
PART 2: BACKGROUND OF THE ACT At the beginning of 2008, many people believed that the U.S. recession had begun. Financial market turbulence indicated that the crisis would not be mild and brief. Alan Greenspan, ex-Chairman of the Federal Reserve, stated in March 2008 that the financial crisis in the United States was likely to be judged as the harshest since the end of World War II.
During the weekend of September 13–14 in 2008, Lehman Brothers declared bankruptcy after failing to find a buyer; Bank of America agreed to purchase Merrill Lynch; American International Group-the leader of world insurance and finance corporation, sought a bridge loan from the Federal Reserve. The economic data of 2008 was not optimistic. According to the report issued by the United States Department of Labor, the unemployment rate rose from 4.9% in January to 6.2% in September, which reaching the highest level in recent five years. According to the report issued by the United States Department of Commerce, the first four seasonal real GDP percent changed in 2008 compared with the preceding period were --0.7, 0.6, -4.0, and -6.8. These data announced that the economic crisis was coming. In Oct 3 of 2008, President Bush signed the Emergency Economic Stabilization Act of 2008,
Shuming Cao
PART 1: INTRODUCTION It seems that the midterm election has judged for Present Obama and the Democratic Party by their activities during the last two years. The American Recovery and Reinvestment Act of 2009 is the main policy of Present Obama’s administration to face the financial crisis so that the Act should afford a lot of duties for the low approval rate of Present Obama and the Democratic Party in the midterm election. The paper will introduce the background and main context of the American Recovery and Reinvestment Act of 2009 and put emphasis on the evaluation of the Act.
PART 2: BACKGROUND OF THE ACT At the beginning of 2008, many people believed that the U.S. recession had begun. Financial market turbulence indicated that the crisis would not be mild and brief. Alan Greenspan, ex-Chairman of the Federal Reserve, stated in March 2008 that the financial crisis in the United States was likely to be judged as the harshest since the end of World War II.
During the weekend of September 13–14 in 2008, Lehman Brothers declared bankruptcy after failing to find a buyer; Bank of America agreed to purchase Merrill Lynch; American International Group-the leader of world insurance and finance corporation, sought a bridge loan from the Federal Reserve. The economic data of 2008 was not optimistic. According to the report issued by the United States Department of Labor, the unemployment rate rose from 4.9% in January to 6.2% in September, which reaching the highest level in recent five years. According to the report issued by the United States Department of Commerce, the first four seasonal real GDP percent changed in 2008 compared with the preceding period were --0.7, 0.6, -4.0, and -6.8. These data announced that the economic crisis was coming. In Oct 3 of 2008, President Bush signed the Emergency Economic Stabilization Act of 2008,