Corrective Actions of the Great Recession
When did corrective actions begin?
When President Barack Obama was sworn in on January 20, 2009 he brought with him a plan and an execution of ideas to bring the United States of America out of the Great Recession. This did not take just one or two plans; it took hundreds of acts, reforms, bills, and advice from the Department of Treasury. The American Recovery and Reinvestment Act of 2009 is the umbrella to all of these plans to push the United States of America into the right direction. The American Recovery and Reinvestment Act of 2009 were signed into law by our President on February 17th 2009 and this is when the corrective action officially began. Its plan was to boost our economy to get our country out of the Great Recession. This Recovery Act was implemented by the Department of Treasury; it includes the Economic Recovery Act Payments, Community Development Financial Institutions, New Markets Tax Credit, Health Insurance Tax Credit Administration, Energy Grants in Lieu of Tax Credits, 1602 Program: Payments to States for Low-Income Housing Projects in Lieu of Low-Income Housing, Tax Credits, Native American CDFI Assistance, Tax Provision Oversight, and Tax Relief Programs. President Obama wanted the Department of Treasury to move and implement their programs with the Keynesian theory in mind. The Keynesian theory was used during the Great Depression in the 20th century to pull the United States out of this lowest economic period. The Keynesian theory is from an Economist named John Maynard Keynes; this theory says that if the people of the United States can’t fix itself than the government needs to come in and fix everything in the business cycle. This theory comes in the form of government spending and tax breaks to stimulate the economy, and government spending cuts and tax increase during a good economy, in order to help the inflation. The United States housing market correction and the mortgage crisis is the biggest contribution to the recession.
When President Barack Obama was sworn in on January 20, 2009 he brought with him a plan and an execution of ideas to bring the United States of America out of the Great Recession. This did not take just one or two plans; it took hundreds of acts, reforms, bills, and advice from the Department of Treasury. The American Recovery and Reinvestment Act of 2009 is the umbrella to all of these plans to push the United States of America into the right direction. The American Recovery and Reinvestment Act of 2009 were signed into law by our President on February 17th 2009 and this is when the corrective action officially began. Its plan was to boost our economy to get our country out of the Great Recession. This Recovery Act was implemented by the Department of Treasury; it includes the Economic Recovery Act Payments, Community Development Financial Institutions, New Markets Tax Credit, Health Insurance Tax Credit Administration, Energy Grants in Lieu of Tax Credits, 1602 Program: Payments to States for Low-Income Housing Projects in Lieu of Low-Income Housing, Tax Credits, Native American CDFI Assistance, Tax Provision Oversight, and Tax Relief Programs. President Obama wanted the Department of Treasury to move and implement their programs with the Keynesian theory in mind. The Keynesian theory was used during the Great Depression in the 20th century to pull the United States out of this lowest economic period. The Keynesian theory is from an Economist named John Maynard Keynes; this theory says that if the people of the United States can’t fix itself than the government needs to come in and fix everything in the business cycle. This theory comes in the form of government spending and tax breaks to stimulate the economy, and government spending cuts and tax increase during a good economy, in order to help the inflation. The United States housing market correction and the mortgage crisis is the biggest contribution to the recession.
References: Blumberg/Davidson, A. (n.d.). Obama Gives Keynes His First Real-World Test : NPR. Retrieved March 2013, from http://www.npr.org/templates/story/story.php?storyId=100018973 Board of Governors of the Federal Reserve System (2011, September) Murse, T. (2010, October). The Recession - When the Recession of the Late 2000s Began and Ended. Retrieved March 2013, from http://usgovinfo.about.com/od/moneymatters/a/When-Did-The-Great-Recession-End.htm The National Bureau of Economic Research (n.d.) Reuss, A. (2009). Keynes: Fiscal Policy and “Crowding Out” | Dollars & Sense. Retrieved March 2013, from http://www.dollarsandsense.org/archives/2009/0509reusskeynespartI.html U.S