The American Recovery and Reinvestment Act (ARRA) of 2009 was introduced as a unique response for promoting economic recovery and growth. The Act included actions to modernize the national infrastructure, encourage energy independence, preserve and improve affordable health care, extend education opportunities, protect those with the greatest need, and provide tax relief.
Justification
Supporters who argued in support of the American Recovery and Reinvestment Act (ARRA) believed that the stimulus spending was insufficient to get the national economy from the recession. They argued that the Act was essential and sufficient for helped in reversing unemployment. The Act was meant to jumpstart the American economy by generating new jobs and replacing decreased consumer spending. Liberals believed that the Act would help meet the exacerbated needs that were ignored during the Bush administration ( Blinder, 2013) . The needs included the long-overdue restoration and rejuvenation of dangerous crumbling US infrastructure, including highways and roads. It also entailed expanding the unemployment benefits as well as raising the benefits by 25% weekly.
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Objections
Critics of the Obama Act argue that the stimulus was destined to fail, particularly because it entailed borrowing to obtain funds meant for use, also known as the deficit spending. Critics also argued that the negotiation focus or size of the incentive bill made the measure to be inadequate to pull the US out of the 2008-2009 recession. Lack of enough funds would cause Americans to borrow finances that would cause future generations to repay the unimaginable debts.
Another reason for arguing against the Act was that critics considered the stimulus package inadequate or wrongly focused. Despite the implementation of $800 billion, critics believed that it would be inadequate to fill the total impending economic gaps in the United States. The estimated budget was $2.9 trillion in the following three years.
References
Blinder, A. S. (2013). After the music stopped: The financial crisis, the response, and the work ahead (No. 79). Penguin Classics.
