The Economics Behind Obama's Stimulus Plan (and why it didn't work) | The Intelligent Right: "The Economics Behind Obama’s Stimulus Plan (and why it didn’t work)
November 22nd, 2010 Comments (2)
Obama’s Stimulus Package, formally known as The American Recovery and Reinvestment Act of 2009, has been the subject of much debate since it was introduced on January 26, 2009 through it’s enactment in February 2009 an it’s efficacy continues to be a hot-button issue to this day. The package itself is based on Keynesian Economics. It is based around the idea that government spending should be used to stimulate the economy in times of recession. Simply put: the stimulus package took government money and strategically injected it into specific markets in an attempt to bridge the gap in consumer spending, create jobs and promote growth in the markets receiving the aid. It did this by expanding unemployment benefits, giving money to social provisions, healthcare and infrastructure."