There were two so-called "stimulus" programs. One under President BUSH. The Economic Stimulus Act of 2008, The law provides for tax rebates to low- and middle-income U.S. taxpayers, tax incentives to stimulate business investment, and an increase in the limits imposed on mortgages eligible for purchase by government-sponsored enterprises (e.g., Fannie Mae and Freddie Mac). The total cost of this bill was projected at $152 billion for 2008. The 2nd under President OBAMA — the American Recovery and Reinvestment Act of 2009 or ARRA. The approximate cost of the economic stimulus package was estimated to be $787 billion at the time of passage. The primary objective for ARRA was to save and create jobs almost immediately. Secondary objectives were to provide temporary relief programs for those most impacted by the recession and invest in infrastructure, education, health, and ‘green’ energy. The Act also included many items not directly related to economic recovery. Was it successful? Depends on whom you ask, of course. Conservatives will say unemployment is near double-digits and growth is slow, so clearly it didn’t work. Liberals will say yes, unemployment is too high but that’s just a sign the stimulus wasn’t big enough. It worked when you think about how much higher unemployment would have been without it. And, come to think of it, we need more stimulus. Each side can find facts and models to fit its worldview. See the debate below.
Federal Spending Cutbacks Slow Recovery
div style="font-size:100%">Sharp Drop in Military, Stimulus Spending Take a Toll on Economic Rebound.
from The Wall Street Journal

Falling military spending and the end of federal stimulus programs are further slowing the already weak U.S. economic recovery.

In recent weeks, policy debate in Washington has turned to the looming "fiscal cliff," billions of dollars in spending cuts and tax increases set to take effect at the start of the new year. The Congressional Budget Office, Federal Reserve Chairman Ben Bernanke and others have warned that the cuts would tip the U.S. into recession early next year, and some economists have argued that the uncertainty generated by the debate could act as a drag on the economy long before ...

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