The US Fiscal Deficit Stimulus Plan

Paper Info
Page count 2
Word count 577
Read time 3 min
Subject Government
Type Essay
Language 🇺🇸 US

At the time when the US came under the administration of Obama, the economic well-being of the country was in an extremely deplorable state of a large-scale crisis. A few months before the election, the brewing crisis reached its peak, affecting the American finances, the stock market, and all the commercial activities of the country. Urgent and thoughtful measures were required from the new-coming administration. These measures were supposed to stop the uncontrolled decline of the state’s economy primarily.

Obama presented a solution by implementing a legal act, called the “American Recovery and Reinvestment Act of 2009”. Osho et. al. (2020) mentioned that the document provided the allocation of seven hundred and eighty-seven billion in the main areas – support for socially vulnerable citizens, consumption stimulation by social support programs, and making a steady ground for further recovery. Most of the allocated budget was aimed at the support of citizens with low levels of quality of life. As a part of the stimulus program, the administration planned a direct federal expenditures program for the development of healthcare and education. Obama affirmed the value of these changes: “A spiraling remedy for long-term healthcare costs and limits on availability of coverage that disproportionately harmed low-income and minority Americans was worth the sort-term political costs” (as cited in Lester, 2019, p. 194). Moreover, this program allowed the Obama administration to implement an important healthcare reform, providing the US citizens with high-quality medical care on a long-term basis. These mechanisms reduced the budget burden in the field of healthcare and increased the availability of medical services for citizens, potentially increasing their quality.

New deductions from the income tax base were implemented for middle-class citizens. However, this program was not the main element of the stimulus. The whole plan was based on financing several areas of commercial activity, as said by Juergensmeyer and Faessel (2018), “Recessions are also a good time to build needed infrastructure or engage in other good investments, properly funded by borrowing” (p. 330). The fiscal crisis spending became a burden for the US financial system. However, spending all the resources of the state into overcoming the crisis, President Obama assumed full responsibility for the program’s success or failure.

After less than eight years of the Obama administration not only stopped the decline of the economy and led to its recovery but managed to create a foundation for further long-term development. The US GDP clearly indicates the positive improvements that occurred with Obama’s administration. As stated by Osho, et al., (2020) “The GDP of the United States is currently at Baseline level, but according to the predictions outlined in graph as the act is implement the GDP will reach its potential over a ten-year time span” (p. 23). As a result of reforms and a balanced, rational approach to budget spending, the growth of public debt slowed, especially in relation to GPD. Nowadays, there is every reason to argue the threat of stability loss of the American capital market has decreased to a safe level.

In conclusion, Obama came to administration in the time, when the US was on the path of a severe downturn. However, President Obama managed to implement an anti-crisis program that returned the stability of the state. Moreover, a healthcare reform was introduced which changed the whole American medical system. The majority of US citizens became wealthier, business risks decreased, and the economic activity continued to grow. The electoral expectations of the voters were justified.

References

Juergensmeyer M., & Faessel V. (2018). The Oxford handbook of global studies. Oxford University Press.

Lester, E. (2019). Liberalism and leadership: The irony of Arthur Schlesinger, Jr. Oxford University Press.

Osho, S. G., Adams M., Coleman Q., & Uwakonye M. (2020). Stimulus Coronavirus Aid, Relief and Economic Security Act: Comparative analysis of President Roosevelt’s New Deal Programs and President Obama’s American Recovery and Reinvestment Act of 2009. Journal of Social and Development Sciences, 11(1), pp. 19-26.

Cite this paper

Reference

EduRaven. (2022, June 14). The US Fiscal Deficit Stimulus Plan. Retrieved from https://eduraven.com/the-us-fiscal-deficit-stimulus-plan/

Reference

EduRaven. (2022, June 14). The US Fiscal Deficit Stimulus Plan. https://eduraven.com/the-us-fiscal-deficit-stimulus-plan/

Work Cited

"The US Fiscal Deficit Stimulus Plan." EduRaven, 14 June 2022, eduraven.com/the-us-fiscal-deficit-stimulus-plan/.

References

EduRaven. (2022) 'The US Fiscal Deficit Stimulus Plan'. 14 June.

References

EduRaven. 2022. "The US Fiscal Deficit Stimulus Plan." June 14, 2022. https://eduraven.com/the-us-fiscal-deficit-stimulus-plan/.

1. EduRaven. "The US Fiscal Deficit Stimulus Plan." June 14, 2022. https://eduraven.com/the-us-fiscal-deficit-stimulus-plan/.


Bibliography


EduRaven. "The US Fiscal Deficit Stimulus Plan." June 14, 2022. https://eduraven.com/the-us-fiscal-deficit-stimulus-plan/.

References

EduRaven. 2022. "The US Fiscal Deficit Stimulus Plan." June 14, 2022. https://eduraven.com/the-us-fiscal-deficit-stimulus-plan/.

1. EduRaven. "The US Fiscal Deficit Stimulus Plan." June 14, 2022. https://eduraven.com/the-us-fiscal-deficit-stimulus-plan/.


Bibliography


EduRaven. "The US Fiscal Deficit Stimulus Plan." June 14, 2022. https://eduraven.com/the-us-fiscal-deficit-stimulus-plan/.