American Recovery and Reinvestment Act of 2009

American Recovery and Reinvestment Act of 2009
U.S. Government · Public domain · source
Short title	American Recovery and Reinvestment Act of 2009
Long title	An Act to provide for an additional temporary program of assistance for certain individuals and to make technical corrections to Social Security Act and Rail Safety Improvement Act of 2008
Enacted by	111th United States Congress
Signed by	Barack Obama
Date signed	February 17, 2009

American Recovery and Reinvestment Act of 2009 was a stimulus package enacted by the United States Congress and signed into law by Barack Obama, the President of the United States, to address the Great Recession that began in 2007. The law was designed to stimulate the economy of the United States by investing in infrastructure, education, health care, and renewable energy, as well as providing tax relief to individuals and businesses, similar to the Economic Stimulus Act of 2008 signed by George W. Bush. The Act was influenced by the ideas of John Maynard Keynes and the experiences of Franklin D. Roosevelt's New Deal programs, including the Works Progress Administration and the Civilian Conservation Corps. The law also drew on the expertise of Ben Bernanke, Chairman of the Federal Reserve, and Christina Romer, Chair of the Council of Economic Advisers.

Background and legislative history

The American Recovery and Reinvestment Act of 2009 was introduced in the United States House of Representatives by David Obey, Chairman of the House Appropriations Committee, and in the United States Senate by Harry Reid, the Majority Leader of the United States Senate. The bill was debated and amended in both chambers, with input from Nancy Pelosi, the Speaker of the United States House of Representatives, and Mitch McConnell, the Minority Leader of the United States Senate. The final version of the bill was negotiated by Rahm Emanuel, the White House Chief of Staff, and Lawrence Summers, the Director of the National Economic Council, with the help of Timothy Geithner, the United States Secretary of the Treasury, and Peter Orszag, the Director of the Office of Management and Budget. The law was influenced by the experiences of other countries, including Canada, which had implemented a stimulus package in 2009, and Australia, which had introduced a stimulus package in 2008.

Provisions and components

The American Recovery and Reinvestment Act of 2009 included a wide range of provisions and components, such as investments in infrastructure projects, including highway construction and public transportation, as well as funding for education programs, including Head Start and Pell Grants. The law also provided tax relief to individuals and businesses, including a Making Work Pay tax credit and a Research and Development Tax Credit. Additionally, the law included funding for health care programs, including Medicaid and the State Children's Health Insurance Program, as well as investments in renewable energy projects, including wind power and solar power. The law was also influenced by the ideas of Al Gore, a Nobel Peace Prize laureate, and Van Jones, a Special Advisor for Green Jobs.

Implementation and oversight

The implementation and oversight of the American Recovery and Reinvestment Act of 2009 were carried out by a range of agencies and organizations, including the Recovery Accountability and Transparency Board, which was established by the law to oversee the use of stimulus funds. The Board was chaired by Earl Devaney, a former Inspector General of the United States Department of the Interior, and included representatives from the United States Department of Justice, the Federal Bureau of Investigation, and the General Services Administration. The law also established a range of reporting requirements, including the creation of a website, Recovery.gov, to track the use of stimulus funds and provide information to the public. The implementation of the law was also influenced by the experiences of other countries, including Germany, which had implemented a stimulus package in 2009, and France, which had introduced a stimulus package in 2008.

Economic impact and analysis

The economic impact of the American Recovery and Reinvestment Act of 2009 was the subject of extensive analysis and debate, with some economists, including Paul Krugman, a Nobel Memorial Prize in Economic Sciences laureate, and Joseph Stiglitz, a Nobel Memorial Prize in Economic Sciences laureate, arguing that the law had a positive impact on the economy of the United States. Other economists, including Milton Friedman, a Nobel Memorial Prize in Economic Sciences laureate, and Thomas Sowell, a Rose and Milton Friedman Senior Fellow on Public Policy at the Hoover Institution, argued that the law had a limited or negative impact on the economy. The law was also analyzed by a range of organizations, including the Congressional Budget Office, the International Monetary Fund, and the World Bank. The economic impact of the law was influenced by the experiences of other countries, including Japan, which had implemented a stimulus package in 1990s, and United Kingdom, which had introduced a stimulus package in 2008.

Political response and controversy

The American Recovery and Reinvestment Act of 2009 was the subject of extensive political debate and controversy, with some politicians, including John Boehner, the Minority Leader of the United States House of Representatives, and Mitch McConnell, the Minority Leader of the United States Senate, arguing that the law was too expensive and would increase the national debt of the United States. Other politicians, including Nancy Pelosi, the Speaker of the United States House of Representatives, and Harry Reid, the Majority Leader of the United States Senate, argued that the law was necessary to stimulate the economy and create jobs. The law was also influenced by the ideas of Ronald Reagan, the 40th President of the United States, and Bill Clinton, the 42nd President of the United States. The political response to the law was influenced by the experiences of other countries, including Australia, which had implemented a stimulus package in 2008, and Canada, which had introduced a stimulus package in 2009. Category:United States federal legislation