When it comes to the Keynesian model of macroeconomics, this model was first introduced to the world by a British economist named John Maynard Keynes. This model of economics stressed about how in the short-run, and especially during a recession, economic output is strongly influenced by aggregate demand. Another ginormous factor to this model of economics would be that Keynesians don’t believe in self-adjustment. They believe that in order for the market to be able to come out of a recession the government needs to jump and make drastic changes in order for the economy to be able to function normally again. John Maynard actually denied a claim from the classical model that stated “markets automatically solve economic problems”, he ended up
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In an effort to stimulate the economy the Obama administration passed and implemented The American Recovery and Reinvestment Act. In my opinion the ARRA worked to a certain degree and kept the country from falling into a depression. If you look at the GDP from the time ARRA was implemented until present time the growth has been steady. The GDP increased roughly from about 14,700 billion in chained dollars 2009 to 16,500 billion as reflected in the October 2016 data. The second area that supports my belief that the American Recovery and Reinvestment Act was a success is the positive trend in the unemployment rate. At the time ARRA was implemented the unemployment rate was approximately 8.7%. The unemployment rate as of October 2016 is 4.9% thus supporting another positive outcome of ARRA. It is my belief that ARRA is a success, however it still has a long way to go. The reason for this statement is because even though certain areas of the stimulus have shown positive outcomes we are falling short on the Civilian Labor Force Participation Rate. The bottom line is in February of 2009the Civilian Participation Rate was 65.8% and in September of 2016 the rate was 62.9%. We need the creation of more jobs. So even though I view the stimulus as a success, I don 't believe it is the cure all
In an effort to stimulate the economy the Obama administration passed and implemented The American Recovery and Reinvestment Act. In my opinion the ARRA worked to a certain degree and kept the country from falling into a depression. If you look at the GDP from the time ARRA was implemented until present time the growth has been steady. The GDP increased roughly from about 14,700 billion in chained dollars 2009 to 16,500 billion as reflected in the October 2016 data. The second area that supports my belief that the American Recovery and Reinvestment Act was a success is the positive trend in the unemployment rate. At the time ARRA was implemented the unemployment rate was approximately 8.7%. The unemployment rate as of October 2016 is 4.9% thus supporting another positive outcome of ARRA. It is my belief that ARRA is a success, however it still has a long way to go. The reason for this statement is because even though certain areas of the stimulus have shown positive outcomes we are falling short on the Civilian Labor Force Participation Rate. The bottom line is in February of 2009the Civilian Participation Rate was 65.8% and in September of 2016 the rate was 62.9%. We need the creation of more jobs. So even though I view the stimulus as a success, I don 't believe it is the cure all