American Recovery Failure

The United States government needed to do something to help save its economy and help pull its country back out of recession since the consequences that this recession had on the United States were devastating and affected a countless amount of people. That is the reason why the 111th United States Congress in the month of February in the year 2009 passed the American Recovery and Reinvestment Act of 2009 that was signed into law by President Barack Obama on the date of February 17, 2009. ("American Recovery and Reinvestment Act of 2009", Wikipedia.org)The American Recovery and Reinvestment Act of 2009 was also commonly known as the Stimulus package or the Recovery Act of 2009. The reason why they passed the American Recovery and Reinvestment …show more content…
("American Recovery and Reinvestment Act", investopedia.com)The American Recovery and Reinvestment Act was set in motion as response to the weak economic state that faced the country. This act was initially created to stimulate its economy through corporate tax cuts, generosity in unemployment benefits, increased domestic spending and increased welfare funding ("American Recovery and Reinvestment Act", investopedia.com) and I personally believe that in my opinion the Act did accomplish its goals for a numerous amount of reasons.There many reasons why in my opinion the Act accomplished its goals and it 's mainly because the Act really did manage to get its economy back on trackand it also greatly help out the unemployed population of the United States that was affected by this …show more content…
Today, the country continues to recover from the financial turmoil of the recession. Unemployment still lags, interest rates are still at a record low and growth is slow but the housing market shows signs of an upturn. The U.S. government could’ve prevented the Great Recession of 2009 if they would’ve set in place specific standards for the banks to abide by. The idea to encourage and increase home ownership was very smart since there were many people that coupled home ownership with having a lot of money. Unfortunately, not many people were educated on how purchasing a home worked thus they didn’t understand that they could very well have a mortgage rather than paying rent. What the banks and the government failed to understand is they didn’t need the banks to be lenient with their underwriting standards to achieve their goal. If training programs were provided to educate potential home owners on the process of purchasing a home and government assistance programs were created specifically for this project to help assist with fees, down payments, finance rates, etc they still could’ve exceeded their goal. Instead, they practically gave away mortgages to just about anyone that wanted to purchase a home regardless of their pay, credit, and history. The buyers who benefited from the initial purchase should’ve known not to “bite