The Recovery Act declared by President Obama’s administration was the reaction on 9 percent of unemployment in the United States indicated during the last decade (“Does Stimulus Spending Work?” 2). One of the possible solutions was to implement stimulus spending equal to the $447 billion bill which was supposed to be spent on schools modernization, improvement of transportation infrastructure, and funding teachers in local communities (“Does Stimulus Spending Work?” 2). Stimulus spending was highly criticized for its doubtful effectiveness to create job places and boost the national economy.
According to Robert Barro, a Harvard economist, financial transfers can be effective only when additional economic and social factors are taken into account
According to Robert Barro, a Harvard economist, financial transfers can be effective only when additional economic and social factors are taken into account