President Barack Obama's $787 billion economic stimulus package has been criticized for not fixing the economy fast enough. By July 2009, over $179 billion was allocated to Federal agencies. Of that, $60 billion was spent. (Source: Recovery.gov)
When it was approved in February 2009, the CBO said it would spend $185 billion in 2009. The CBO projected these funds would increase GDP growth by 1.4% - 3.8% by the end of 2009. This does not mean GDP growth will be positive. The economy could remain in recession, defined as negative GDP growth. I fact, the CBO forecast GDP growth to be negative 3% for 2009. The plan would also prevent .9 - 2.3 million job losses. It is difficult to measure jobs which have not been lost.
The main purpose of the package was to prevent the re-emergence of the panic that gripped investors in 2008. It also aimed to restore trust in the finance industry by further limiting bonuses for senior executives for companies that received TARP funds.
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