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President Obama 2009 Recovery Act: is it working?
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After the biggest financial crisis since the Great Depression, President Barack Obama says the U.S. is headed in the right direction, as the economy shows signs of growth.
At his weekly White House address, October 31, 2009, President Barack Obama says the American Recovery and Reinvestment Act (ARRA) of 2009 is working; an act in which he says has helped jumpstart the economy, after experiencing so many years of government and corporate abuse, which eventually led to the downfall of the American economy.
“The current economic crisis is the result of many years of irresponsibility, both in government and in the private sector,” President Obama said. “As we look toward the future, we must confront the many dimensions of this crisis, while laying the foundation for a new era of responsibility and transparency,” the White House transcript notes.
President Obama says he understands these are difficult times for so many American families, but he explained, last week showed actual progress that the economy is improving by way of economic growth. According to the third quarter report, the Gross Domestic Product (GDP), which shows how much the nation is producing, and how much families and businesses are earning grew for the first time in over a year, President Obama explained. In addition, he says the GDP, also grew twice as fast as it has in the previous two years.
“We will not create the jobs we need unless the economy is growing; that’s why this GDP report is a good sign,” President Obama explained. “We’ve acted aggressively to jumpstart credit for families and businesses, including small businesses, modifying mortgages to help hundreds of thousands of responsible homeowners keep their homes and help millions more sustain the value of their homes."
President Obama explained that the Recovery Act was designed to boost the economy by providing federal tax cuts, expansion of unemployment benefits, and through domestic spending in areas, such as healthcare, education, energy, and infrastructure.
"The Recovery Act is spurring demand through a tax cut for 95 percent of working families, and through assistance for seniors and those who have lost jobs – which not only helps folks hardest hit by the downturn," President Obama explained. "But also encourages the consumer spending that will help turn the economy around."
Since the $787 billion stimulus package was signed into law February 17, 2009, President Obama says over one million jobs have been saved or created. President Obama explained that his administration was able to save hundreds of thousands of jobs by closing state budget shortfalls, as a way to prevent layoffs of police officers, firefighters, and teachers. In addition, President Obama says hundreds of thousands of jobs were created by investing in roads, education, medical research, and through clean energy initiatives, as the White House transcript notes.
Prior to President Obama taking office, the United States had been in a recession since December 2007, but experienced a harder hit to the economy in September 2008 due to the Fannie Mae and Freddie Mac subprime mortgage and predatory lending practices, which caused a sudden drop in international trade, rising unemployment rates, and a slump in commodity prices, as the National Bureau of Economic Research reports. Further, the U.S. Bureau of Labor Statistics revealed, since the start of the recession in 2007, the number of unemployed persons increased from 7.6 million to 15.1 million, and the unemployment rate has doubled to 9.8 percent.
“For the economy we seek is one where folks who need a job can find one and incomes are rising again,” President Obama explained.” “The economy we seek is one where small businesses can flourish and entrepreneurs can get the capital they need to plant new seeds of growth -- one that’s built on a solid foundation, supporting growth that is strong, sustained, and broadly shared by middle class families across America. That is what we are working toward every single day. And we will not stop until we get there.”
President Obama admits, although economic growth is not the same as job growth, he says signs of the economy strengthening is a major turnaround for a country that not that long ago feared another Great Depression.
Click on link to follow the money trail:
http://www.recovery.gov/Pages/home.aspx
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http://www.flickr.com/photos/revolute/3212417547/
President Barack Obama talks about the Recovery Act and the GDP
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