The essay is on the stimulus package (2009) and its breakdown per state. The Stimulus package was based on Keynesian economics that argued that during periods of economic hardship, the government should step in by increasing public spending which would in turn stimulate more private spending by giving people the money to do so and by creating a large flow of money in the economy. Doing so would also save form further deterioration. The money distributed to each state went to: aid for the poor and unemployed; Infrastructure; health care; helping each state with their budget; education, homeland security; and law enforcement.
¶ … 2009 Stimulus Package. The stimulus was $787 billion. The questions: What is the breakdown of spending allocated by state? Where did the money go?
The 2009 Stimulus Package
The American Recovery and Reinvestment Act of 2009, (ARRA) otherwise known as the Stimulus package was signed in 2009 by Obama as reaction to the recession and designed to create jobs as soon as possible and to help those hit by the recession. Other objectives were to provide temporary relief for those impacted by the recession and to create solutions for infrastructure, education, health, and 'green' energy. The approximate cost of the package at the time of passing was $787 billion. This was later revised to $831 billion between 2009 and 2019 (CBO (2012)
The Stimulus package was based on Keynesian economics that argued that during periods of economic hardship, the government should step in by increasing public spending which would in turn stimulate more private spending by giving people the money to do so and by creating a large flow of money in the economy. Doing so would also save form further deterioration.
The money distributed to each state went to: aid for the poor and unemployed; Infrastructure; health care; helping each state with their budget; education, homeland security; and law enforcement.
The breakdown is shown below.
The independent variable is the 2009 Stimulus Package. The dependent variable is the way this Package stimulated factors of the economy.
The breakdown
1. Aid to poor and unemployed
a. $40 billion to provide extended unemployment benefits through December and to increase this by $25 per week.
b. $20 billion is contributed to additional food stamps and to increase this by %14
c. $3 billion is allocated for temporary welfare benefits.
2. Direct cash payments
$14 billion is allocated for one-time $250 payments to Social Security recipients, poor people on Supplemental Security Income, and veterans receiving disability and pensions.
3. Infrastructure
a. $46 billion for transportation projects, (which includes $27 billion for highway and bridge construction and repair; $8.4 billion for mass transit; $8 billion for construction of high-speed railways and $1.3 billion for Amtrak)
b. $4.6 billion that is tagged for the Army Corps of Engineers
c. $4 billion tagged for public housing improvements
d. $6.4 billion that is distributed for clean- and drinking-water projects
e. $7 billion for brining broadband Internet service to underserved areas.
4. Health care
a. $21 billion as stipulated by the COBRA program to provide a 60% subsidy of health care insurance premiums for unemployed individuals
b. $87 billion to help each state with Medicaid
c. $19 billion to modernize health information technology systems
d. $10 billion for health research and improvement of NIH facilities
5. State block grants
$5 billion to each state to help it defray its budget costs.
6. Education
a. $54 billion in state fiscal relief to prevent cuts in state aid to school districts, with up to $10 billion for school repair;
b. $26 billion to school districts to fund special education and the No Child Left Behind law for students in K-12;
c. $17 billion to boost the maximum Pell Grant by $500 to $5,350
d. $2 billion for Head Start.
7. Homeland security
$2.8 billion for homeland security programs, including $1 billion for airport screening equipment.
8. Law enforcement
$4 billion in grants to state and local law enforcement to hire officers and purchase equipment.
You’re 81% through this paper. Sign up to read the full paper.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.