Recovering from the Recession

In 2008, America started to experience what would be the worst economic downfall since The Great Depression, which took place in the late 1920's through the 1930's. The crash began due to the real estate and housing market crash; people would take out loans to pay for houses they could not afford, and when mortgages came around, people abandoned the homes. Furthermore, when the banks came crawling for their money, the public could not pay back the loans, let alone with the hefty interest rates. So for a long time, the economy of the United States experienced a great economic lull that effected everyone. For some people it did not effect them much, for others, they went from rags to riches. In order to reestablish balance in the economy, United States policy makers knew that GDP needed to expand and grow. The level of cash flow through the economy needed to increase; this would put more money in the pockets of businesses and the general public itself. It was in these thoughts generated the roots to create legislation to aid the entire country. The American Recovery and Reinvestment Act of 2009 was implemented in February 2009 to increase and expand GDP, save and create jobs, and help out programs and institutions that were greatly effected by the Great Recession. According to economists, it is estimated that in between the next ten years (2009 to 2019) $831 billion to reinstate balance to the economic system.
The American Recovery and Reinvestment Act (also known as ARRA or the stimulus bill), spent most of its time, money, and energy in the areas of health, educations, and unemployment benefits. Of course other social welfare areas were, and currently still being, aided, but these occupations took some of the greatest hits due to the Recession. When money is short, priorities change; moreover, schooling and health come secondary to any source of income one can find. Ironically without the proper schooling and education, people can not receive the jobs that are able to provide for themselves and their families. If an employee is not healthy, then they can not go to work and perform to provide for themselves and their loved ones. The ARRA implemented stimuli packages that would help increase GDP; for example a couple of the packages are titled: "Health Coverage Tax Credit, which pays 72.5 percent of qualified health insurance, and more people are qualified" and "Money Back for New Vehicles, which allowed taxpayers who bought new cars or certain other new vehicles in 2009 to deduct their state and local taxes they paid" (IRS 1). These packages allowed the cash flow in the American economy to circulate more in quantity, rapidly, and more efficiently. Since 2009, the levels of unemployment have decreased dramatically due to the reforms of the ARRA, even after many economist doubted how effective it would be. Since the ARRA has been implemented, the AD curve has shifted outward, which is a result of the increase in GDP, making the point of equilibrium a more profitable and prosperous than before.

https://www.irs.gov/uac/The-American-Recovery-and-Reinvestment-Act-of-2009:-Information-Center