The Purpose of the American Recovery and Reinvestment Act Essay

The American Recovery and Reinvestment Act (ARRA) is a piece of economic stimulus legislation designed to aid in the recovery of the US economy from a downturn that started in early 2008. Federal government expenditures included in the ARRA package were made to stop job losses brought on by the recession. The ARRA included 787 billion dollars in funding for tax reductions, social program supplements, and increasing investment in infrastructure, energy, health care, and education. The purpose of ARRA was to boost the economy by maintaining and adding to existing jobs. The requirements placed on the legislation by the Obama economic team were based on three objectives. These included stopping the nation’s fast declining economy, swiftly putting Americans back to work, and reinvesting the nation’s long-term economic future by creating the foundation for a stronger economy. Therefore, ARRA focused on providing more money for families through tax relief, including reductions up to 800 dollars per family, spending over 120 billion dollars on infrastructure, healthcare expansion, and increasing investment up to 100 billion dollars in education.