GLOBAL WARMING

Global Warming: Fact or Fiction

Global Warming: Fact or Fiction

Step I

More commonly known as the Economic Stimulus of 2009, The American Recovery and Reinvestment Act was enacted by the 111th United States Congress after which President Obama consequently signed it into the nation's law (Houghton, 2004). The main objective of the stimulus package was to create a prompt response to the Great Recession. Hence, the stimulus was passed for the purpose of immediately saving and creating jobs. Apart from this, another major objective of the bill was to introduce programs that would offer relied to the people who were most influenced by the adverse affects of economic recession (Houghton, 2004).

The stimulus package encouraged investments in education, infrastructure, renewable energy, and health. The total cost of the stimulus package was estimated to be a staggering 850 billion dollars. The stimulus package received a mixed response from the audience (Houghton, 2004). This means that where many pundits applauded it as a step in the right direction. There were also numerous critics who criticized it for a number of reasons. For example, the main argument for the bill was that it followed a sound rationale that was based on the macroeconomic theory propagated by the Keynesian school of thought.

Keynes was of the strong opinion that, during a recession or tough economic conditions, it is more beneficial if offset a reduction in private spending by bringing about an increase in public spending. Keynes claimed that such a move provided the perfect stimulus for saving jobs and preventing further deterioration of the economy (Houghton, 2004). However, critics who were strongly against the stimulus package voiced their concerns by simply stating that it was too weak. They also said that the package failed to cover one third of the spending gap.

Step II

In a short period of ...