Mangment Public Policy

Mangment Public Policy

As our country experiences difficult economic times, extreme measures will be needed to bring us out of the current recession. We continue to move downward financial spiral resulting in job cuts, high unemployment, foreclosures, and a stress on bank loans. A change of administrations would allow our new president to create a plan that's revives the ailing economy. A cure for our failing economy can be seen in the recently passed stimulus bill. Our understanding of the recovery package requires that we define the plan, know why is needed, and look at criticisms of the bill. We should begin with a definition of the American Recovery and Reinvestment Act.

Defining the stimulus bill causes us to look at Congress and their economic advisors. As president-elect, Barack Obama requested that Congress create an economic recovery plan. The president-elect “urged Congress to pass a costly, job creating stimulus bill” (Fouthy and espo, 2008). Our nation requires immediate action. Both Democratic and Republican parties will be needed to successfully pass this legislation. The bi-partisan effort stems from “contacting economists from across the political spectrum”. The Obama advisers sought advice about improving the economy. These advisers reached across party lines to take ideas from Democrats and Republicans.

We should examine the content of a recovery package. We must also understand how the package works. Our government, at this point, will take action a scale that can solve the problem. The desperatley needed action requires “federal investments in health care, education, and energy”. Spending now in these important areas ensures that help will be given immediately while we preapre for future generations. When the government spends from a $787 billion stimulus bill, money is pumped into the economy. Now citizens have opportunity for employment because federal dollars are going into programs which can bring in workers. Once America goes back to work, there is money to rebuild the economy. In addition to a definition of the stimulus bill, we should discuss why its needed.

Fixing the depressed economy proves why the stimulus bill is needed. We can see from history that our failing economy may take us back into another depression like the Great Depression of 1929. Council of economic Advisers chairperson Christina Romer warns that “upcoming economic problems could be more severe than anything the country has faced over the past half century”. If we fail to act now, history will repeat itself. The stimulus bill should save and create millions of jobs. The President believes “if we do not act swiftly and boldly . . . we could lose millions of jobs next year” (Fouthy and espo, 2008). The President emphasizes that a quick infusion of funding from the stimulus bill will raise the economy.

A newly passed American Recovery and Reinvestment Act (ARARA) will extend unemployment benefits. As the job market weakens, more and more people are forced to apply for unemployment benefits. According to the Labor Department, “claims for unemployment benefits jumped . . . to the highest level since July ...