The American recovery and recommendation act of 2009 is also commonly referred to as the stimulus act or the recovery act. It was officially enacted on the 17th of February in 2009 by the 111th United States congress; this was basically a package in the economical sector with the aim of stimulating it. This was an idea initiated under the regime of president Obamna; he therefore was the one who signed it thus enforcing it into law. The economical issues were the core motives behind this enactment; it was inclined to two objectives, specifically, the immediate creation of jobs and provision of a temporary program which will be perceived as a relief to the majority of those who were vastly affected by the huge invests in education, infrastructure, green energy and health. In addition, there were those who were drastically affected by the recession which took place in the late 2000s therefore; they were also included in the beneficiary list of the recovery act.
The initial estimated value of the economical package was $787 billion when it was passed however its cost was raised to $831 billion during 2009 until 2019 (Multiple authors, 2009). The entire act had the inclusion of directed spending incurred in education, health, infrastructure, and energy, incentives of the federal tax and the benefits of unemployment which were expanded on the basis of expanding the social welfare sector. On the other hand the project also focused on other long term expenditure projects which included the study of how effective is the medical treatment sector together with their items which combined by the congress; for instance the combination included.
The American recovery and reinvestment act of 2009 was basically formed from the rational theory of Keynesian macroeconomic which stipulates that during the period of recession. The government must put into consideration measures of offsetting the decreases of spending on the private sector with the aim of increasing the expenditure of the public sector. This will serve the purpose of saving jobs and avoid more economic set backs. Immediately after the act was put in place, it was dealt a major blow of criticism from Paul Kurgman; claiming that the law was totally infective and it did not cater for even a third of the whole intended spending
The main purpose of this paper is to come up with a detailed coverage of all issues discussed in the American recovery and the reinvestment act of 2009. This recovery act gave a total of $16.8 billion to the energy office with the aim of facilitating its initiatives and programs. A part from that the recovery act also had other major goals which are intended to be achieved either within a short term or achieved later; saving and creation of more job opportunities, initiate more activities related to economical growth within both short and long term and coming up with appropriate measures of ensuring that government expenditure are handle with transparency and total accountability (Wilson, 2011). The amount of money that was set a side by the recovery aided in cutting down taxes thus benefiting a million of workers and their business, these funds also played a vital role in several programs including unemployment and its benefits, finally these funds were used by the federal in settling its debts, paying off loans and grants.
In 2011 there was an increase in the total amount of the expenditure with the aim of unifying the presidential budget which was read in 2012 and the recovery act’s funds, as a result the recovery fund was increased further to $840 fro the initial $787 billion, this change was however made by the budget office of the congress. Regarding the issue of transparency the recovery act required all those who received the funds to draft reports quarterly in every year on how they are spending the money (Weltman, 2010). The recovery act directed all the data regarding the expenditure of the funds to be posted on their website recovery.gov to enable the public in tracking funds which were recovered. On the other hand the recovery act has plans of giving financial assistance to district schools; the credit for child tax also be expanded and come up with appropriate was of ensuring that the hospital records are fully computerized. There are plans underway of fostering proper development of infrastructure, which entails 75% weatherization of all billings of the federal and over a million of other private homes. This will also include proper construction of bridges and maintenance of all damaged roads. Other projects which directly benefited from this recovery act are the wireless sector and service and broadband expansion.
The recovery has been bestowed GSA with the mandate of ensuring that all the sustainable process and practices are carried out in the entire federal government in a very efficient and appropriate way; this basically involves increasing the efficiency of energy, a reduction of the gases emitted from the greenhouse, water conservation, waste reduction and to ensure that communication is sustained (CCH Tax law editors, 2009). This process is faced by a number of challenges that should be dealt with accordingly; one of the challenges is coming up with managerial framework which will enhance quick realization of the set goals and objectives. Collection of relevant information which will foster and give needed support to several set objectives and give an evaluation of all the returns with regard to all investments. On the other hand is advisable that the recovery act funds specific programs to avoid unnecessary funding of certain programs.
There should be appropriate acquisition of scheduled programs at a pocket friendly price which will comply with the recovery act objectives and efficient management of the workload to give the best results. Generally, this will prove to be a very challenging task to deal with; in addition, there is another big challenge of getting manual to implement these programs. Financial reporting is another sector of concern which entails financial and budgetary control, which needs to have a quarterly report with clear explanations about how money was spend however this must be in relation with the acquisition system and the entire process of verifying and reviewing liabilities related to environment estimations with regard to the financial statements. Information technology enhance development, planning and general implementation of all technology related to recovery act. In addition there should be additional improvements should be take into consideration to ensure that all information related to general service administration is full protected from any form of cloud computing. Protection of entire federal facilities and their affiliated personnel is also another issue of great concern, though the working environment well secured there are other risk factors like the unauthorized access from terrorism (CCH Tax law editors, 2009).
The American recovery and reinvestment act of 2009 in an initiative which basically works towards improving the live of many Americans, however this dream will be only realized if measures are put in place to ensure that all the vices are eradicated; this included proper accountability and transparency in all funds allocated by the recovery act, putting measures in place of baring all security risks at bay and ensuring that relevant forms of technology are put into consideration to ensure a clear record keeping atmosphere is reached. Generally if all the relevant steps are followed then each and every goal set in the recovery act will be comfortably reached.