American Recovery Pros And Cons Essay

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The American Recovery and Reinvestment Act Pros and Cons Thomas Bagwell Mr. Dupree POLS 102 Introducion America is a capitalist society, but the government often steps in to try to fix things. As the economy collapsed, a large step was made with the American Recovery and Reinvestment Act of 2009. It is debated whether this stimulus package was effective or not. Capitalism Our society is based is based on Capitalism. Capitalism is a free market exchange. This is being able to come up with ideas and products and freely sell them. Capitalism involves less government control. The government doesn’t monitor everything that goes on within the market, they just set up the guidelines. The guidelines cover safety, environment, monopolies,…show more content…
The act didn’t address the problems the country was facing because it didn’t require the banks to give out loans and it used the people’s money in an inappropriate manner. If the government was going to give the money, it should have been regulated as to how it was spent. The banks kept the money, raised requirements for loans so that most people couldn’t get them and resulted in no money movement and a stagnant economy. The money was supposed to ‘trickle down’ to the people, but the opposite effect occurred that was wanted by the act…show more content…
For example, $15 billion was given to companies to offset losses. The rich, those making $250,000 or more, should not have tax incentives because they already have enough money. The rich can afford to pay more due to having more. It is the middle class and the poor who struggle in this economy and not the rich, according to this argument. Although it is the rich who employ the middle class and the poor, the rich are also accused of holding on to their money and not spending it while those with less money would be required to spend their money due to their intense need
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