2008 Economic Stimulus Act & 2009 ARRA.

The recession that began in 2008 was largely born of the policies and programs that helped bring the 2001–2004 recession to a close. In a way, it was caused in part by consumers, many of whom were convinced by unscrupulous lenders that they would be able to make tremendous investments in the real estate market. The overwhelming number of homeowners whose debt eventually overcame them sent shockwaves through the financial system and eventually helped slow down the economy to a degree not seen since the Great Depression of the 1930s. At the earliest stages of the recession, an economic stimulus package was offered by Congress to prevent a worsening of the country's fiscal condition. At the tail end of the recession, another recovery package was offered to prevent a return to fiscal instability. This paper will review these two actions—the Economic Stimulus Act of 2008 and the American Reinvestment and Recovery Act of 2009—and their effectiveness in addressing the recession of 2008–2010.