DEFM 410Week 3 ForumAmerican Military University DEFM 410: P, Lecture notes of Accounting

Download DEFM 410Week 3 ForumAmerican Military University DEFM 410: P and more Lecture notes Accounting in PDF only on Docsity! DEFM 410 Week 3 Forum American Military University DEFM 410: Program Appraisal Forum Week 3 In 2008, the United States Economy took one of the largest flops in its history, second only to The Great Depression. Between February 2008 and February 2010, roughly 8.7 million jobs were lost and employment peaked at 10.6% by January 2010 (Kochhar, 2020). The GDP also fell 4.3%, making it the second largest recession ever up to that point. The cause of this Great Recession was the overuse of subprime mortgages and their widespread securitization were primary factors that triggered the financial crisis of 2007–08 after the demand for housing reached a saturation point in the United States in late 2007 To combat what is now referred to as the Great Recession, The American Recovery and Reinvestment Act (ARRA) of 2009 was signed by President Barack Obama on February 17, 2009 as a fiscal stimulus (Amadeo, 2020). Much like what Reich was touching on in his presentation, flooding the economy with capital through policy. The goal of ARRA was to end the 2008 recession with mandated government spending, tax cuts and loan guarantees to jumpstart the failing economy. ARRA had seven targeted components, immediate relief for families, modernized federal infrastructure, increase alternative energy production, expanded health care, improved education, investment in science research and technology, and to help for small businesses (Amadeo, 2020). When all was said and done, the government spent $831 billion on various programs under ARRA. The idea was to offset the lack of private spending with an increase in public spending, while trying to protect jobs and deter further economic ruin. We are always talking about using history to help determine policy, what has worked, and how can it be used. Today we find ourselves in another sort of “Great Recession”. The outbreak