Govt Budgeting and Finance
Professor: Vaida Maleckaite
2011 US.Budget A Summary
“Budget Message of the President” – A Summary
The President of the United States prior to a budget year gives a speech on the fiscal well being of the Nation. This budget is published by the by the Office of Management and Budget. This speech outlines the economic situation, the progress that the country has made during the year 2011and the issues facing as we look forward and. The budget also includes other important documents such “Rescuing the Economy,” “Reviving Job Creation and Laying a New Foundation for Economic Growth,” and “Restoring Responsibility.” This summary ...view middle of the document...
The government created opportunities for banks to receive funds to lend businesses and people to buy homes. They gave large financial institutions loans to stay afloat like AIG by enacting the American Recovery and Reinvestment Act. Through the TARP “Troubled Asset Relief Program” funds were loaned to this company to strength its fiscal condition. The American Recovery and Reinvestment Act was formed during these economic times to help create jobs, increase unemployment benefits and investments green energy, infrastructure and healthcare. This economic stimulus would help lift the country out of its recession. The Recovery Act not only provided tax cuts to small businesses and 95 percent of working families and provided emergency relief to those out of work or without health insurance; it also began to lay a new foundation for long- term economic growth and prosperity. With investments in health care, education, infrastructure, and clean energy, the Recovery Act both saved and created millions of jobs and began the hard work of transforming our economy to thrive in the modern, global marketplace and reverse the financial . Corrective Action- for job creation
The Recovery Acts will in the future provide reduced taxes to small businesses. It will fund projects that use green energy technologies in its infrastructure. It will fund innovating education programs, It will create jobs in industries that were on the edge of closing such as the automotive industry. It saved Chrysler and GM. This Budget will stop capital gains taxes for investment and help them get loans to continue operation. The rationale for ARRA was from Keynesian macroeconomic theory. These wide-ranging measures encompassed to strengthen the banking system, increase consumer and business lending, and stem foreclosures and support the housing market.
“Rescuing the Economy,”
The President put certain financial assistance for large corporations such as GM and Chrysler. They were bailed out by TARP who received money from the Recovery and Reinvestment Act. To get these funds they had to produce a restructure plan that would show how they will succeed in a profitable business. The housing industry was helped by the Homeowner Affordability and Stability Plan. They made mortgages affordable by reducing the interest rates for buyers and providing mortgage assistant programs such as Hardest Hit Fund.
“Reviving Job Creation and Laying a New Foundation for Economic Growth,”
The budget stated that “ as of the end of November 2009, about 50 percent of Recovery Act funds—or $395 bil- lion—has been either obligated or is providing assistance directly to Americans in the form of tax relief. By design, the bulk of the remain- ing 50 percent of Recovery Act funds will be de- ployed in the coming months of 2010 and during the beginning of 2011 to support additional job creation when our economy continues to need a boost. Many of the programs slated to receive additional...