Question

What did obama create to respond to the financial crisis?

Answer 1

Answer: American Recovery and Reinvestment Act

Explanation: The American Recovery and Reinvestment Act of 2009 (ARRA) also known as the Recovery Act, was a stimulus package enacted by the 111th U.S. Congress and signed into law by President Barack Obama in February 2009. This federal statute was developed in response to the Great Recession, and its primary objective was to save existing jobs as well as create new ones as soon as possible. The Act also aimed to provide temporary relief programs for those most affected by the recession and invest in infrastructure, education, health, and renewable energy.

The estimated approximate cost of this stimulus package was $787 billion initially at the time of passage, but was later revised to $831 billion. The ARRA's rationale was based on the Keynesian economic theory that, during recessions, the government should offset the decrease in private spending with an increase in public spending in order to save jobs and stop further economic deterioration.

It is generally believed that the economic stimulus package reduced unemployment during this period and that the eventual benefits of the stimulus outweighed the costs.