The New Stimulus Bill Essay Example | Topics and Well Written Essays - 1500 words

The New Stimulus Bill - Essay Example It is well known to everybody that current global economic crises has its roots in the United States, where one of the biggest financial institutions collapsed due to non payment by borrowers to whom the banks freely lent huge amounts against various mortgages, specially house mortgages. The banks and financial institutions badly suffered with the collapse of Lehman Brothers in the United States. The banks and financial institutions World over hurt the public trust as they stopped or restricted further lending to housing industry as well as business. All these circumstances added to the worst global economic crises. The World vide economies went to worst recession after the Second World War. (PlentyMag 2009) Different countries took different steps they considered suitable for boosting up their own economies, United States gave two stimulus packages, one by the Bush Administration and the other by the Obama Administration. Bush Administration pumped in billions of dollars prior to current economic crises. It was specially meant for housing industry that was indicating something worst. Obviously that much money failed to give the desired results and ultimately the banks and financial institutions either became bankrupt or reached close to bankruptcy. It is understood that when the financial system of any country either collapse or it looses the public confidence than the economy of that country can not move forward. Therefore, The American President decided to float in the Congress another economic stimulus bill for about $825 billions. An economic stimulus bill is a sort of federal legislation needed to step in money into the economy to curb the economic recession. On Feb 17, 2009, a ne w economic stimulus package was passed and signed into law by President Barack Obama with just three Republican votes to promote