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Soon after the crisis surfaced in its entirety the US government came up with proposed stimulus packages of $825 billion. The declared package was so big that, it could be the gross domestic product of the 19th largest country, just ahead of Australia.

The stimulus was wide ranged from money for infrastructure and tax cuts to schools and health-care technology. Let us see the key components of this stimulus package:

As can be well understood from the breakup as shown above that the stimulus package as announced by the government of US was very comprehensive. It tried to cover every aspect of the economy and create long term value for the economy and society as a whole.

After Mr. Barrack Obama took over the charge as the president The American Recovery and Reinvestment Act 2009 (ARRA) was passed on 17th February 2009. The measures are nominally worth $787 billion. The Act includes federal tax cuts, expansion of unemployment benefits and other social welfare provisions, and domestic spending in education, health care, and infrastructure, including the energy sector. The Act also includes numerous non-economic recovery related items that were either part of longer-term plans or desired by Congress (e.g. A limitation on executive compensation in federally aided banks).

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* Contributed by: -
Madhav Kumar Sharma, is a student of MBA at NMIMS, Mumbai. His specialization is in Finance. Before joining NMIMS, he had four years of work experience in the merchant navy as an Engineer Officer. His interests include finance and economics.