Stimulus Package Could Fall Short Of The Mark – Assignment Example
The paper "Stimulus Package Could Fall Short of the Mark" is a wonderful example of an assignment on macro and microeconomics. The anticipates that the U.S. is in for a “prolonged period of tough economic times”. Despite the fact that strong economic stimulus package has been provided by the Obama Administration, the bad economic situation would not recover soon. People may have many hopes on the whopping economic stimulus package provided by the Obama Administration to revive the U.S. economy. But Anderson anticipates that although this package may help the U.S. to return to “at least some modest GDP growth in the second half of 2009” yet this stimulus package can’t bring a miraculous change in the U.S. economy as “much wealth has been destroyed by the decline in home and stock values”. The U.S. will not be able to rebuild its lost wealth in near future. The author cites the data and says that the U.S has seen a “decline of about $5.3 trillion in household wealth in the third quarter of 2008 alone and stock market and housing price declines accelerated further in the fourth quarter of 2008”. So it would take mind-boggling 17.6 years to rebuild the lost wealth “as the mighty U.S. consumers spending power isn't what it used to be, and isn't likely to return with vigor anytime soon”. The author argues that much more effort is needed to push the economy.