The paper "Growth of the National Economy Analysis" is a wonderful example of an assignment on macro and microeconomics. The $ 787 billion stimulus package was designed to jumpstart the economy and help in saving millions of jobs. The administration aimed at instilling confidence which was needed for economic growth. The leading economist was of the opinion that the biggest challenge that faced the Obama administration was the softening of recession, the stimulus package that was put in place was not enough to create the impact, it only led to a ballooning of the national debt.
The plan was blamed for both failing to reduce the unemployment by a threshold of nine percent and adding the debt to levels that were considered threatening. There is enough evidence to show that the stimulus package that was put up by the government inspired the confidence which was needed to keep the economy going. By economic indicators the stimulus was a success, the GDP had risen to 3.9 percent, the Dow had risen to 10428. Economists argue that not all of the success can be directly be attributed to the Obama administration stimulus package, emerging markets and expansive monetary policy also played some part in helping to turn around and boost the economy. Mark Zandi in his studies claimed that stimulus helped in saving millions of jobs and as a result prevented the economy from going to a deeper recessionAccording to John F.
Cogan and John B. Taylor, the available data highly confirms that the stimulus programs did not work; they concluded that the enactment of these policies was only a win for Keynesian wishful thinking. They feel that although the policy debate focused on the multiplier’ s size, indicators show that the dollar volume of government purchases that has been generated did not have a negligible effect.
Mr. Cogan is a senior fellow at Hoover Institution and Mr. Taylor is an economics professor at Stanford. James Feyyer and Bruce Sacerdote of Dartmouth College concluded that the stimulus measures put in place by the Obama administration had varied effects in terms of employment the two economists in their study concluded that it had a positive and significant effect The overall stimulus was between 0.47 and 1.06 figures they concluded are high enough to be considered as a success given the level of the recession that the country had previously experienced.