Changes

The '''American Recovery and Reinvestment Act of 2009''', called a "stimulus bill" by its supporters but branded a "pork bill" by its opponents, was passed by Congress on Friday the 13th of February 2009 after a vote sharply divided along party lines. The purpose was to invigorate the economy that was still spiralling downward in the ongoing [[Recession of 2008]]. Conservatives Republicans proposed a similar bill about one-third smaller in dollar terms, but were overwhelmed by solid Democratic control of the House.  The Bill passed the Senate because three Republicans broke party ranks to vote for it; one of  them<ref> Senator Spector of Pennsylvania</ref> soon switched to the Democratic Party.

The '''American Recovery and Reinvestment Act of 2009''', called a "stimulus bill" by its supporters but branded a "pork bill" by its opponents, was passed by Congress on Friday the 13th of February 2009 after a vote sharply divided along party lines. The purpose was to invigorate the economy that was still spiralling downward in the ongoing [[Recession of 2008]]. Conservatives Republicans proposed a similar bill about one-third smaller in dollar terms, but were overwhelmed by solid Democratic control of the House.  The Bill passed the Senate because three Republicans broke party ranks to vote for it; one of  them<ref> Senator Spector of Pennsylvania</ref> soon switched to the Democratic Party.

It was supported by Democrats and by the [[Obama Administration]].

It was supported by Democrats and by the [[Obama Administration]].

:"The plan is primarily designed not to stimulate the economy, but the size and scope of government. More citizens will be dependent upon government largesse. This empowers the Democratic Party and its liberal elite."<ref>[http://www.washingtontimes.com/news/2009/feb/15/the-peron-pattern/]</ref>

:"The plan is primarily designed not to stimulate the economy, but the size and scope of government. More citizens will be dependent upon government largesse. This empowers the Democratic Party and its liberal elite."<ref>[http://www.washingtontimes.com/news/2009/feb/15/the-peron-pattern/]</ref>

In many ways the stimulus program resembled the [[Reconstruction Finance Corporation]] set up by [[Herbert Hoover]] and Congress in 1932 to deal with the [[Great Depression]].  Both were very large programs created to reverse a downward economic spiral by making loans to major financial corporations and other key sectors, as well as grants to cities and states, all designed to stimulate public spending to replace the freeze on spending and loaning by consumers and businesses.   

In many ways the stimulus program resembled the [[Reconstruction Finance Corporation]] set up by [[Herbert Hoover]] and Congress in 1932 to deal with the [[Great Depression]].  Both were very large programs created to reverse a downward economic spiral by making loans to major financial corporations and other key sectors, as well as grants to cities and states, all designed to stimulate public spending to replace the freeze on spending and loaning by consumers and businesses.  [[File:Varvel-11-19-09.jpg|thumb|310px|left|Gary Varvel pokes fun at VP Biden's outlandish claims]]

 

==Provisions==

==Provisions==

The total of $789 billion includes $275 billion in tax cuts and $514 billion in new spending.  

The total of $789 billion includes $275 billion in tax cuts and $514 billion in new spending.  

It includes $170 billion for infrastructure projects such as highways, internet broadband and public-housing repairs. Of that, about $40 billion will go to the Energy Department.  The act will fund projects to create a "smart" electric grid, build electric automobiles, and make homes and buildings more energy efficient.<ref> Stephen Power and Neil King, Jr. "Next Challenge on Stimulus: Spending All That Money," [http://online.wsj.com/article/SB123448815417580333.html?mod=rss_Politics_And_Policy '' Wall Street Journal'' Feb 13, 2009] </ref>

It includes $170 billion for infrastructure projects such as highways, internet broadband and public-housing repairs. Of that, about $40 billion will go to the Energy Department.  The act will fund projects to create a "smart" electric grid, build electric automobiles, and make homes and buildings more energy efficient.<ref> Stephen Power and Neil King, Jr. "Next Challenge on Stimulus: Spending All That Money," [http://online.wsj.com/article/SB123448815417580333.html?mod=rss_Politics_And_Policy '' Wall Street Journal'' Feb 13, 2009] </ref>

Responding to public outrage against bankers who paid themselves billions of dollars in bonuses while their banks were collapsing and investors losing 95% of their money, the bill imposes tight restrictions on executive bonuses at financial institutions. The provision, inserted by Senate Democrats over the objections of the Obama administration, affects banks that have received financial bailout funds. It prohibits cash bonuses and almost all other incentive compensation for the five most senior officers and the 20 highest-paid executives at large companies that receive money under the Treasury’s Troubled Asset Relief Program, or [[TARP]].  Bonuses are limited to one-third of salary and must be in a form that is paid out only after the banks repay their loans from the government.<ref> Edmund L. Andrews and Eric Dash, "Stimulus Plan Sets New Limits on Executive Pay," [http://www.nytimes.com/2009/02/14/business/economy/14pay.html?ref=business ''New York Times'' Feb. 13, 2009]</ref>

Responding to public outrage against bankers who paid themselves billions of dollars in bonuses while their banks were collapsing and investors losing 95% of their money, the bill imposes tight restrictions on executive bonuses at financial institutions. The provision, inserted by Senate Democrats over the objections of the Obama administration, affects banks that have received financial bailout funds. It prohibits cash bonuses and almost all other incentive compensation for the five most senior officers and the 20 highest-paid executives at large companies that receive money under the Treasury’s Troubled Asset Relief Program, or [[TARP]].  Bonuses are limited to one-third of salary and must be in a form that is paid out only after the banks repay their loans from the government.<ref> Edmund L. Andrews and Eric Dash, "Stimulus Plan Sets New Limits on Executive Pay," [http://www.nytimes.com/2009/02/14/business/economy/14pay.html?ref=business ''New York Times'' Feb. 13, 2009]</ref>

==Conservative criticism==

==Conservative criticism==