Economics With Financial Literacy

The Result of the Bush and Obama Era Economic Stimulus Packages

An assignment for Honors Economics, lesson 4.05, by Sarah Knezel

The Economic Stimulus Act of 2008 was an act that gave middle and working class citizens an extra 300 to 600 dollars in their tax returns, with the intention of the citizens using it to stimulate the economy to fight the results of a recession, with a projected cost of 152 billion dollars, yearly. It is unknown what exact percentage of the budget it consumed for the 2 years it was active. For all it cost to the taxpayer, and the controversy surrounding it, was it worth it?


    

In my opinion, a bill is empowered by its intentions, this bill was a success by most measures. Its impact on the GDP was immaculate, and by any professional opinion that is good, domestic manufacturing must produce jobs, that’s how things are made. Any discrepancies related to the bill were related to, but not caused by. I feel like this should be a go to bill for post-recession cleanup.

Works Cited

Amadeo, Kimberly. “How Congress Really Spends Your Money.” The Balance. The Balance, 22 Mar. 2017. Web. 27 Mar. 2017. <https://www.thebalance.com/current-u-s-federal-government-spending-3305763&gt;.

Broda, Christian, and Jonathan Parker. “Did the 2008 US Tax Rebates Work? | VOX, CEPR’s Policy Portal.” Did the 2008 US Tax Rebates Work? Voxeu, 15 Aug. 2008. Web. 27 Mar. 2017. <http://voxeu.org/article/did-2008-us-tax-rebates-work&gt;.

“Economic Stimulus Payment Q&As: Eligibility.” Economic Stimulus Payment Q&As: Eligibility. IRS, 16 July 2008. Web. 27 Mar. 2017. <https://www.irs.gov/uac/Economic-Stimulus-Payment-Q&As:-Eligibility-&gt;.

Haugen, Steven E. “Characteristics of Minimum Wage Workers in 2002.” Monthly Labor Review 126.9 (2003): 37-40. Web. 22 Mar. 2017. <https://www.bls.gov/opub/reports/minimum-wage/archive/characteristics-of-minimum-wage-workers-2014.pdf&gt;.

“H.R. 5140 (110th): Economic Stimulus Act of 2008.” GovTrack.us. Govtrack, 8 Feb. 2008. Web. 27 Mar. 2017. <https://www.govtrack.us/congress/bills/110/hr5140/text&gt;.

Pacitti, Aaron. “Raising the Minimum Wage Boosts Growth and Does Not Cause Unemployment.” The Huffington Post. TheHuffingtonPost.com, 27 Apr. 2015. Web. 22 Mar. 2017. <http://www.huffingtonpost.com/aaron-pacitti/raising-the-minimum-wage-_3_b_7152976.html&gt;.

Riedl, Brian. “Why Government Spending Does Not Stimulate Economic Growth: Answering the Critics.” The Heritage Foundation. N.p., 5 Jan. 2010. Web. 27 Mar. 2017. <http://www.heritage.org/budget-and-spending/report/why-government-spending-does-not-stimulate-economic-growth-answering-the&gt;.

Silversmith, David, CPA, CFE. “Review of the Economic Stimulus Act of 2008.” Review of the Economic Stimulus Act of 2008 (n.d.): 1-4. Akmcpa. Web. 27 Mar. 2017. <http://akmcpa.com/wp-content/uploads/2011/10/Review-of-Economic-Stimulus-Act-of-2008.pdf&gt;.

ThinkProgress. “Study: A Minimum Wage Hike Would Stimulate The Economy.” ThinkProgress. ThinkProgress, 08 July 2013. Web. 22 Mar. 2017. <https://thinkprogress.org/study-a-minimum-wage-hike-would-stimulate-the-economy-f02ca75732fc#.j9lij2kxf&gt;.

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Economics With Financial Literacy

T-Bonds, Futures, and Money Market; The Dichotomy Between Aggressive, Moderate, and Conservative Investment.

An Analysis of 3 Major Economic Investments and Their Future.

Economics assignment 2.04 HONORS, by Sarah Knezel.

Despite the safety of this option- the use of it is going down; according to the national statistics, only about 10% savings are bonds, a staggeringly low rate- considering T-Bonds are extremely safe and conservative. So why don’t we want bonds? The US Gov’s treasury reports the cou20-34-editpon equivalent (which is the ultimate comparison figure for nominal and discount rates), the rate is far less than the US’ inflation rate of 2.07%; except for the 13th week, there has been a general decrease in interest, making bonds an irresponsible pick in regards to what you get back. The future of government bonds looks bleak and practically nonexistent, notwithstanding its major security benefits.

The main issue with futures isn’t the futures themselves but finding information on them. Futures are high-risk private contracts between sellers and buyers, ensuring one will buy a large quantity of a product from the other at a set rate. An example of this would be you predicting a large boom in the cow population sometime next year, and signing into a future agreeing to buy a 350 dollars-worth of milk for 200 dollars. What makes this risky is that it’s an actual gamble, despite this, they do not seem to be uncommon. The fascination surround futures is the fascination of legalized betting and gambling.

Money markets are the very definition of a moderate investment option, they’re the ultimate moderate option, for high payments they offer a higher rate of return, such as anywhere from .8 to .11%, this accounts for their growing popularity in recent years. In Europe, 2009-2010, the average investor with a money market account increasedImage result for money market figures their payments from 0.59 to 0.85 percent which is no surprise considering money markets accounts persistence on keeping a competitive interest rate.

 

SOURCES:

http://www.investinginbonds.com/learnmore.asp?catid=9&subcatid=50&id=97https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=billrateshttps://www.statbureau.org/en/united-states/inflationhttp://www.bankrate.com/finance/investing/treasury-bonds-pay-interest.aspxhttps://www.personalcapital.com/blog/investing/america-turns-back-bonds/https://www.treasury-management.com/article/4/198/1710/the-continuing-popularity-of-constant-nav-money-market-funds.htmlhttps://www.fdic.gov/regulations/resources/rates/