Since the onset of the economic upheavals in the world, economists have pointed direct fingers at the energy sector internationally. With the Middle East being the heart of the world major energy driving force (petroleum) source, the stimulus package has been regarded as a big joke and a trial to please the people as a major reward for the newly elected president. Arguably, all the other sections are strongly dependent on energy sector.
As a result, it should have received the largest amount compared to others like educations and supplemental investments. Besides, the distribution the US $ 49. 7 billion should have been directed at effectively making more petroleum available to the country for the domestic and industrial utility. To add to that, more money should have been set for establishment or renewable energy and therefore reduce the current over reliance on the Middle East for supply of petroleum.
Though understood that it was a direct stimulus package for better production through increased production capacity for the industries and home considerations, the figure should have been made higher as it is through energy that most industries would be able to revitalize themselves in a manner that would complement other needs for employment in a sequential format throughout the supply chain and restoration of people’s purchasing power.
To add to that, some of the sections aspects like allocation of US $ 2 billion to the advanced car battery systems, US $ 3. 25 billion for western area power administrations, and US $ 500 million for green collar workers should have been reduced and added to other sections like tax relief for the companies to reduce their running costs while raising their ability to employ more people. 5. What is yet to be done To effectively manage the current economic problems in America, the legislation must focus at the source of the instead of proposing changes that are poorly founded. The basic cry and source of anger by the oil producing countries in the Middle East is partly genuine after the direct involvement of US in the gulf war for a second time.
Therefore, the legislation should therefore address the immediate relationship with the Middle East Arab countries to ease the direct tension and revenge connotation in their minds. Being considered as the enemy of the Arab countries, mending the relationship would demand legislative considerations that would ensure better trade links and enhanced interaction with the same states to reduce the witch hunt (Pegg, 34-36). Being described as worse than the recession that took place in 1929, the country has been warned to avoid sweeping the issues under the blanket as they will soon explode with much larger effects to the people in the society.
Therefore, the most viable option left for the country is to exploit the wind and the solar energy alongside other renewable energies to drive its economy on a large scale for higher long term benefits. Being the superpower, the bill lacked to consider other countries and international mood that would be necessary for their ability to buy the produced goods from the country (Kuttner, 65-78). Therefore, it might take much longer for the country to realize its expected growth as other players and mostly consumers in the international market are ill equipped to purchase the produced goods (Nagel, 74).
Most of the US goods are exported to other countries that form their major consumers. 6. Conclusion The American Recovery and Reinvestment Act (ARRA) of 2009 has been timely and expected to make significant changes in the world economy. This is because most of the international communities are highly dependent on US in one way or another. The direct down turn has been strongly linked to the US economy down ward trend as these countries either directly or indirectly depend on it. Though the package was never voted by the republicans in the congress, it was able to pass credit to the majority of the democrats in the house.
Of greater importance sections that were incorporated in the bill which would help the economy to recover fast and long-term persist were “the aid to low income workers, unemployed and retirees (including job training) and Education”. These sections would not only restore the people’s capacity to avail the necessary services in the regions, but also improve the production ability of the products and services sector which had been adversely affected due to people’s reduced buying power.
However, it would have been better if the energy section was given more consideration necessary to ensure much more reduced production costs for higher profitability and employment power in us. Finally, the source of the current upheavals in the economy should be holistically addressed to not only ensure even faster recovery but seal the country from such future problems in the economy. Work cited page Kennedy-Shaffer, Alan. The Obama Revolution. Washington: Phoenix Books, 2009. Kuttner, Robert. Obama’s Challenge: America’s Economic Crisis and the Power of a Transformative Presidency. New York: Chelsea Green Publishing, 2008.
Fox, Justin. Will Obama’s Stimulus Package Work? Time Magazine January 9, 2009. Retrieved on March 10, 2008 from <www. time. com/time/nation/article/0,8599,1870575,00. html>, 2009. Pegg, John. Senate Passes Stimulus Plan, Tough Negotiations Loom. Retrieved on March 10, 2008 from <http://74. 125. 95. 132/search? q=cache:BHTBQkx8gdQJ:www. ens-newswire. com/ens/feb2009/2009-02-10-10. asp+senate+passes+stimulus+package+2009&hl=en&ct=clnk&cd=3&gl=ke>. Nagel, Dave. Senate Passes Stimulus Package; Ed Tech Mostly in Tact. Retrieved on March 10, 2008 from <www. thejournal. com/articles/23977>, 2009.