American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009 was a United States fiscal stimulus law enacted during the Great Recession, combining tax cuts, aid to states, and federal spending.

Fiscal stimulus: Government spending increases or tax reductions intended to raise economic activity. The act was a large fiscal stimulus designed to counter falling demand.
Great Recession: A severe global economic downturn that began in 2007 and lasted through the late 2000s. The recession's collapsing output and employment created the case for emergency stimulus.
Christina Romer: An American economic historian who chaired the Council of Economic Advisers from 2009 to 2010. Romer helped develop the administration's assessment of the stimulus needed to address the downturn.
Macroeconomic effects of the American Recovery and Reinvestment Act: Research estimates of how the 2009 law affected output, employment, and other economic indicators. These estimates measure whether the act softened the recession and how large its effects were.
Economic Stimulus Act of 2008: A federal law providing tax rebates and business incentives in response to the 2008 slowdown. It was an earlier, smaller stimulus that relied more heavily on temporary tax rebates.
American Recovery and Reinvestment Act tax credits: Tax reductions and credits enacted by the 2009 law for households and businesses. Tax relief formed a major part of the act's support for disposable income and investment.
Financial crisis of 2007–2008: A global crisis triggered by failures in financial markets, especially housing finance and mortgage lending. The financial crisis drove the downturn that the act was intended to mitigate.
Lawrence Summers: An American economist who directed the National Economic Council under President Barack Obama. Summers coordinated economic policy discussions surrounding the recovery package.
Employment effects of the American Recovery and Reinvestment Act: Estimates of jobs supported or created through spending and tax provisions in the 2009 law. Employment was a central stated goal and a major measure of the law's performance.
Troubled Asset Relief Program: A 2008 federal program authorizing support for financial institutions and other parts of the economy. TARP targeted financial-system stability, while the recovery act focused on demand, public services, and investment.

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