ARRA: Stimulus for the 21st century

The American economy is in crisis. More than 3.5 million jobs were lost over the last year. Americans have not seen this level of employment decline since the end of World War II. The stock market has dropped significantly, banks have curtailed lending and consumer confidence is low. The economic press is comparing the current situation to that which prevailed in the Great Depression. US President Barack Obama and the US congress have responded to the need for swift and bold action to counter this economic emergency.

On 17 February, the president signed into law the most ambitious economic stimulus plan in US history: the American Recovery and Reinvestment Act (ARRA) of 2009. The act provides a US$780 billion package, a third of which takes the form of tax cuts for 2009 while the rest is to be spent on a wide range of programmes in 2009 and 2010.

With ARRA, the president and congress have focused not only on tax cuts and spending to stimulate the economy, but also on job creation. Specific goals and provisions of the package include the following items.

Wayne Rogers is a senior adviser in the international law firm of Sonnenschein Nath & Rosenthal, where he specializes in international trade and cross-border transactions. He may be reached at +1-202-408-6478 or wrogers@sonnenschein.com.