Question

As a business person, would you have wanted your senators and US congress representative to vote for the tax cut of 2008?

How did they actually vote? Please find out

Answer 1

As a business person, I would have wanted the lawmakers that vote for the tax cuts in 2008 in the aftermath of the financial crisis. The senate worked on it, but in a different manner. In the Feb. 17 of 2009, the senate passed the stimulus package of over $787 Billion with a vote of 60-38 and named it as the American Recovery and Reinvestment act of 2009. Here, the stimulus package had different dimensions such as government spending in different sectors, relief program for troubled assets along with the tax cut plan. The fiscal policy of such a stimulus plan relied mainly on government spending, because it could make a bigger impact to stimulate the economy and increase the aggregate demand. Since the policy plan was inspired by the Keynesian economic perspective, then it made a plan that was more inclined towards demand side economy, with proper support and relief to the different sectors. It worked well to revive the US economy, though it took few years to revive the US economy.