The recent economic recession has been felt by us all. If you have not been affected by the recession personally because of a financial or job loss, than it is safe to bet that you know someone who has suffered. With so many job losses, stocks falling and the financial system that holds America together in a hug mess it seemed as if we were headed for a depression. Fortunately a change in leadership provided a modern day New Deal plan to stimulate the economy and help everyone bounce back from this recession. President Barack Obama’s American Reinvestment and Recovery Act has provided many of us with stimulus help that we can benefit from in a variety of ways.
The stimulus plan implemented by President Obama shortly after his swearing in as president will and has done its part in stimulating the economy and helping the average American through the recession. The stimulus has helped to create jobs and helped to keep a little extra money in the pockets of the American citizens. There are widespread projects to fix roads and bridges which helps to create jobs. In addition, part of the stimulus package includes a “Making Work Pay” tax credit that will lower the amount of money withheld from your paycheck thus providing more money for you to take home.
Likewise, the stimulus plan really addresses the faltering housing market head on by offering a number of solutions and options to assist struggling homeowners. To assist those struggling with their mortgage payments the plan allows homeowners that have a mortgage of more than 30% of their income to refinance or seek a loan modification to obtain a more affordable mortgage payment. Many lenders are reaping the benefits of the stimulus plan because they are being paid for every loan modification they process. This provides a benefit for both the homeowner seeking a lower mortgage payment and the lender who wishes to make money and avoid the costs associated with filing a foreclosure. Similarly, the housing market is also receiving a boost by offering new homebuyers tax credits worth up to $8,000.
Along with other government assistance for new homebuyers this tax credit, which does not have to be repaid, is instrumental in stimulating the housing market. Overall, the stimulus plan has a vast positive effect on the economy, housing market and the lives of the American citizens.