Economics Research Paper

Economics Research Paper

 In 2010 the US unemployment rate hit 10.2 percent but later reduced to 3.8. Describe some of the programs the Obama administration introduced to help ease the macroeconomic burden

The US. Unemployment rates have undergone seasonal changes since the recession the country witnessed in 2008. The rising unemployment rates among US citizens had been a significant problem some years back, affecting the economy. In 2010, the US unemployment rate hit a whopping 10.2 percent but later reduced to 3.8 percent.  The 10.2 percent unemployment rate brought a sense of urgency for the Obama administration, calling for job creation his number one priority.[i] The Obama administration proposed and instituted policies that addressed public services mainly support programs such as housing, environmental restoration as essential steps to ease the macroeconomic burden facing the country.

The Obama administration made a significant adjustment to the financial system to improve the lives of every citizen. Thus, his economic restructuring programs were short term macroeconomic stimulus programs to reduce unemployment. One of the notable economic stimulus programs initiated was the Recovery and Reinvestment Act[ii]. This initiative was the government invest billions of dollars in reviving the economy. The home mortgage crisis was part of the overall economic crisis in the US; the Obama administration passed legislation to protect its citizens from losing their homes.  Some of the significant steps included nationalizing government banks dealing with housing such as Fannie Mae and Freddie Mac[iii]. This strategy cushioned homeowners from the economic crisis. With this strategy, many employees refinanced mortgages despite the value of the loan exceeding the benefits of their homes. The government initiated housing policies that provided financial support for mortgage recovery. Mortgage owners paid the minimum monthly payment for distressed American homeowners[iv].  To further support homeowners, the Obama administration revived Home Owners Loan Corporation, and the government used these corporations as a long term strategy where citizens could acquire loans from the government. The government took a direct approach to regulate the housing sector. In return, the homeowners got warned as they received compensation from the government when their houses sold[v]. One of the significant reforms in health care was Obama care, an initiative that adopted a universal approach to health care coverage in an attempt to reduce health care costs. The Affordable Care Act focused on low- and middle-income families, a strategy meant to reduce the cost of health care for uninsured individuals.[vi]  By cushioning Homeowners, the Obama administration stabilized the economy. Additionally, the introduction of the United States Security and Clean Energy Act was a move to transition to a greener economy[vii].

The Obama administration invested in the energy sectors, and one of its significant achievements was the implementation of the Cap and Trade program [viii] . The program generated huge revenues by selling permits to manufacturing firms in the US.  This program allowed these entities to earn billions. The government invested some revenues in clean to sustain the sector[ix]. Despite the economic crisis in the US, the macroeconomic initiatives by the Obama administration eased the macro burden. Most of these stimulus programs helped lift the economy setting the economy to a steady path.

[i] Epstein, Gerald. “Obama’s economic policy: achievements, problems, and prospects.” Revue de la regulation. Capitalism, institutions, boudoirs 5 (2009).

[ii] Cassidy, John. “Obama’s Economic Record: An Assessment.” The New Yorker.10 January 2017.

[iii] BIT.  “U.S. unemployment rate hits 10.2 percent”. International Business Times. 11 June 2009.

[iv] Jaffe, Matthew. “Jobless Rate Soars Above 10 Percent, Highest in 26 Years”. Abc News.  6 November 2009.

[v] Sherk, James.  “Unemployment Remains High Because Job Creation Has Yet to Recover.” The Heritage Foundation. 4 June 2010

Works Cited

BIT.  “U.S. unemployment rate hits 10.2 percent”. International Business Times. 11 June 2009.

Cassidy, John. “Obama’s Economic Record: An Assessment.” The New Yorker.10 January 2017.

Epstein, Gerald. “Obama’s economic policy: achievements, problems and prospects.” Revue de

la regulation. Capitalism, institutions, boudoirs 5 (2009).

Jaffe, Matthew. “Jobless Rate Soars Above 10 Percent, Highest in 26 Years”. ABC News.6

November 2009.

Sherk, James.  “Unemployment Remains High Because Job Creation Has Yet to Recover.” The

Heritage Foundation. 4 June 2010.