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Friday, June 10, 2011
 
 
RESEARCH   AREAS
 
AEI on the Economic Crisis and the Stimulus
 

 
 
Two Years Later: How Effective is the Stimulus Package?
Related Work
 

When President Obama signed the American Recovery and Reinvestment Act (ARRA) he said, "With a recovery package of this size comes a responsibility to assure every taxpayer that we are being careful with the money they work so hard to earn." AEI scholars have examined the structure of the stimulus package and they continue to follow its progress and promises.


February marked the two-year anniversary of the ARRA, and it presented Congress the opportunity to review the legislation's effectiveness. Alex Brill, in his testimony before the House Committee on Oversight and Government Reform, argued that the effectivess depends largely on the stimulus spending occurring in a timely fashion. His testimony looked at whether or not this has happened. [Key Findings].

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Political Stimulus
 
Democratic districts received a lot more stimulus money than Republican districts and the districts of Democrats who were reelected in 2010 received even more money than districts of Democrats who were not. These patterns likely exist because more-powerful Democrats were able to capture more pork, and because pork spending helped candidates get reelected.
 
The True Story of the Financial Crisis
 
The Dodd-Frank Act was sold to the American people by the media and the Obama administration as necessary to prevent another financial crisis, but the financial crisis was not caused by weak or ineffective regulation. On the contrary, the financial crisis of 2008 was caused by government housing policies--sponsored and promoted by many of the same people who framed and ultimately enacted the DFA.
 
Uncertainty Mounts
 
Hope that the global economy has shaken off the dust of the 2007-2008 financial crisis is giving way to uncertainty as the Arab Spring and disaster in Japan threaten to reverse recovery momentum.
 
"Good Neighbor Sam" Shows How U.S. Debt Bankrupts Us
 
The story of "Good Neighbor Sam" represents America's fiscal plight, which is in a much more dire situation.
 
 
Privatizing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks Why and How
 
This book argues that privatization of the government-sponsored enterprises is the only viable way to protect the taxpayers and the economy.  
 
Serving Two Masters, Yet Out of Control Fannie Mae and Freddie Mac
 
Because two disparate clients demand loyalty from Fannie Mae and Freddie Mac, these government-sponsored entities must fulfill two ultimately irreconcilable roles.  
 
Nationalizing Mortgage Risk The Growth of Fannie Mae and Freddie Mac
 
Fannie Mae and Freddie Mac have aggressively used their government support to achieve extraordinarily high profitability and domination of the residential mortgage market.  
 
 
PAST EVENTS
 
 
At this AEI event, Sweden's minister of finance, Anders Borg, will explain Sweden's consolidation efforts, which were based on a mixture of expenditure cuts and tax increases.
 
 
Panel discussion on what kinds of financial systems, banking, mortgage securitization, central banking, and related economic effects can we expect in the post-bubble world and if we find something new or just business as usual.
 
 
"Taking the Government out of Housing Finance: Principles for Reforming the Housing Finance Market" is designed to provide common ground around which a bipartisan agreement may be forged. Join us for the first presentation of this document and a chance to ask questions and participate in a general discussion.