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Essay / Research Paper Abstract
This 8-page paper discusses the impact of the American Recovery and Reinvestment Act on U.S. employers. Bibliography lists 6 sources.
Page Count:
8 pages (~225 words per page)
File: D0_MTbailempl.rtf
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Unformatted sample text from the term paper:
has hit the United States. While everyone is pretty much in agreement with the fact that something needs to be done, groups are having struggles coming to a specific agreement
as to what. The close to $1 trillion American Recovery and Reinvestment Act, as its dubbed, has had its share of critics (and officially garnered very partisan bickering as well
as passage). What probably has not been quite as well publicized, however, is the Acts impact on businesses and employers, and how soon that impact will be felt. Certainly, there
has been casual reference to the Acts influence on employers (especially those in the banking industry). But what this paper will try to explain is what the Act has in
store for employers. Though the literature, at this time is pretty scant about how quickly employers will be impacted by the Act and its billions, we can get a good
idea of what might be in store through the remainder of 2009. Financial Crisis and Impact on Businesses When the financial crisis
hit in late September 2008, spreading bank closings and in one case (IndyMac) an investor run, many economists predicted dire consequences "from Wall Street to Main Street." Though the bank
failure put a paralyzing shock on the financial markets, its effect started seeping down into businesses that had nothing to do with stocks, bonds, derivatives or any other types of
investments. The reason is that businesses and banks are linked - the bank loans businesses money so businesses can expand, hire people and produce goods and services. The businesses then
pay off loans, and banks then turn around and re-lend money to another enterprise or individual. That cash and credit flow is what keeps the wheels of the economy greased.
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