Great Depression Stimulus Packages 2008 and 2009
Stimulus packages were released on multiple fronts to prevent a second Great Depression for America:
•American workers ($178 billion in tax rebate checks, May 2008)
•homeowners ($300 billion to help modify home loans and prevent foreclosures, July 2008)
•unemployed ($787 billion in tax cuts and job creations programs, February 2009)
•Fannie Mae and Freddie Mac ($400 billion bailout, July 2008 and February 2009)
•AIG ($150 billion bailout, September-November 2008)
•American banks ($700 bailout, October 2008)
•automakers ($47 billion, September 2008 and March 2009)
In addition, in April 2009, the United States participated in a $1 trillion global lending program, devised by the G-20 countries.
Although the various stimulus packages were controversial and contributed heavily to the U.S. national deficit reaching all-time highs, undoubtedly, they helped stave off a more dramatic crisis.
Given that the first Great Depression lasted more than twelve years (from 1929-1941, only ending with America’s entry into World War II), it’s too soon to tell whether these massive assistance programs and government bailouts will shorten today’s Great Depression.