For the past 80 years, the United States has yet to heal the economic devastation the Great Depression caused. In 2007, the nation was on the brink of a recession “almost wiping out the American economy. When President Obama took the Oath of Office, America was promised a better economy; however, Obama's attempt at restoring the economy was a massive disaster. The American Recovery and reinvestment act of 2009 not only creates a larger government deficit, but also barely impacts the economy. Is Fiscal policy actually effective? No, fiscal policy in the real world barely “ if not negatively “ impacts the economy. "Expansionary fiscal policy involves higher spending and more government borrowing; it could cause crowding. This means that although the government spends more because they borrow from private sector, the private sector have less to spend and invest. Therefore, overall AD doesn't increase  (Pettinger). In the last few years, the government has wasted money in several different programs instead of using it towards improving the economy. "$783,000 was spent on a study of why young people consume malt liquor and marijuana ¦ $219,000 funded a study of college hookups  (Document 3). This clearly shows how the government spends money in unnecessary programs. This unnecessary spending also adds to the Federal Deficit and increases the national debt which is currently around $17 Trillion. "If the government cuts taxes without reducing spending, it hasn't really cut taxes. The tax cuts in the stimulus package- amounting to over $200 billion in tax cuts and credits- are made possible not by reductions in Federal spending, but by deficit spending. In other words, the government is borrowing the money to pay for the tax cuts and will have to pay it back, plus interest. When that time comes, it will have to raise taxes and inflate the value of the dollar to pay up  (humblelibertarian.com), Resulting in long term complexiti