The Great Recession of 2007-2009wreaked havoc on the U.S economy as housing prices collapsed and credit markets froze around the world. As the crisis was unfolding, the presidential election of 2008 was underway. So, with the economy in focus, President Obama was sworn into office in January of 2009. Soon thereafter a fiscal stimulus packaged was proposed and passed by congress and signed into law.

Read the "Last Word" section titled "Stimulus and the Great Recession" then respond to the following...

What is the case for fiscal stimulus? Why would the government spending money stimulate the economy?

What went right and what went wrong with the 2009 fiscal stimulus package? What lessons can we learn for the current stimulus package being debated in Washington?