In February 2008, President George W. Bush signed the so-called Economic Stimulus Act into law. The legislation provided taxpayers with rebates ($600 to $1,200), which they were encouraged to spend; reduced taxes; and increased the loan limits for federal home loan programs (for example, Fannie Mae and Freddie Mac).
This last element was designed to, hopefully, generate new home sales and provide a boost to the economy. The so-called “Stimulus Package” also provided businesses with financial incentives for capital investment.
In his first few weeks in office, President Obama signed a second “Stimulus Package” into law, this time earmarking $787 billion for tax cuts as well as spending on infrastructure, schools, health care and green energy.
Whether or not these initiatives brought about the end of the Great Recession is a matter of debate. However, at least officially, the National Bureau of Economic Research (NBER) determined that, based on key economic indicators (including unemployment rates and the stock market),
the downturn in the United State officially ended in June 2009.