Arra Law: The Day It Came To Be

The American Recovery and Reinvestment Act, also known as ARRA, was signed into law by President Barack Obama on February 17, 2009. The legislation was designed to stimulate the U.S. economy by creating and saving jobs, with a focus on mitigating the effects of the Great Recession of 2008-2009. The law, commonly referred to as the Stimulus, represented the largest economic recovery effort in U.S. history, with an initial package estimate of $787 billion.

ARRA meaning

ARRA, also known as the American Recovery and Reinvestment Act, was signed into law by President Barack Obama on February 17, 2009. The legislation was designed to stimulate the U.S. economy by saving and creating jobs, with a particular focus on industries affected by the Great Recession of 2008-2009.

Background

The Great Recession, spurred by the decline in the housing market, the subprime mortgage crisis, and the collapse of financial services firms like Lehman Brothers, led to a significant downturn in the U.S. economy. The Dow Jones Industrial Average shed nearly half its value between October 2007 and October 2008, and the country's unemployment rate jumped from 5% to 7.8% during the same period.

Provisions of the Act

The ARRA package included:

• $288 billion in tax relief for individuals and companies, including credits for renewable energy production.
• $224 billion in funding for entitlement programs such as unemployment benefits, Medicaid, and food stamps.
• $275 billion in grants, loans, and contracts, particularly for education, transport, and infrastructure.

Criticism and Impact

The Act, also known colloquially as "the Stimulus," faced criticism from Republicans and some liberals. Republicans argued that it was too expensive and unlikely to effectively boost the economy, while some liberals believed the package should have been larger.

Despite these criticisms, the nonpartisan Congressional Budget Office estimated that the number of people employed increased by between 1 million and 2.9 million as a result of the law. The ARRA is considered the single largest economic recovery effort in U.S. history.

ARRA in Roman and civil law

ARRA, also known as arrha or arrhabo, is a term used in Roman and civil law. It refers to a deposit or sum of money given as proof of a contract of buying and selling. The term is derived from Latin, meaning "earnest money".

In Roman law, the concept of arra is said to have originated from Greece, with the Greeks having a similar concept in their law of sale. The Romans adopted this idea, and it became an integral part of their legal system. According to Gaius, "What is given as arra, is a proof of the contract of buying and selling; but it also has a more general signification." This means that while arra was often associated with monetary transactions, it could also be applied more broadly to signify an agreement between two parties.

The use of arra in Roman law evolved over time. Initially, it was used in the absence of consensual contracts, serving as evidence of an agreement between parties. Over time, consensual contracts became more common, and arra took on a different role. It could be given before the completion of a contract, as a sign of good faith, or as evidence of a contract absolutely made, signifying the unalterable obligation of the contract.

If the party giving the arra refused to complete the contract, they would forfeit the arra. On the other hand, if the party receiving the arra refused to complete the contract, they would be obliged to return double the amount of the arra. When the contract was fully performed, the arra was usually restored, unless it was money, in which case it could be taken as part of the price.

The use of arra in Roman law was quite flexible, and it could be applied to various types of transactions, including the purchase of land, sales of movable items, and even betrothment.

In civil law, the concept of arra is similar to the earnest of the law of sale in modern civil law systems. It serves as a deposit or security to ensure the fulfilment of a transaction and the protection of both parties involved.

ARRA in the American Recovery and Reinvestment Act

The American Recovery and Reinvestment Act (ARRA), also known as "the Stimulus", was signed into law by President Barack Obama on February 17, 2009. The legislation was designed to stimulate the U.S. economy by saving jobs jeopardized by the Great Recession of 2008-2009 and creating new ones. The bill was introduced in the U.S. House of Representatives less than a week after Obama took office, and on January 28, 2009, the House of Representatives passed its version of the bill, which envisioned an $819 billion package of government spending and tax cuts. The bill then went to the Senate, which approved a package of $838 billion on February 10. After negotiations, a slightly pared-back version of the bill was endorsed by Democratic congressional leaders, providing for $787 billion in stimulus—the largest single economic recovery effort in U.S. history. The final bill was passed by both houses of Congress on February 13 and signed into law by President Obama four days later.

The law was criticized by Republicans as too expensive and unlikely to reinvigorate the economy, while some liberals argued that it should have been bigger. Economically, the stimulus aimed to create new jobs, save existing ones, and invest in economic activities facilitating long-term growth. The original package estimate of $787 billion provided for $288 billion in tax relief, $224 billion in funding for entitlement programs, and $275 billion in grants, loans, and contracts, particularly aimed at education, transport, and infrastructure. The overall costs of the law were reestimated in 2011 to be $840 billion.

Despite the passage of the stimulus, the unemployment rate continued to rise to its highest level in more than 25 years, lending ammunition to critics who argued that the stimulus had failed. Nevertheless, GDP turned positive in the third quarter of 2009, raising hopes that the country was emerging from recession, and the unemployment rate began to decline slightly throughout 2010. While Democrats and Republicans disagreed over the effects of the stimulus, the nonpartisan Congressional Budget Office estimated 30 months after its passage that the number of people employed had increased by between 1 million and 2.9 million as a result of the law.

ARRA in Latin

The American Recovery and Reinvestment Act (ARRA), also known as "the Stimulus", was signed into law by President Barack Obama on February 17, 2009. The legislation was enacted to stimulate the US economy by saving and creating jobs following the Great Recession of 2008-2009.

Now, onto the Latin meaning of "ARRA". In Latin, "arra" is a feminine noun that means a token payment on account, earnest money, deposit, or pledge. The word is associated with the idea of a partial payment made towards a larger purchase or agreement. It is also related to the concept of providing security or evidence of a contract or agreement.

The term "arra" has been used in various contexts throughout history. In Roman law, "arra" or "arrha" referred to a sum of money or object given by one party to another as evidence of a sales contract. This deposit was not essential to the contract but served as proof of the agreed-upon price. If the party providing the "arra" backed out of the contract, they would forfeit the deposit, while the receiving party would have to return double the amount if they were the ones to break the agreement.

The word "arra" also has a broader meaning in Latin, representing evidence of agreement in contexts beyond just sales, such as betrothment or matrimony.

ARRA in real estate

The American Recovery and Reinvestment Act (ARRA) was enacted by the U.S. Congress and signed into law by President Barack Obama on February 17, 2009. Colloquially known as "the Stimulus", the ARRA was designed to stimulate the U.S. economy by saving and creating jobs, with a particular focus on the real estate sector.

The legislation included a range of measures to boost the economy, including tax relief, funding for entitlement programs, and investments in infrastructure and transportation. While the overall costs of the law were estimated at $787 billion, the impact on the unemployment rate and the creation of new jobs was a subject of debate between Democrats and Republicans.

One of the key focuses of the ARRA was the real estate sector, which had been significantly impacted by the Great Recession of 2008-09. The collapse of the housing market and the subprime mortgage crisis were major contributors to the economic downturn. To address this, the ARRA included funding for grants, loans, and contracts specifically aimed at real estate development and infrastructure projects.

For example, the ARRA provided funding for the expansion of bridges and transportation networks, as well as for the development of new communities and urban areas. One notable project associated with the ARRA in real estate is the company Arra Ltd, which operates in Dubai and is involved in several real estate projects in the region.

The ARRA also had a significant impact on the entitlement programs related to real estate, such as unemployment benefits, Medicaid, and food stamps. The legislation provided additional funding to support individuals and families affected by the recession, many of whom were facing challenges in maintaining their housing and property ownership.

Overall, the ARRA played a crucial role in stimulating the U.S. economy, particularly in the real estate sector, which was one of the industries most affected by the Great Recession. By providing funding, grants, and tax relief, the ARRA helped to create and save jobs, stabilize the real estate market, and lay the foundation for long-term economic growth.

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