Economic Stimulus Appropriations Act of 1977

Economic Stimulus Appropriation Act
Great Seal of the United States
Long titleAn Act making economic stimulus appropriations for the fiscal year ending September 30, 1977, and for other purposes
Enacted bythe 95th United States Congress
EffectiveMay 13, 1977
Citations
Public law95-29
Statutes at Large91 Stat. 122
Legislative history
  • Introduced in the House as H.R. 1 by George H. Mahon (D-TX) on March 10, 1977
  • Committee consideration by Appropriations
  • Passed the House on March 15, 1977 (281-126)
  • Passed the Senate on May 2, 1977 (63-15)
  • Reported by the joint conference committee on May 3, 1977; agreed to by the House on May 4, 1977 (326-87) and by the Senate on May 5, 1977 ([1])
  • Signed into law by President Jimmy Carter on May 13, 1977

The Economic Stimulus Appropriations Act of 1977 was a stimulus package enacted by the 95th Congress and signed into law by President Jimmy Carter on 13 May 1977.[1] Developed in response to the longest and deepest economic recession post World War II, the primary objective of the stimulus package was to provide the economy with a boost.

The bill's rationale was based on Keynesian economic theory, providing tax reductions and increasing jobs to boost private spending, preventing the economy from any further slowdown.[2] The approximate cost of the bill was estimated to be $20.1 billion spread across 1977 and 1978,[1] where the act helped to create 9.3 million jobs, the largest increase in job creation for any presidency. The act was a contributing factor to stagflation, which was apparent when Carter took over the office but worsened towards the end of his term.[3]

The politics around the stimulus made the act highly controversial. The Republicans felt that the act was overcompensating, while on the left, many Democrats felt that the act was not doing enough and was not big enough. Economist Milton Friedman argued that the tax cut would have little effect on consumption and GDP.[4]

  1. ^ a b Scott, Austin (May 14, 1977). "Carter Signs $20.1 Billion Jobs, Stimulus Measure". The Washington Post. Retrieved May 4, 2020.
  2. ^ Eizenstat, Stuart (24 April 2018). President Carter : the White House years. Albright, Madeleine Korbel (First ed.). New York, N.Y. ISBN 978-1-250-10455-7. OCLC 1004376369.{{cite book}}: CS1 maint: location missing publisher (link)
  3. ^ Taylor, John F. Cogan And John B. (2011-10-03). "Stimulus Has Been a Washington Job Killer". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-05-28.
  4. ^ "Carter Stimulus Plan Criticized by Friedman". The New York Times. 1977-02-28. ISSN 0362-4331. Retrieved 2020-05-28.