When will Stimulus Stimulate?
By Quiplet
@Quiplet (255)
United States
August 21, 2009 1:16pm CST
From all accounts I've read, the vast majority of the approved stimulus has not been released. If this is true, what is the delay?
Will there be a 'kick' to the economy when the rest is absorbed into the states... like next Spring thus increasing the economic outlook and employment data just in time for the 2010 elections?
If so, would that be a strategy or just the unraveling of red tape? Curious.
1 person likes this
3 responses
@sunny68 (1327)
• India
21 Aug 09
that is a tricky one. if i am not mistaken there was no stimulus package. all the fundings were made to clear the bad debts or the dirty assets. so theoretically the banks and financial institutions have cleared their accounts and now they are making a fresh start. in other words the the stimulus package made good all the loss such institutions made and has got nothing to do with you and me, our loss is for good. so we will get jobs only when corporates start selling which will only happen when we start buying (which we cannot because we have no jobs). what will come first, (chicken or egg) the answer is still awaited.
@Quiplet (255)
• United States
21 Aug 09
I like that... chicken or egg scenario.
With all that's been coming down the road (or crossing the road if you consider the chicken) it's difficult to keep up with all those billions.
I'm thinking the initial 'kick' was done last September when the Treasurer informed then Pres. Bush that our country would shut down without a huge pump from the treasury. It was argued that the banks could not lend money. It was agreed to by many economists within and without the government. That's when the banks were given billions, but very few of the banks are - even now - loaning money to small businesses.
Then there was another package early Spring to stimulate growth within the cities and states which was passed by Congress. In Hampton Roads, our area was authorized millions to keep the public transportation running. ( that's arguable)
But the 'green' jobs and the 'shovel ready' jobs, to my knowledge, have not been half-funded. That is where the jobs are supposed to lie.
Then, according to the plan anyway, people will have money to buy and pass around. Sad thing is, the banks with all their money -- all their new funds are only NOT lending to small businesses, they are also not providing the intended relief to homeowners. ( I pay my mortgage on time thank you )
And, oh yeah, it is tricky.
@Carson11 (332)
• United States
21 Aug 09
Stimulus has never worked.They tried it in Japan for 10 years,it was a failure.Obama wanted the Europeans to do it,they said "NO" it doesn't work. If you were broke,would you spend like a drunken sailor on shore leave? I would CUT spending. Spending weakens the dollar and causes inflation. It also puts a huge financial burden on our children. Stimulus is just an excuse to spend. That's what Obama likes,SPENDING.
@Quiplet (255)
• United States
21 Aug 09
I'm in the process of reading "The Forgotten Man." No one can say what would have happened without the New Deal. People are uncertain if this huge stimulus will work, or what would have happened if it had all fallen back to the marketplace.
It is a very serious time for our country.
I agree that spending weakens the dollar and inflation is not too far behind. If you pay very close attention, you can see the prices in the grocery store slightly declining. I know because I'm on a budget.
That type of stimulus would not work for my personal circumstances, that's for sure.
@tdemex (3540)
• United States
21 Aug 09
It was designed to go slowly, it appears to be working slowly as designed, although people are impatient, myself included, I've been laid off since last October! There,as usual are a lot of people who disagree and throw out the numbers and so called facts. I have noticed a marked improvement in the lob search engines lately, this is all the proof I need, and I know it won't be long until my search will end and I'll be back in the drivers seat! I'm old and have been through times like this before, time will be the cure! 
tdemex
tdemex@Quiplet (255)
• United States
21 Aug 09
I can sympathize with your predicament. Family members with good skills are looking for jobs and finding it difficult.
I tend to be positive. If unemployment is 10%, that means your chances are very good, and even better if you have good skills. Be persistent - and stop calling yourself old. You are not old, my friend, you are experienced, and that's what you need to sell.
