Stimulus bill is no quick cure for struggling economy
It might take years before an infrastructure spending program proposed by President Barack Obama will have a positive impact on the economy, reports the Associated Press.
The observation is based on analysis by economists at the Congressional Budget Office of Democrats’ efforts to boost the economy through traditional public works projects. The economists believe much of the infrastructure improvement money won’t hit the economy until it is already on the mend. Obama began laying out the key elements of his economic plan in December 2008.
Only $26 billion of the $274 billion in infrastructure spending would be delivered to the economy by the Sept. 30 end of the budget year, according to the CBO. It also will take considerable time before funds are delivered for renewable energy programs, broadband Internet services to under-served areas and clean water drinking projects.
Nevertheless, other elements of the $825 billion economic recovery plan, including a huge infusion of help for state governments, will be distributed into the economy more quickly.