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.

Reader Comments

Thu, Jan 22, 2009 Richard Strube Vestal, New York

President Obama recently spoke on his economic recovery plan; that he wanted projects that will spend money wisely and prudently. That green economy is the “Key to the 21st century”, that alternative energy production must be larger, and be part of our energy system. I have a way (not the only way) to do this but it needs funding. We, my company, Strube Industries has requested funding from the U. S. Department of Energy - Office of Basic Energy Sciences. DOE currently has a program to address energy research # DE-PS02-08ER15944 (CFDA Number: 81.049) and they plan on awarding multiple awards on basic energy research toward the end of 2009. If the administration’s economic stimulus package could move this up, at least for those of us that are small businesses, we can get this area of the economy moving and as most of us will need to hire degreed engineers, scientists and skilled craftsmen to do this; our hiring is another way to get us back to work. In my particular case Strube Industries will need to hire 10 to 15 people. SI is a women and veteran owned very small business. Please provide money to all of the companies that have submitted a letter of intent to the DOE. Currently US electrical utilities use oil, gas, coal, and other bio-products to power generators. These fuels are all carbon based, create pollutants as a byproduct; increase the carbon footprint, and create greenhouse emissions. In addition, many of these materials cause the US to send overseas Billions of Dollars. It is my opinion that all of the companies that have ideas that can help eliminate this problem should get a chance to show if their idea works or is practical; at least allow these companies to contribute and demonstrate their basic research.

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