Sunday, July 12, 2009

the real reason the economic stimulus package hasn't pulled us out of a recession yet (and when we well likely get out of the recession)

I've notice a lot of talk about the fact that the Economic Stimulus package hasn't worked to get us out of this recession.

Of course politicians that voted against the stimulus are saying they would have done better and there's even talk of a need for a second stimulus plan to be run (oddly enough some of the people saying this disagreed with the ideal of a stimulus in the first place)

These views are over looking something very big, either out impatient (really do people think the economy would turn so extremely that we would go to record job lose to job gains in a few months) or they are using this as a political ploy.

The truth is that out of the nearly $787 billion stimulus under 10% of the funds have been used for anything.


the money is select to be spent in a number of areas. They have a number of project that haven't yet (or just starting to) get of the ground. There is also money for States to spend in certain areas but no states have really done any big project yet because they didn't have enough time, and from what I've seen most things wont be able to get of the ground until 2010 or so.

it takes time to get infrastructure projects off the ground. it takes time for people to go through the education and training that have been set, ect.

Because of this fact I don't think we well get out of the Recession (or the so called real recession which basically means the average Joe and Jane well start doing well economically) in 2010 or 2011.

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