Stimulate or Stall? Some Local Experts Not Sold on Idea of Second Stimulus Plan

By: Kristin Burke
By: Kristin Burke

WIFR-(ROCKFORD)

23 News Financial Expert Brad Gummow says artificial stimulus does not work as we have seen recently upon the expiration of the incentives.

While only half of the 787 billion has been spent from the first package, Gummow says we have seen little impact locally especially when it comes to jobs. He adds, government spending does not stimulate economic growth, but instead, shifts resources from one area to another.

Gummow questions how much more money we can afford to give away. But others say we need to leave all options on the table, in effort to create jobs.

"I would think the next government intervention should be to incent businesses to hire. If we were to incent businesses to grow and hire, I think that's our way out of the economic slump in the long run."

"The fact that we don't have another 787 billion to spend will act as a drag on our economy. The view is hopefully a year from now we'll begin to see a much stronger private sector demand and therefore it will offset the weakness expected from the government side the private sector will pick up that slack."


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Trustworthy Location: Rockford on Jul 20, 2010 at 03:50 PM
    The only way additional stimulus money would have a major effect is if the government sought out companies that moved their operations to foreign countries. Give them each a couple of million $$$ to bring their factories back to the USA. Hire only US citizens, produce exportable products and they get tax breaks for 5 years. It's the only way to increase our economic base and bring jobs back. Too bad they don't think of it themselves because it would work. How many companies can you name that left American in recent years? There are at least 10 of them right here in Illinois.
  • by Staci Location: Rockford on Jul 20, 2010 at 02:45 PM
    Like someone with the net wealth of Brad Gummow has ANY idea of how desperate half of the rest of the country is for money.
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