Today is the one-year anniversary of the Federal Economic Stimulus Program. Creighton University Economist Dr. Ernie Goss is not celebrating the anniversary. He says we have created a “bail-out” nation. He says right now, California and New York are standing in line waiting for their bail-out.
Dr. Goss states this mentality has also spread to individuals. He gives the example that people are likely waiting on the sidelines for the next Cash for Clunkers program to buy a car. He says bail-outs are not a good message to send to customers.
Dr. Goss goes on to say that while the stimulus package has created jobs, he disputes the high number given by officials on Capitol Hill. He says it did create jobs but the cost to do is more than the benefits we will ever get back in return.
Dr. Goss says the employment picture is not looking good for the next year. He does not see significant jobs being added because there is too much uncertainty as government official’s deal with health care, Cap and Trade and the 2001 and 2003 tax cuts that are going to disappear by the end of this year. He says that uncertainty is putting businesses and individuals on the sidelines with a wait-and-see attitude.
Dr. Goss says much of the bail-out money is likely gone for good. He says funding given to A-I-G is likely gone for good and he doubts that Chrysler and G-M will be able to pay anything back. However, he says some that received money have made good on pay-back program.