Search: Have a question? Find your answer fast.

All articles

2009Dec12 Stimulus? Not So Much!

This week’s poll asked what people think about the effect of the federal government’s stimulus plan. The poll was not scientific and was driven by radio listeners of the syndicated Don Creech Radio Show (www.DonCreech.com) and subscribers to Investor Resources Week In Review email update.

Has the stimulus plan helped, hurt or had no effect on the economy?
One half of the respondents believe the stimulus has hurt the economy with nearly a third believing there has been no impact. Fewer than twenty percent indicated the stimulus was helpful. The more time passes without a turn around in employment and economic activity, the more negative the public is likely to be. For years, Harry Dent has predicted that this presidential term would result in a single term President due to the confluence of overwhelming economic events. It is too early to say for sure, but the factors working against President Obama are not easing.
 
Is a second stimulus plan needed?
The negatives regarding a second stimulus plan were almost 90%. It seems that people understand if Option One isn’t working, more of it won’t help. Certainly, concerns continue to rise regarding the amount of federal debt being incurred and transferred to the next two or three generations. More borrowing does not solve a problem created by too much borrowing.
 
Is the federal government doing too much in its reaction to the nations financial problems?
Here the negative responses dominated with three quarters believing the government is doing too much to solve our economic problems. In a free market, some businesses always fail. Watching the government prop up companies led by close associates of President Obama’s staff creates doubt about the “too big to fail” argument.
 
Should the presidents top budget priority be to cut the federal deficit in half by the end of his first term in office?
More than two thirds of respondents voted for this objective. While this is an important, if not noble, goal, the reality is that the Administration would have to make significant reductions in the federal bureaucracy as well as support currently allocated to the states. Neither of these decisions will be made until bankruptcy is virtually knocking on the President’s door.
 
With credit agencies warning that both Britain and the US are about to lose their AAA credit rating, that knocking sound may be arriving sooner than any politician expects. Credit agencies are a bit mixed about how soon this could happen. Both countries have been put on notice that continued deficit spending is going to be costly in more ways than one.
 
Is it likely that he will achieve this goal?
Almost 95% do not believe the President can achieve this goal. Reducing the national debt was part of his campaign rhetoric. It seems to have become lost in the ash heap of political history.
 
Do you approve or disapprove of the job that Treasury Secretary Timothy Geithner has done on the credit crisis and federal bail out programs?
The responses were identical to the previous question. It is almost unanimous that the Treasury Secretary is not held in high esteem for his handling of the credit crisis.
 
Is the economy the top issue facing our country today?
Again, the numbers here are the same. Almost 95% believe the economy must be dealt with ahead of any other issue. This will create an interesting election in the year ahead. If the economy does not improve significantly by November, how many voters will blame the Democrats for pushing health care reform and cap and trade instead of resolving our economic malaise? We will have to wait and see.