By Jeffrey A. Burnstein, President, Robotic Industries Association
President Obama signed the stimulus package into law. Will it work? You can read opinions on every side of the issue. It’s too big, too small, too much spending, not enough tax cuts, too slow in rolling out — nobody seems all that enthused about it. The stock market certainly isn’t, hitting three month lows this morning prior to the official signing.
I attended the AIA Business Conference two weeks ago, where David Littman, a respected economist, told me that even though he felt the package was terrible because of all the government spending included, it would be helpful to have the legislation completed. Why? Because the uncertainty of what would be in the bill, when it would be signed, how much in spending and tax cuts would be included, etc., was a drag on the economy. Nobody would act until they knew the final details of the plan. And, the longer the delay in enacting it, the worse the economy would get.
So, now it’s passed, and I hope it works. I can’t say when we’ll start to see a recovery (latter half of this year, early next year, late next year, or maybe 2011, depending upon who you speak with). But, eventually we will recover and all of us need to be positioned for growth when it happens.
Every company is dealing with the crisis in its own way. While many are cutting back on people, benefits, travel, marketing and other areas, some are getting more aggressive, hoping to take market share when the turnaround comes.
My question today for you is: do you think the stimulus package will speed the recovery in the US? Delay it? Or, have no impact? Leave a comment and let me know!