Quote:
Originally Posted by ArturiusX
Thing is, businesses can use the stimulus package as backing for its future forecasts, so maybe a power company can say "ok, this project will cost a billion over 5 years, lets start hiring 20% more people now to prepare and invest in 200 million dollars worth of products from steel maker X".
I general I agree, but what percentage of stimulus spending is even specific enough to forecast anything on? IIRC the vast majority of the stimulus package was things like weatherizing lower-income homes and government buildings, unemployment extensions, grants to by awarded by xyz agency, small weekly tax cuts to workers, and the like. What businesses can reliably forecast anything based on this type of spending?
China's infrastructure-heavy stimulus package seems to fit your scenario much better than America's. I could be wrong though.
Last edited by T50_Omaha8; 05-08-2009 at 02:55 PM.
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