Economy
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Slow Stimulus: Where’s the Money?
November 10, 2009 - 3:42 PM | by: Anita VogelIt's been ten months since the government unveiled the massive $787 billion dollar stimulus plan. The goal was to spread the money out to all sectors of the economy -- both to government and private interests to create as many jobs as possible.
The jury is still out how all of this will ultimately work, and in the meantime, we're learning that the process is slow going.
States report that yes, they are getting the money. But spending the cash on job-creating projects is a lengthy process. So far, states have spent just under 19 percent of the money they have received. What's the hold up? Part of it is the red tape involved in securing government money and projects, according to state officials and private companies alike.
The applications for the money are daunting, and private companies that are not used to dealing with the government are having a hard time. In addition, the projects are not yet plentiful, according to various construction companies in Arizona.
Tim Muller who heads the southwest division for Austin Bridge and Road construction says the company is looking to bid on every stimulus project out there, but are waiting for more to be green-lighted. But Muller says the whole industry is hopeful the $138 billion dollar infusion of cash will help create new jobs and save existing ones.
Calif. Inspector General Laura Chick advises people should forget the idea of instant gratitude when it comes to the stimulus. "It is absolutely too early to tell whether it's successful or not."
And while the White House has stated the biggest impact of the stimulus would likely be felt in the last quarter of 2009, others argue the government works slowly and at its own pace. They believe the $787 billion dollars will still be working its way through the economy well into 2010.
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