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Stimulus package and business: any examples of the stimulus package benefitting business?

Has the current stimulus package had any effect on business? Can anyone give an example?

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Rick Kadet
Vice President, Senior CFO Consultant, The Brenner Group, Inc.

Ths stimulus package was in several parts. There were some tax cuts, payments to institutions such as schools and government agencies, and infrastructure projects. Quite a lot of money was spent, and it is my considered opinion that the stimulus was helpful in stabilizing employment and business levels. We should not forget the benefits of TARP which stabilized the banking system without which none of us would have much today in terms of personal assets and wealth.

It is hard to measure the benefits of tax cuts as money in the pockets of business and consumers just filters out slowly and no one is sure on what. Schools and Universitys and government agencies were able to stabilize employment and kick off some research project which otherwise would have been unaffordable considering state and local budget cuts. I know that there have been many road and similar projects that have employed people directly and through manufacturing industries that supplied the materials. My preference would have been to have more of the stimulus in these road projects where the direct benefits of the spending can be measured and the products used in construction are for the most part made in the US.

TARP was a critial part of removing fear from the economy, and the bailouts of the auto industry has had very positive effects as the car market has come back. I shutter to think of what would have become of many parts of our country without a robust auto industry. So the benefits of stimulus are all around us and I am comfortable that this program made a real difference in our commencement of recovery.

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