Wikinvest Wire

Dim views on the economy and the stimulus

Monday, August 17, 2009

A new poll on the economy and the stimulus program helps to explain why consumer confidence has been souring in recent months at the same time that equity markets have soaring, something that only a few investors have noticed, that is, up until last Friday.

This report in USA Today details the rather dim view now held by the public regarding President Obama's stimulus program and the economy in general.
IMAGE Apparently the public at large has yet to hear the good news that a majority of economists recently polled by Bloomberg think that the recession is already over.

Isn't it time for an update to that poll that ranks profession's trustworthiness?

As I recall, the last time it was conducted, economists were sinking rapidly.

Some details about the poll:

A USA TODAY/Gallup Poll found 57% of adults say the stimulus package is having no impact on the economy or making it worse. Even more —60% — doubt that the stimulus plan will help the economy in the years ahead, and only 18% say it has done anything to help improve their personal situation.

That skepticism underscores the challenge Obama faces in trying to convince the public that the stimulus has helped turn the economy around. It also could complicate the administration's plans to overhaul the nation's health care system.

"This is a wake-up call for the administration." says House Minority Whip Eric Cantor, R-Va. "People see the stimulus hasn't worked, and now you want to lay on over $1 trillion in a health care plan."

The administration declined to comment on the poll results.

The stimulus package contains $288 billion for tax cuts and $499 billion in new spending, much of it meant to pay for unemployment and other social services. The $1 billion "cash for clunkers" program was not part of the bill, although its $2 billion expansion comes from stimulus funds.
Maybe the government should accelerate the schedule for the next stimulus plan. From the looks of the fading American consumer, it may be be needed sooner than we think.

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Anonymous said...

The scene: Wall Street trading desk, a phone rings. A trader puts down his caviar and lox bagel and answers the call.

"White House calling. Please hold for the president....go ahead, Mr. President."

Obama: "What's this I hear about 57% of Americans saying the stimulus isn't working?"

Wall Street: "Gee, Mr. President, let me check...(sound of laughter, clinking champagne glasses, roars of approval and raucous singing of "He's a jolly good fellow" in the background)...Well, sir, 99% seem happy up here."

Obama: "Why only 99%?"

Wall Street: "It's very unseemly sir, but it seems one of the cleaning staff wandered onto the trading floor. Security is beating him as we speak, but don't worry, he's Mexican, not black."

Obama: "Well, okay then, so the bailout is 100% effective as far as you are concerned?"

Wall Street: "Yes, sir, but not to say we couldn't use another one. We're running awfully low on Krug."

Obama: "I'll get right on that, thanks. TIMMY! TIMMY! Get your skinny honky ass in here and tell my why my boyz in NY are running dry on 'poo?"



staghounds said...

But James Carville just said that "Every economist in the world says the stimulus is working".

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