Catherwood LibraryILR School

As the last weeks of the Bush presidency begin to wane, political thought on the economic crisis is starting to turn from bailout measures, which have little direct impact on economic growth or job creation, to talk of a stimulus plan. Little has been said in Congress concerning big money for a stimulus plan, but Charles Schumer (D ? NY) estimated last week that $500 - $700 billion will be needed. President-elect Barack Obama has made no concrete statements as of yet but has spoken of a recovery plan intended to add 2.5 million jobs to the economy during the first two years of his presidency ? an achievement that would require adding nearly $1 trillion to the annual economic output, via private and government spending, and tax breaks. Prominent economists argue that at least 50% of the plan should include public spending projects, such as highway or school repairs, which can have a multiplier effect on the economy by creating jobs, which in turn increase spending, which in turn creates jobs. The problem here though is a lack of ready-to-go projects that could begin in the next few months.