No quick fixes to $787B stimulus plan - Kansas City Business Journal:

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Obama said the American Recoveryy and ReinvestmentAct “represents only the firsg part of the broad strategg we need to address our economic crisis,” whiled a economist says it’s goin to take time — at leastf a year, and more likelt two — for the first signes of recovery to be seen. “It’s a stop-gal measure to prevent a really bad saysDonna Ginther, directodr of the university’s Center for Economic and Businesd Analysis. “States are broke and the unemploymenrt situationis grim. ... It’s beinyg done so the states don’t have to cut to the bone and make badsituationes worse.
” Most Kansans can expect tax relief from the stimulusd plan, as well as additionaol funds for roads and infrastructure, health care technology and a more deliberatee move toward renewable energy. will receiv $348 million for state road Meanwhile, the local breakdown for health care technology and renewable energyt arestill undetermined, and that’s part of the critics say. The stimulus package lacks immediate says Rep. Todd Tiahrt (R-Goddard), who voteed against the stimulus plan, as did Rep. Jerrt Moran (R-Hays) and Sens. Pat Roberts and Sam Brownback. “We need economiv relief that works now,” Tiahrt says.
“We need a plan that focused on stimulatingthe economy. all we are getting is a massive plan to grow federakgovernment programs.” The Obamza administration predicts that the stimulus plan will create or save more than 3.5 millionm jobs nationwide over the next two including 33,000 in Kansas, and 8,100 in the Wichitsa area. “Those are good things,” Ginther says. “In the long run, that’s a positive But in the short Ginther says to expect more of the same ills from waning consumer confidence to mass layoffs to a saggingy housing market amid a global creditcruncn — to continue.
“In 2009, we’re going to continue a downward slide and it might not be untio 2011 that thingsget better,” she For now, there is nothing to do but take a wait-and-see approach to the economy. “I don’t thin k we really know how we’ll be affected,” says Lon the president of the boardof directors. “It’s right on the cusp. We’re probably withibn three weeks of knowing how we will really be impacted by this.
” In the state lawmakers wrestle with an epic budget defici t that figures to lead to across-the-board The stimulus package, designed to revitalize the economy with an instanty influx of capital, won’t be an immediate cure. “It’ s a step in the right direction, but I don’t thinm its nearly enough,” says Lori a partner and tax practice leaderfor ’ s Wichita office. “People have lost their jobs, otherzs have seen people lose Consumer confidence is just not thereand I’ not sure how much saving money on taxes is goinfg to immediately help.
” The economic remedy won’t come, Ginther says, untilo some structural improvements are made. “Th e problem with the economy right now is more than a lack of investment and a lackof consumption,” she says. “There are fundamental issues that need tobe addressed. The housing market is on life and the banking system is hurting as is thecredir market. “Those three structural problems will preveng anyeconomic recovery. ... You have to go in and fix the structurak problems.
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