As concerns about recession, inflation and unemployment fill the headlines, leaders in Washington D.C. are banking on a wide-ranging stimulus package to boost the nation’s economy. Creighton University economist Ernie Goss says putting all politics aside, sending Americans tax rebate checks for $600 will not offer the hoped-for economic bailout nationwide — or here in Iowa.
Goss says: "I am not supportive of the stimulus package. It’s like taking water out of one end of the pool and putting it in the other. By the time the package is sliced, diced and delayed by Congress, any positive benefits will just come at the wrong time." While the national economy is showing many areas of weakness, Goss says Creighton’s surveys of nine states across the Midwest are indicating the regional economic picture is already slowing down.
Goss says: "I’d rather handle this through the Federal Reserve. The Fed has been very aggressive in reducing interest rates, although even with those interest rate cuts, we’re still likely to see a downturn in the U.S. economy, a downturn in the regional economy and a downturn in the Iowa economy."
Goss says he has several concerns, as the Creighton business conditions index has plunged for third time in the past four months, the Midwest region has lost jobs for third time in the past four months, and consumer confidence has dropped to its lowest level since the 2001 recession.