Did the Obama stimulus package actually slow the economy?

September 2, 2009

An interesting bit from the WSJ:

Dave Anderson, chief financial officer of Honeywell International Inc., said the stimulus package actually froze business activity at first as firms tried to figure out how they could benefit from the government spending. The $787 billion package “created actually a slowdown in order activity in terms of the flow that we would normally have anticipated,” Mr. Anderson said at a conference sponsored by Morgan Stanley. “We anticipate that that’s going to actually pick up in the second half of the year. I think it’s not unreasonable to see several hundred million dollars of orders.

Me: This sounds similar to what seems to happen when cutting taxes. If the start date is a ways off, economic activity is delayed.

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Still, the average working person lives in fear of losing what little is left. So far, the only time blue collar types were mentioned was back in Feb. when government told GM “get those workers and retirement agreements fixed and we’ll hand over the bucks.” China is doing better than Americans with all the money so far spent. GM is partnering over there now. Thanks a lot!!

Posted by RH Pyle | Report as abusive