Where are key economic indicators headed?
Recent data on unemployment, wage growth, consumer confidence, and other indicators show few signs of economic recovery. If that trend continues during the second half of 2009, or if there are signs of widespread “malaise” (as may be reported by the University of Michigan in its “consumer sentiment index,” and by other institutions), expect calls to continue, and increase, for another economic stimulus package to be enacted into law. Is additional money needed or just faster implementation of the funds included in the first stimulus? Even with sagging economic indicators, there is a counter-argument to the call for a second stimulus, focusing on the need to efficiently and expeditiously distribute all the funds under the first stimulus. In fact, despite the fact that the ARRA was signed into law Feb. 17, 2009, only a small percentage of the infrastructure funds appropriated by Congress have been made available for obligation. For transportation projects, for example, the Department of
