A group of about 100 CEOs has urged President-elect Barack Obama to "quickly implement" a stimulus package of roughly $500 billion. The CEOs said the package should emphasize investment in infrastructure, including roads, bridges and other construction, as well as alternative energy projects. Their second priority: improving education.
Economist David H. Wang has extracted positive and negative threads from the CEOs' statement.
"On the one hand, the added CEO support will be welcome, I am sure, by the Obama Administration, as it builds the case for its stimulus package," Wang said.
"On the other hand, the fact that CEOs are calling for government spending, which is not a traditional CEO stance, tells you about the seriousness of our economic problem," Wang said. "The U.S. economy is in rough shape and there are few signs of improvement."
Fed now sees yearlong recession
Further, that rough shape was underscored Wednesday when the U.S. Federal Reserve, in the minutes from its October 28-29 meeting, said it now expects the U.S. economy to perform more poorly in 2009 than it did earlier this year. Without using the word 'recession,' the Fed said it "generally expected the economy to contract moderately in the second half of 2008 and the first half of 2009, and agreed that the downside risks to growth had increased."
"In other words, the Fed is forecasting a recession lasting about one year," Wang said.
The Fed now expects U.S. GDP growth of 0.0-0.3% in 2008 and between -0.2% and 1.1% in 2009. In June, the Fed had expected 1.0-1.6% growth in 2008 and 2.0-2.8% growth in 2009.
President-elect Obama has said if a stimulus package is not approved by the lame-duck U.S. Congress, it will be the first thing he gets done as president of the United States.
Regrettably, Wang said no recent data he's seen suggests that President-elect Obama should change that plan. "We are in for a longer than expected recession, so the sooner a large fiscal stimulus package is passed, the better," he said.
Economic Analysis: To be sure, the group of 100 CEOs does not represent the entire Fortune 500, but they still form a politically-important lobby -- one that will speed passage of the needed 2009 fiscal stimulus package.
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Reader Comments (Page 1 of 1)
11-19-2008 @ 9:29PM
dado said...
just what these pukes need free money! they need to work 1 day like a real american.damn bums.
11-19-2008 @ 11:50PM
Trace said...
wow... How did they find 100 CEO's to stand up for something that makes since.
The CEOs stance sounds noble. "The CEOs said the package should emphasize investment in infrastructure, including roads, bridges and other construction, as well as alternative energy projects. Their second priority: improving education."
The CEOs realize that the only way their companies make money is if Americans spend money. And, the only way Americans spend money is if they all have jobs. Pretty simple... right?
11-20-2008 @ 12:56AM
shawn said...
Let's see....CEOs are supposed to know how to run a business. What happened?
11-20-2008 @ 3:15AM
BHarrison said...
Trace, so you think this sounds good, huh? Well, since these guys take their exorbitant unwarranted salaries, and other compensations "off the top" of the corporate income, it sounds like they are looking for something to PROP UP THEIR INCOMES more than for the "little guys' income". These CEOs and their uppermanagment are still in their positions raking in millions and tens of millions of dollars in unwarranted compensations. Yes, people have to be employed to have incomes "to spend and buy"; but let's first cut out the exorbitant salaries and comps for the incompetent managment who caused this econmic mess.
11-20-2008 @ 3:30AM
BHarrison said...
If the President of the USA only makes approximately $350,000.00 per year, then why should any CEO make more than a million a year. The CEOs of large corporations are MERELY PAID EMPLOYEES; and, as we've seen, they have been doing a horrible job, and then walking off with millions, tens of millions, and even more in compensation. It really doesn't make sense. And this is to the detriment of both the stockholders, the REAL OWNERS of the corporation, and to the employees. Overpriced "salaried" CEOs and management must be cut out of our economic system.
11-20-2008 @ 4:49AM
lou said...
Why don't these CEOs put up the money they have been scamming for years. They don't need tax payers money for a stimulus. They have more than enough to go around. Do they want this fiscal stimulus so they can put a few more billion into their off-shore bank accounts? To heck with them!
11-20-2008 @ 8:01AM
Lewey said...
Hey, IOU. I think you have it right!
11-20-2008 @ 8:46AM
neuticles said...
Whatever happened to making a sale for profits? You offer a superior product, provide outstanding customer service and charge a responsible price and customers are happy.
11-20-2008 @ 9:36AM
Virgil Bierschwale said...
I would like a list of those 100 CEO's.
My instincts tell me that every one of them will end up on the "Wall of Shame" at http://www.KeepAmericaAtWork.com
If they really want a stimulus, all they have to do is bring our jobs home and we'll buy so much stuff that our retailers, manufacturers and raw material producers will be smiling for years.
Virgil
http://www.KeepAmericaAtWork.com
12-23-2008 @ 6:36PM
WILLIAM said...
FORTUNE 500 BONUSES ARE AT STAKE?? THEY KNOW THE ECONOMY WILL GET VERY BAD. AND PEOPLE ARE INVESTING STOCKS IN THESE MEGA RICH? PULL OUT NOW!!!