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2010 Stimulus Plan Effectiveness

In a recent survey amongst business executives, only a third actually thought there was a positive trend in the fiscal stimulus plan for 2009 and two thirds thought the 2010 stimulus plan effectiveness would be greater than the 2009 plan. Most commentators thought that the money had not been spent quickly enough and that the money should not have been dribbled out but ploughed into the businesses more effectively. More than 70% of the executives however did comment that the amount needed should have been less than what was eventually spent, and most thought this might be due to mismanagement or fraud.

Two thirds of the survey thought that the current fraud prevention packages in place were not effective enough, and that they would not stop fraud at all. This undoubtedly caused the price tag of the stimulus package to be higher than needed. The most common suggestion was that fixed pricing of procurement tenders should take place, with more healthy competition allowed to take place in procuring of services, especially government funded contracts. More than half also suggested more inspections of contractors was needed, with more options available for people to report such wrong-doings should any be found. Currently the facilities in place were not adequate enough in most opinions.

On being questioned with regards to the 2010 stimulus plan effectiveness, most thought that towards the end of 2010, major results should be seen and most were confident that the crisis would be averted should the stimulus plan be implemented correctly and not prone to wastage, as is often seen with government spending. With greater transparency amongst contractors, the executives argue that spending can be curtailed and the money be spent in other areas that would help boost the economy when it needs it the most. This boost needs to be strong and effective, and not as weak as it has been in 2009. The amount of money earmarked to be spent this year has not been spent yet, and many argue that the economy needs a big strong push to gain momentum, and not gentle nudges in the right direction.

Most of the survey’s respondents were of the opinion that President Obama did the right thing signing into law the stimulus growth plan, and many suggest that should this not have been done, the state of the economy would have been much worse off than what it currently is. Many however urge that more should be done for 2010. Rather than leave it too late, and action plan should be drawn up should this latest stimulus package not be successful.

The business executives that took part in the survey are responsible for some huge companies, with over two thirds of the respondents taking part in the survey working for companies and institutions with yearly revenue of over $100 million each. These are policy makers and know how the markets respond, and the government should take note what this survey means and how potentially the funding should be spent.

Tags: government, law, market, money, policy, price, revenue, Stimulus

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