Another Economic Stimulus?


We believe the impact of the American Recovery and Reinvestment Act of 2009 will be long-term.  Even with pronouncements that the money must be spent quickly, it will take much time for money from the ARRA of 2009 to make its way into vendors’ bank accounts. 

Meantime, there’s already talk of another economic stimulus law.  It’s early stage, but as you can imagine, the talk coincides with party affiliations.  Stateline.org, which tracks state government affairs, has asked leaders of the National Conference of State Legislators whether there should be another economic stimulus law.  The President-Elect, a Republican, told Stateline.org that the nation cannot afford another economic stimulus law.  The current NCLA President, a Democrat, says the federal government is the only institution that can “keep us out of a depression”, so it’s too early to tell whether another economic stimulus will be needed.

Whether there will be another economic stimulus law or not, the current one is still in its early stages.  Its impact will be long-lived, and buyers and sellers should act accordingly.  Sales and purchase cycles will still be long.  Value propositions must be strong.

At least there will be sales and purchase cycles – not so true in other sectors of the economy.

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