Does Stimulus Plan = New Jobs?

The $150 billion stimulus package is estimated to add 500,000 new jobs to the economy.  It is assumed that when people receive their rebate checks, that money will be spent, flowing back into the economy.  Businesses, especially retailers, will have to hire more staff to meet the increased demand.

However, many economists argue that businesses won’t hire permanent workers because many taxpayers will most likely quickly spend their one-time $600 rebate.  In addition to that, many companies are not going to change their hiring habits and procedures based on a one-time check to consumers.

According to CNNMoney.com, even economists who believe the stimulus plan will help the job market argue that it will be felt from limiting layoffs, not spurring hiring.

“I don’t think stimulus is going to cause a burst of hiring, it’s just going to prevent firing that might otherwise take place,” said Dean Baker, co-director of the Center for Economic and Policy Research.

There is even some concern that when taxpayers receive rebate checks, they will go to the mall and splurge so the rebate checks from Congress will go straight to China.

Do you believe the stimulus plan will bring new jobs?  Tell us what you think by adding to the comments below.

Credit: www.cnnmoney.com    Photo: www.dreamstime.com