We've created a Forum question for our readers to provide their perspective and opinion about the impact of the American Recovery and Reinvestment Act, aka the Stimulus. Here's the situation we're asking you to comment on:
National economic news continues to be mostly downbeat, with the occasional positive indicator popping up from time to time. Some recent news reports have indicated that, so far, stimulus funding--such as for highway projects--has been trickling out at a slower-than-expected pace. At the same time, agencies across the country are awarding a much-increased number of projects to contractors for future construction.
All of which begs the following questions: Is the Stimulus doing what it was intended to do and improving the economy? Is it starting to provide opportunities to the regional construction industry? Is it too early to tell? Will it eventually live up to its promise? Or will it fail to have the intended impact and prove to be as its critics contend, mostly a long-term negative? If people think it's not working, what about all of the jobs that are supposedly being "created or retained" on upcoming highway projects?
The first person who responded to the Forum question said: "No, it's not (working) because it's not getting from the banks into the market. The banks are not lending the money needed for general contractors to be able to pay their subcontractors. Without payment for work completed, subs have insufficient funding to pay for materials to start new projects and to pay their vendors, who in turn need the money to buy materials."
What are your thoughts? Join the discussion!