Obama's Stimulus Package May Help--Or Not

Making a profit in local construction and development should continue to be as complicated and difficult this year as the past year, but Metro East political, business and labor leaders believe President-elect Barack Obama's economic stimulus plan could help set the tone for recovery. That was the main thrust of yesterday morning's Construction & Development Forecast organized by the Leadership Council Southwest Illinois.

U.S. Congressman Jerry Costello said that getting the nation's economy moving again will be "a massive undertaking," but he believes "the stimulus package will work." Costello--who flew overnight from the nation's capitol to attend the meeting in Collinsville's Gateway Center--said that he is "pushing very strongly to spend as much or to get as much into the package as we can to improve our infrastructure."

Ken Simonson, chief economist for the Associated General Contractors of America, said that support for the plan would add $2.6 billion to Illinois' gross domestic product and sustain 20,000 jobs. He foresees a rise in single family housing starts later this year, but he also predicts a sharp drop in creation of new multi-family units and commercial buildings.

Meanwhile, across the Mississippi River in St. Louis, economist Arthur Laffer was telling the Association for Corporate Growth that the stimulus program won't work.