Economist Credits Stimulus for Bringing us Into Recovery

October 29th, 2010 by Editor

“I’m hoping for some good news,” said one attendee at the start of McGraw-Hill’s Outlook 2011 Executive Conference, which was held yesterday and today in Washington, D.C. A variety of economic experts offered their forecasts from the economy to housing, and all seemed to agree that residential and commercial construction will improve in 2011.

Kathleen Camilli, president, Camilli Economics, outlined the economic outlook, which she described as slow, but pointed out that “we are well into the recovery.”

“We live through the booms and the busts and that’s what makes capitalism so fantastic,” she said.

She also addressed the federal deficit and while the numbers may seem alarming she points out that deficits are mostly cyclical and “it will be interesting to see the next phase of the Obama plan.”

“The situation would have been much worse if the stimulus package did not go through,” said Camilli, who added, “it’s not enough.” She also wonders why Obama has not been more forthcoming with his plan regarding possible future stimulus funds.

Following her presentation someone asked, “If we were to see another stimulus package how much would it take?”

“I can’t give a number, but more infrastructure spending would help and would act as a multiplier,” said Camilli.

“Whether it’s politically palpable or not remains to be seen.”

“Weak unemployment is hurting construction. That’s why you’re here. The multiple effect is large.”

Regarding construction spending she added, “The money is there, but these entities have to be given incentives to invest.”

Stay tuned to for further stories on the conference and additional forecasts.

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