Back in the United (and Stimulated) States of America. Woo-hoo! After over three weeks of overseas travel, as well as domestic vacation where I just didn't really care what was going on, I've returned to reality and removed my head from the sand trap to take a look at where we are in our quest toward economic recovery and growth. However, I'm tempted to run back to the airport and buy a one-way ticket to Anywhere But Here.
I was expecting to come back to a country pumped with more stimulants than a first grade honors English class, but what I've found is something that more closely resembles a mandated Saturday morning alcohol awareness seminar that even a well operated meth lab couldn't bring to attention. What happen to our $800 billion worth of Adderall and Ritalin that was promised to bring our sleepy, dreamy economy back on its toes and actually participating in the 7:30 AM Pledge of Allegiance? Well, I decided to do a little research and see where we're at.
Just to evaluate where we are, I found that the US unemployment rate is at a gaudy 9.5%. However, construction industry unemployment according to economajic.com stands at 17.4%, however this is off it's recent high of 21.4% in February '09 which is at least movement in the right direction.
As far as construction billings go, the data is not so promising. We're still at declining levels and while the decline seemed to be slowing for a while, the latest numbers are showing an increase in spending declines. Econoday.com provides the following chart of construction spending for the past two years. So what about our much anticipated and much needed stimulus package? Well, the following chart from Recovery.gov shows the timeline for funds being made available for the next seven years. The majority of this money will be dolled out in fiscal year 2010 which starts October 1, 2009, so we've yet to see the flood gates open and we are painfully awaiting its arrival like an avid West Virginia kayaker would before opening day of Gauley season where the dam controlled flow of the Gauley River is allowed to run wild.
So why does the majority of this money come out in FY 2o1o and not immediately? In my opinion, it's an effort to avoid fraud and corruption that could easily be associated with a massive flood of federal money into a greedy and hurting economy. However, this is still a federal spending plan that dwarfs anything preceding it, so a little patience now may pay off in the long-run. I'm hopeful that this plan will not only provide a solid backlog of construction work for the next decade but will also provide some much needed infrastructure and capital improvement that will help people work and live better which could also help our country economically.
Just keep chanting - The USSA ain't far away.
http://www.constructonomics.blogspot.com
Get your Economic Stimulus Package Bill news at iTaxRebate.com
No comments:
Post a Comment