Did You Know That 35% Of Stimulus Remains Unspent?

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To those who claim that the stimulus has failed, well, many serious economists and the the CBO say that without it we’d be in much worse shape. And even those who opposed it are wishy washy about it effects…which basically means it helped.

Regardless, a large chunk is still waiting to get into the economy and here’s more on what that means for the US and investors, from Clusterstock:

Despite talk about how the U.S. economy will soon lose the support of economic stimulus, or that stimulus ‘hasn’t worked’, U.S. fiscal stimulus for the economy is far from finished, and this doesn’t even consider additional measures being debated. […]

This $278 billion will likely be delivered by the end of 2010, and it’s a huge sum for just four months. Thus the remainder of 2010 will continue to be supported by stimulus, and investors should take note. 2011 is when the economy will lose its training wheels, though an additional round of economic initiatives currently being debated could push the timeline back even further.

Couple this with the tax breaks for small businesses and the additional infrastructure spending that Obama is proposing and we’re looking at a situation where we’ll hopefully see unemployment drop below 9% by the end of winter. I know that’s 1% off what Obama and company said it would be at, but how can you fault them for not anticipating that the economy was in worse shape than they thought.

And what about those on the other side that said this thing could fix itself? Again, nearly every serious economist who doesn’t blindly follow the invisible-hand theory knew we need stimulus of some sort and that we would have been FAR worse off had we a) not done anything or b) just went with the tax cuts Republicans were proposing since those are proven to be far less stimulating to the economy than direct spending.