There was a short discussion on Spend Matters a couple of weeks ago in which the effectiveness of the economic stimulus package was debated. I had posed the question about whether the last stimulus package worked but the community did not respond.

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Fortunately, an article in today’s Pittsburgh Post-Gazette provided an answer, saying:

“Some academic research dating back to the previous round of tax rebates in 2001 suggests households will spend at least a portion of this rebate on consumer durable goods, which can have a stimulative effect on the economy.

“‘We expect to see most of that stimulus in the second half of the year,’ said Robert Dye, a senior economist with PNC Financial Services Group, Downtown. ‘History shows there will be a boost to consumer spending because of this. Some will go to debt repayment and savings, but a good portion will go to consumer spending.’”

Of course, history is not a reliable indicator of future performance. But, in my opinion, if it worked before, it’s worth trying again.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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