Area Expert Thinks Bush Speech May Stabilize US Economy

by KYW's John McDevitt 

The chairman of the Economics Department at Rutgers University in Camden, NJ  says President Bush's broadcast message on Friday outlining a proposed $145-billion stimulus package (see related story) sends a strong signal.  
 
Prof. Jack Worrall (above) says he hopes the president's message will quiet fears in the capital markets and help improve consumer confidence. And consumer confidence, he says, is essential for improvement of the US economy:

"Expectations definitely matter, because if people have poor expectations they are not likely to buy big-ticket items.  Businesses are not likely to make commitments either.  If they expect the economy to grow, they are far more likely to do it."

And that, he says, is far more likely to help the labor market.

Worrall says he expects  there will be bipartisan support for a short-term stimulus package. He says the fly in the ointment, however, will be in getting the package made permanent.