According to an article in the Star-Telegram, the $787 billion stimulus plan promises to save or create 3.5 million jobs nationwide. Many of those jobs approximately 269,000 could go to Texas. But will it be a long-term fix? Can it offset the large number of job losses that are predicted this year? Many experts think not.
The article quoted Cal Jillson, a political science professor:
“This will provide paychecks to people who otherwise would not have had jobs, and those paychecks allow them to buy things and create more demand,” Jillson said. “It lets the private sector catch its breath. It’s a way to create a bottom to the number of jobs being lost so the economy has a chance to begin growing again.”
But many other experts suspect that not only is the stimulus package a temporary fix; but that it is too little, too late and won’t be enough to balance out the millions of job losses expected for 2009. Also, many of the jobs created will be “shovel ready” literally, meaning many involve more manual labor positions, which are lower paying.
Click here to see the list of projects that will commence due to the stimulus funding. Many who have experienced job losses are not qualified for those types of jobs (realtors, mortgage brokers, support staff etc.). And if they are, they are not financially in a position to take the significant pay cut required.
Many workers who have suffered a job loss are swimming in debt, facing foreclosure and will probably need to file bankruptcy if faced with taking a job that pays significantly less than what their bills, debts and everyday expenses require.