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Understanding the Federal Stimulus Package
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The Baruch Business Report offers a conversation between John Elliott, Dean of Baruch's Zicklin School of Business and Terrence Martell, Zicklin's Saxe Professor of Finance and International Business. The discussion weighs the merits of the proposed stimulus package, particularly the economic effects of individual and business tax credits. The stimulus package includes significant funding for infrastructure investment, which Professor Martell calls a "fundamentally good idea.� Dean Elliott suggests that the package's proposed protectionist features—an insistence that the materials used in constructing new infrastructure be produced in the United States—may cause other nations to bar the use of U.S. imports. Both Dean Elliott and Professor Martell also express concerns about the size of the debt being assumed by the federal government and the risk of future inflation it creates.
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