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[0:31] ..." I think significant improvement mainly in the there is -- way that government spending and state local spending. Creates systems jobs in our economy."...
[0:42] ..." The the current benefit calculated by the Wall Street Journal for people who earn under the the point where they start to lose benefit from the the tax cut because of making"...
[3:33] ..." specific. Aspect of the economy that is an automobile industry and today General Motors and Chrysler after present their plan is to the government. To justify the billions -- they've already received and try to get more money"...
[4:50] ..." and putting their ability into -- months to urge you -- or Chrysler it's just. These forward drew the market just to -- Europe all of the auto makers stage to survive and in anything"...
[5:12] ..." overall you're not particularly enthused about either the bailout of of the Big Three or debate to at this juncture. Or the stimulus plan the -- mentioned taxpayer money and -- of their doctors Sinai 787."...
[0:00]" The president goes to Colorado today to sign the economic stimulus bill but. What sort of effect will it have and how soon on the economy joining us. From a decision economics -- Boston is economy cricket expert doctor Allen Sinai and what's your take on this doctor --"
[0:17]" Well it's a pleasure to help but I don't think anyone should expect. A lot of help. For this planned for the economy soon. By the second half of the year will see some I think significant improvement mainly in the there is -- way that government spending and state local spending. Creates systems jobs in our economy."
[0:42]" The the current benefit calculated by the Wall Street Journal for people who earn under the the point where they start to lose benefit from the the tax cut because of making too much money. And that's only 75000 dollars -- A single worker 150000 for a -- the weekly difference in their paycheck is going to be seven dollars and 96 cents. Is that really going to make it different ticketed -- to kick start the economy."
[1:09]" It's just can't always expect economy could be kicked started the suspect happened. But it was going to get. Helped and consumer spending will in the aggregate improved. To eight did touch a week. It will probably most refused to wear the -- some which is very light uses that money by consumers."
[1:31]" But the last time that the government. Headed out rebates have done it twice now 2001 and last year. That's exactly what happened people who put the money in the bank where they used it to pay off debt and I didn't do much to. Create jobs as it."
[1:46]" That it. Creative and at Columbia. Private sector jobs -- think they -- going to continue. Another three to five months who -- a lot of chips in the permits to where we will get jobs creation and that. Can happen fairly soon gorgeous out safe. Will be the federal government level and in the states and localities to get money. From the government -- and keep people that might otherwise have let go and probably at some people to -- minister goes -- we will see some ups improvement I think the second quarter. And just a couple of monster treatments in the construction. In terms of construction workers who circuit go to work and some of these projects."
[2:28]" And that is the immediate effect a longer term and this is 787. Billion dollars. What's the five year result of -- for example."
[2:38]" I do Milosevic are listed to your client it's Serb it and 22 years since the 2011. Under vote for increases in taxes. That decreases -- sister to keep your play every idea is to jump start because they were these two years. There -- other quantitative study assured that this here. I did GDP basis which were strictly as a read a lot individuals GDP is a bit more assist. But you have to -- economist talk about. GDP this year that might -- a percentage point. Broke in terms broke compare two otherwise. Editing and establish your from being that being a negative year GDP next year. Next year couple percentage points a big impact of the program is going to be in 2000 to help prevent 2011. We're going to go back down because we won't have any stimulus solicit -- more."
[3:32]" Peninsula once specific. Aspect of the economy that is an automobile industry and today General Motors and Chrysler after present their plan is to the government. To justify the billions -- they've already received and try to get more money GM says this it needs four billion immediately. Or could face bankruptcy. And apparently visit the winds are blowing GM's way of a crisis going to have to wait. Evidently. Is that the best thing to do. -- those two auto makers or is bankruptcy court reorganization. The free market perhaps the most realistic way to sort of --"
[4:08]" Gently automotive market you -- well why is terrible global recession that we're going to choose the worst in history worst ever. And it is really very profound so the outlook for the next couple years for auto sales this is just terrible. And that kind of situation I cannot see how we will -- anything other than have managed bankruptcy. At least one of auto makers. It's and I think that's what's going to happen that's not the -- thing we've we've got through an airlines we've got through and other industries still it -- But I think that's. The best way to go well ultimately -- more taxpayer money by doing it that way. Then to keep and putting their ability into -- months to urge you -- or Chrysler it's just. These forward drew the market just to -- Europe all of the auto makers stage to survive and in anything near the terms are. We're going to ask directly go into a separate -- bankruptcy again as that the worst think it's tough. Not the worst -- that could happen I think there should be the best."
[5:12]" So overall you're not particularly enthused about either the bailout of of the Big Three or debate to at this juncture. Or the stimulus plan the -- mentioned taxpayer money and -- of their doctors Sinai 787. Billion dollars. That's at 700 billion already allocated to the financial rescue plan who's going to -- back and positive be paid back."
[5:38]" The answer is implicitly -- we are the taxpayers. We're going to run. This year almost two trillion dollar deficit that some misfortune and GDP. We've never seen anything like except that World War II so. Served very very tough problem. In terms of the -- we're going to have to sit -- We're going to have to buy it directly and indirectly the US treasury issues. That cover. Those deficit the deficit based abroad that means we're going to have to spend less and save more. We're just accurately states. In a tough position. With need recruit people what are resumes for a long time."
[6:21]" Doctor Allen Sinai of decision economics here and -- and thanks very much to actually."
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