Texas Tech Professors Analyze the Package 
As the Texas Tech and Lubbock communities look into the effects of a potential recession for the U.S. economy, many weigh in on how the government is working to fix the recent downturn.
House Resolution 5140, a $161 billion stimulus package which would provide $600, or $1,200 for joint tax returns, in relief to American families is nearing approval by the Senate and president.
Though unwilling to label the state of the U.S. economy as a recession, Michael Frohlich, communications director for congressman Rep. Randy Neugebauer, said congress believes it needs to be addressed through legislation.
“Right now there’s indications of an economic slow down, and so what they did was come together — work together — to get ahead of the game before the economy started to take a serious down turn,” Frohlich said.
Frohlich said Neugabauer is pleased the stimulus package is part of a bipartisan effort, and supports the tax cuts and the rebates because they provide incentives for small businesses.
“He thinks it’s very important to provide incentives to businesses and small business because they’re the back bone of our economy,” Frohlich said. “When you give them incentives, it encourages investment and growth, which means hiring more employees, and so you’re simultaneously lowering the unemployment rate and building the economy.”
But Len Kiefer, an assistant professor of economics and geography at Tech, said he believes the economic stimulus package will not be affective.
Kiefer said the U.S. government feels pressure to do something during this time of doubt regarding the economy. Approving the stimulus package, he said, shows Americans the government is looking ahead and planning for the worst.
Kiefer said a similar package was passed in 2001 when the economy was struggling following the September 11 terrorist attacks which, according to Kiefer, was unsuccessful
However, Young Kyu Moh, an assistant professor of economics and geography at Tech, said he does not believe the stimulus package will be successful because politicians are trying to befriend the American public during an election year by issuing checks and incentive rather than truely fixing the economy.
“The Best way (to boost the economy) would be to raise taxes, but nobody wants to hear that, nobody wants to accept responsibility," Moh said. "The election is coming up and issuing checks sounds sweet”
Whether the current package will actually stimulate the economy depends on how Americans view the idea, Kiefer said. The government is expecting people to spend their checks, but Kiefer said individuals may, in fact, save the money they receive.
Kiefer said a good outcome of the actions of Congress and the Federal Reserve is the lowering of interest rates. Kiefer said the interest rates, which have been lowered two-and-a-half points, will benefit students taking out new loans, as well as home owners or those looking to purchase a home.
Kiefer said only time will tell what comes of the U.S. economy, as well as the success of the stimulus package.
But Craig Goodman, an assistant political science professor at Tech, said he considers the national discourse over the economy as allowing for the government to pass a bill that may just shift the fiscal burden elsewhere.
Goodman said the package will not be a long-term solution to the declining spending of Americans, believes the president and Congress are overreacting and that not enough is being done to derive a permanent solution.
“There are better things to be doing with our money than giving me something back that’s mine,” he said. “A permanent tax cut would be much better than giving me $500 in the short-term.”
While Goodman said he believes the U.S. economy is in need of a permanent solution, the Lubbock economy may not have felt the burden of economic decline as severely as larger cities have.