President-elect Biden working on new stimulus plan, economic expert weighs in

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WICHITA, Kan. (KSNW) – Less than two weeks until inauguration and President-elect Joe Biden says he is already working on a trillion-dollar stimulus plan.

Jeremy Hill, director of the Center for Economic Development and Business Research at Wichita State University, said the effectiveness of the relief package will depend on the details.

“How much we spend and how effective those tools are? How much is needed or how much is wasteful?” he said.

President-elect Biden is expected to reveal details for the new stimulus plan in the coming week leaving many hoping for some extra cash in their pockets.

“Savings rate went really high that first round. Showing that it was not very effective. There’s a lot of people who just held on to cash,” Hill said.

Economic expert Hill believes individual checks would not be the most effective use of money.

Instead, pointing out other industries in need of relief.

“State and local governments, I see a lot of concerns, but it also goes for schools. I see a lot of concerns there. We’re at a point where we might have to cut a lot more or raise a lot of taxes, and it can be very devastating,” Hill said.

Hill believes places where stacks of cash could help most include small businesses on the brink of bankruptcy, unemployed households needing resources, and hard-hit industries.

“That is important to overall society that we need, like air travel. We need to keep them open. We need to keep them moving forward. We don’t want to lose our critical advantage in the global economy.”

He is now asking law makers, what’s more important the relief now or cost moving forward?

“We are paying our future generations retirement out of this. There are future generations potential, we’re spending it today to keep the market open, and we got to be wise about that dollar,” Hill said.

Regardless of the final plan, Hill said in order for the economy to recover people need to spend to keep the economy going.

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