NEW YORK (CNNMoney.com) — The job market and economy need a serious jumpstart, but the stimulus program likely won’t be able to do it.
This summer will be the peak of the $787 billion stimulus program in terms of creating jobs and pumping money into the economy. In fact, the Obama administration is calling it the Summer of Recovery because more than 30,000 miles of highways are being improved, more than 2,800 water projects have been started and 120,000 homes will be weatherized.
After that, it will be a downhill slide for stimulus even as the economy is expected to continue sputtering.
“It’s very hard to discern any impact,” said Brian Bethune, chief U.S. financial economist for IHS Global Insight.
Shifting to stimulus projects
When it was passed in February 2009, the nation’s largest stimulus program focused on sending aid to struggling state governments, providing tax relief and augmenting the safety net for the unemployed and low income.
Some 57% of tax benefits and 60% of entitlement money has already been paid out, according to federal data. But only 43% of the funding for contracts, loans and grants has gone out the door.
Now, however, the focus is shifting to infrastructure and other projects that will drive job growth, according to the administration. For instance, President Obama Friday will announce 66 new stimulus-funded broadband projects nationwide that officials says will create about 5,000 jobs immediately and spur long-term economic development.
The Recovery Act’s greatest impact lies ahead, according to the administration.
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