WASHINGTON, D.C. – Congressional Democrats are weighing an economic stimulus package that could have a significant effect on the economy—and retailers want a slice of the government pie. The most recent proposal suggests a $150 billion dollar plan that would meter out money to numerous sectors.
How does this affect retailers? Even the most stalwart of shops are angling for assistance—because any economic downturn takes money out of customer's pockets, and thus their own. The chief executive officer of Wal-Mart Inc., H. Lee Scott, told company analysts in late October that a second stimulus package "is clearly something that is needed with our customers."
The National Retail Federation agrees that offering relief to the general public will result in an increasingly healthy climate for retailers. "Increased consumer spending would create demand throughout all sectors of the nation's economy, from manufacturing to transportation to construction," says Tracy Mullin, president of the group.
Today's balloting may determine the fate of bailout initiatives-and, with it, the fate of small business owners. If Congress can't come to an agreement with President Bush before he leaves office in January, they'll be forced to negotiate with the newly elected president. While Senator Obama has proposed a $175 billion plan, Congressional Republicans have already rejected a smaller, $56 billion plan intended to fund unemployment benefits, highway repairs, and food stamps.
Sources: Bloomberg.com, The Business Journal of Milwaukee
