Bush's Budget Could Deliver A Sharp Jolt To GrowthGene Koretz
How much fiscal stimulus is there in this year's federal budget? Economist Edward S. Hyman of International Strategy & Investment Group Inc. says that the Office of Management & Budget is projecting a 12% rise in spending (not counting outlays for the thrift bailout). Assuming real spending grows by 8%, Hyman figures that's enough to lift gross domestic product by 2% all by itself. "Add tax cuts, faster money growth, lean inventories, and some nice spring weather, and we could see a stronger pickup than expected," he says.