Economics expert says infrastructure plan won't stimulate the economy

Omaha, NE – A Creighton University economics expert says President Obama's infrastructure jobs plan won't stimulate the economy.

The President announced the $50 billion dollar plan Monday. The goal is to create jobs rebuilding roads, railways, and airport runways. President Obama also wants a new air navigation system.

Ernie Goss is chairman of the economics department at Creighton University. He says the plan, if approved, likely won't create the jobs administration officials hope for. "I think that probably more of the goal of the President is to solidify the backing of the union construction workers and those who typically benefit more richly, say, from government infrastructure spending."

He's also opposed to the President's idea of a so-called infrastructure bank to fund the projects. Goss says setting up such a system would be difficult with a $12 to $14 trillion national deficit.

Goss compiles a monthly report of business conditions in nine Midwest and Plains states, including Nebraska and Iowa. He says stimulating the economy could best be done by extending the tax cuts of 2001 to 2003.

Wednesday, the President is expected to announce support for new tax breaks for businesses.