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When Stimulus Spending Winds Down, Will U.S. Businesses Step in For Tapped-Out Consumers?

[Editor's Note: This is Part II of a two-part story that looks at the prospects for the U.S. economy in 2010. It's part of Money Morning's annual "Outlook" forecasting series. In the days and weeks to come, watch for additional installments addressing the 2010 outlook for gold, oil, banking, foreign markets and other key topics. Part I of the U.S. economy forecast story appeared yesterday (Tuesday). ]

It's no secret that government spending has been fueling much of the growth in the $14.2 trillion U.S. economy. And if consumers aren't ready for the handoff when that stimulus spending winds down – and they certainly don't appear to be – it will be up to the U.S. business sector to carry the ball.

And it's not at all clear that Corporate America is ready, willing or able to fulfill that role.

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  1. so change to export economy | November 18, 2009

    time for usa businesses to convert themselves to exporters, dont hold your breath on the 'american consumer'.

  2. William Patalon III | November 18, 2009

    Excellent observation …. and very well stated….

    Make sure to watch for the rest of our "Outlook" series. Next up is Gold…..

    William Patalon III
    Executive Editor
    Money Morning

  3. Don Fishgrab | November 18, 2009

    Businesses can't pick up the tab. Most of them are struggling to break even. Because customers don't have jobs, they can't buy. Because business don't have customers, they can't create jobs. The more government and banks take in fees and taxes, the less businesses and customers have to work with. The so called jobless recovery is only a recovery for government and financial institutions. It is still receding for the rest of us.

    Until business has funds to hire there will be no real recovery. Real tax cuts, while increasing the Federal debt, and forcing reductions in programs would be more directly beneficial than the stimulus packages. Such reductions appear to happen only when people are forced to near revolt as the governing leaders are busy maintaining their status.

  4. Athar | January 10, 2011

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