Cornerstone University Weary of Economic Bailout. Professor Stamm Gives Thumbs Up.

President Barack Obama’s economic stimulus plan is supposed to boost a U.S. economy that’s in the global dog house, but a closer look at the package leaves the Cornerstone campus conflicted.

Joe Steggs, student body president-elect, is strictly opposed to the plan.

“I’m a laissez-faire – hands off – person,” Steggs said. “I’m completely against 90 percent of social programs. Our competitive market has gotten America’s economy to where it’s at today and social programs are just bringing it back down.”

Conservatives argue the estimated $819 billion stimulus package is full of political agendas, including $248 million for furniture for the department of homeland security, $25 million for FBI salary increases and $75 million for a smoking cessation program.

The package also includes $125 billion for education, but while many people approve of that part of the stimulus package, CU junior Ron Kincer wants to make sure every penny is accounted for.

“It’s not as much the money that’s going to make improvements as having good people use the money wisely,” he said. “You can give a school down the street a ton of money; if they don’t use it for the right things it’s just a waste.”

But while some criticize the spending, Brad Stamm, professor of business at Cornerstone and an economic expert, said it is necessary to recharge the economy and avoid a greater fall.

“What’s the likelihood they’re going to spend even a tax cut?” Stamm asked. “That’s why the government is going to spend, because it would mean a direct infusion into the economy. If the government spends directly that’s money right into the economy that’s earned. It’s spent money. It will have a direct and immediate impact.”

Some conservatives have pointed to the economic recession of 1982 and said the economy was worse back then before recovering. Statistically, unemployment rates, mortgage rates, prime rates and tax rates were higher compared to 2008, but Stamm said it’s not that easy.

“There’s no economist who wouldn’t say that this is worse than 1982, because it goes way beyond unemployment,” Stamm said. “Very legitimate economists would say this is much worse than 1982. Early in every decade we had some kind of recession, but this is certainly not your typical one.”

“In today’s economy the unemployment is coming from different areas,” he added. “Now it’s reality. Now it’s financial. Even the health industry. Now we’re losing jobs in other sections beyond manufacturing. That’s what you don’t want. It’s broader. It’s a much broader base than what it was 26 years ago. This is different. This is broader and longer and deeper.

“So you got to be carefully looking at numbers. You don’t want to look at just one page and say it’s worse or better. It’s now hitting the service industries which you don’t want to see. It’s what kind of jobs were lost, what kind of industry, how many discouraged workers there are.”

One thing most people agree on is that the economy is struggling, particularly in Michigan where soon-to-be college graduates are nervous about finding jobs. But Kincer said he isn’t worrying about that right now.

“That’s a concern, but being a Christian I’m just relying on faith at that point,” he said. “If I can’t do anything at all I can have faith that everything’s going to work out.”

Kincer believes both parties can come to an effective compromise by letting the nation vote on what should and should not be included in the package.

“I think they should do a nationwide poll where they list all the options that they want to put in the package and have the nation vote on it, because it’s important,” he said. “What’s wrong with allowing us to vote on it?”

That sentiment echoes the unrest of many Cornerstone students and politicians alike, who believe the U.S. needs a change, but can’t agree on how to do it.