Economic Outlook for 2009

By WBNG News

July 22, 2010 Updated Dec 9, 2008 at 8:59 PM EST

The US economy will experience a hangover like its 1982.

That's the opinion of an expert at Cornell University who gave a sobering look into 2009.

We continue our economic snap shot with a new survey on the hiring mood of the nations employers.

In the local area, we're seeing more thrifty shoppers and more interest in re-wear and resell.

Our coverage begins with Action News reporter Jessica Light on the governments role in reviving the economy.

"2009 is going to be a bad year."

No matter which way you spin it, this economics professor at Cornell University is not too optimistic about next year's economy.

Steven Kyle says in difficult times, Washington usually cuts taxes to boost spending.

He says that won't work this this time.

Instead of spending extra cash, people are saving it.

" If we want to get the economy moving again there's only one game in town and that's the government spending." says Kyle.

Or in other words, a stimulus package.

Kyle thinks the government should inject money into the nation's unemployed, who would spend it right away.

Or into state governments whose budgets are busted.

"We want stimulus shock and aw. There is a psychological aspect to all this too. We want people in the economy to be jolted out of pessimism." says the professor.

Kyle says government should spend big, at 1.3 trillion.

Without a stimulus plan, he predicts unemployment could rise to 9 percent and economic growth would actually drop to negative 1 or 2 percent.

The ominous outlook Scott MacKenzie was expecting.

"Kind of doom and gloom which isn't reassuring but I think we're doing the right things to address it. Recession is somewhat good because I think it makes people realize that money doesn't grow on trees and living on credit isn't the right thing to do." says MacKenzie of Geneva.

"Tighten your belt in and save as much as you can and not spend any more then you absolutely need to spend. I think its going to be a tough year for everyone all around." says Dennis Eckl of Weedsport.

A tough year loaded with tough decisions on how to get the economy back on its feet.

In Ithaca, Jessica Light, WBNG-TV Action News.

Even with government stimulus, Kyle would not expect the economy to grow in 2009.

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