As talk of economic stimulus grows, doubts about its effect

Kevin G. Hall and Renee Schoof | McClatchy Newspapers

last updated: January 09, 2008 07:25:13 PM

WASHINGTON — As President Bush and Congress weigh the need for a stimulus package to ensure that the slowing economy keeps growing, experts warn that there's insufficient evidence the effort is needed and that it could do more harm than good.

No one can yet say with certainty that the U.S. economy is about to enter a recession, defined as two consecutive quarters of negative economic growth. And by the time that becomes clear, a stimulus plan could be too late to do much immediate good.

"I just don't see anything useful getting done quickly, and the first half of the year is the critical period," said David Wyss, the chief economist for the rating agency Standard & Poor's in New York.