|UND economist sees good news for Grand Forks region, state|
University of North Dakota economist David Flynn says the fiscal stimulus package making its way through Congress would deliver many benefits to Grand Forks, the region, and the state of North Dakota.
The plan specifically promises $600 to single filer taxpayers making less than $75,000 per year and $1,200 to joint-filer taxpayers. In addition, there is a $300-per-child tax credit. Other provisions provide payments to service disabled veterans and other demographic groups.
“The economic impact in Grand Forks County could be as much as $32.5 million. This spending would typically support approximately 290 jobs,” notes Flynn, director of the UND-based Bureau of Business and Economic Research. “For the state of North Dakota, the economic impact could be as much as $351 million. The number of jobs supported from this spending level would be around 3,000.”
These estimates assume consumers spend the entire amount received and should be viewed as maximum impacts, notes Flynn, who also is an associate professor of economics in the UND College of Business and Public Administration. The estimates also don't account for additional impacts related to payments under the fiscal stimulus package to service disabled veterans and other groups.
“If history is any indicator, it is unlikely that consumers will spend the entire amount” that they'll receive under this package, says Flynn, who also is associate state director of the North Dakota Small Business Development Center. He says people might also spend the windfall on mortgage payments, credit card debt, and they might put some of it into savings.
“While these items—mortgage payments, etc.—do not create an immediate impact, they would likely support further spending,” Flynn says. “The result would be a longer time for the projected spending impacts to be realized.”
For more information about Flynn’s analysis of the federal fiscal stimulus package, see http://www.business.und.edu/bber