8/14/2019 Stimulus Receives Little Support

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Favor23%

Oppose57%

20%Not sure

B U S I N E S S P U L S E

Executive Summary:End of Q4/08

Little Support

for Stimulus

Plan

In the latest The Nicolet Bank Business Pulse CEOs indicatethey are generally opposed tothe Obama stimulus plan.

The study was conducted betweenJanuary 27 and February 3 just prior to the final passage ofthe economic stimulus plan inCongress. More than half (57%)of the CEOs indicate that they areOpposed to the plan; 23% Favorthe plan; 20% were Not Sure.

CEOs were also asked how familiar

they were with the plan: 18% saidVery Familiar; 35% ModeratelyFamiliar; 42% Somewhat Familiar;5% Not Familiar. Opposition ishighest (83%) among those whoare Very Familiar with the plan;support for the plan is highest(34% Favor) among those whoare Somewhat Familiar. Thereare no differences between CEOsof goods producing companies(57% Oppose) and service

companies (54% Oppose).

The primary factor that appearsto be of greatest concern amongCEOs in the NewNorth is thebalance between tax cuts and

spending in the plan. At the timethe survey was conducted, thebalance between tax cuts andspending in the bill was $550billion in new spending and $275billion in tax cuts - very similar tofinal balance on passage (whichwas $507 billion in new spendingand $282 billion in tax cuts).

Only 17% say the balance is abou

right; 57% say there should bemore tax cuts and less spending;20% say there should be equal taxcuts and spending; 6% say thereshould be more spending andless tax cuts.

Im not getting information; I'm not managing.John Torinus, President & CEO Serigraph, Inc

Do You Favor or Oppose Economic Stimulus Plan:

CEOs New North

http://www.nicoletbank.com/

8/14/2019 Stimulus Receives Little Support

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Importance of Various Elements of The Obama Stimulus Plan

Speed up depreciation on capital investments

Give business tax credits on past profits

Create jobs with spending on infrastructure

$500 tax cut for individuals; $1000 couples

$19 billion for science & technology

$68 billion for education

$80 billion for states

56%

37%

29%

24%

16%

13%

Percent Saying Very Important

How the Survey is Conducted

The Nicolet Bank Business Pulse is a Quarterly Study of CEOs and business leaders in theNewNorth (Brown, Calumet, Door, Kewaunee, Manitowoc, Marinette, Oconto, Outagamie, Shawano,Winnebago Counties in Wisconsin and Menominee, Michigan). This study was conducted betweenJanuary 27 and February 3, 2009.

Participants include: 27% in manufacturing; 24% in services; 18% retail trade; 4% wholesale trade;6% finance, real estate, insurance; 5% in transportation, communications, utilities; 6% in construction;10% in other industries. 20% have fewer than 6 employees; 27% have 6-25; 21% have 26-50;9% 51-100; 12% 101-250; 5% 251-500; 4% 501-1,000; 3% have 1,001 or more.

Questions to Dr. David G. Wegge (920) 217-7738; david@intellectualmarketing.com

There is no difference betweenCEOs of goods producingcompanies and servicecompanies regarding thebalance of cuts and spending.

CEOs were also asked howimportant various elementsof the stimulus plan are inproducing stimulus:

56% say its Very Importanttospeed up the depreciation ofcapital investments, allowing50% of the investments to bewritten off immediately;

37% say its Very Importanttoallow businesses to claim taxcredits on past profits dating

back five years instead oftwo years;

29% say its Very Importanttocreate new jobs with governmentspending on the nationsinfrastructure.

Other Very Important elementsinclude: 24% favor a $500 taxcut for individuals and $1,000for couples earning under$200,000 per year; 16% favorspending $19 billion for science& technology, universityresearch facilities, biomedicalresearch and wireless/broadbandexpansion; 13% favor spending$68 billion for education,classroom modernization,increased Pell grants and earlychildhood education; only 5%say spending $80 billion to help

states facing budget shortfalls is,Very Important.

CEOs lack confidence inPresident Obama and hiseconomic team to successfullyhandle the crisis. Less than onein ten (9%) say they have aGreat Deal of Confidence;30% have a Moderate level ofConfidence; 45% have Onlya Little Confidence; 17% saythey have No Confidence.

SummaryCEO attitudes regarding theeconomic stimulus plan appearto mirror the concerns thatRepublicans in the House andthe Senate expressed as thelegislation wound its way

through the congressionalprocess. Given the generalpolitical leanings of CEOs in theNewNorth, this is to be expectedOnce President Obama signs thelegislation we will have to wait,perhaps a long time, to determineif this legislation has the intendedconsequences that the Presidentand the Democrat Congressare hopingfor.

http://www.intellectualmarketing.com/