WASHINGTON - THE slow impact of a massive US economic stimulus program approved earlier this year has prompted renewed talk about another effort to stem rising unemployment and jolt the economy from recession.

Stimulus never expected to do much this soon? 'WE BELIEVE the stimulus has had the impact that we predicted, which is job creation,' he said. For some, the impact is not enough to counter the economy's downward spiral. ... more

Only a small portion of the US$787 billion (S$1.5 trillion) authorised for economic stimulus in February has been pumped into the economy, failing to prevent a rise in joblessness to a 26-year high of 9.5 per cent.

'I don't think it is moving as quickly as anybody would have hoped,' said Mr Joel Naroff, an independent economist who heads Naroff Economic Advisors.

'I've been expecting to see ribbon cuttings all over the place on projects but we're not getting that.' US administration officials argue that the program needs time to be implemented but is already having an impact.

'The stimulus package is on its expected path in terms of the rate of change and in terms of putting money in the pockets of taxpayers,' Treasury Secretary Timothy Geithner said on Friday.

'There are very substantial investments in infrastructure products that have already started to take effect and will have their maximum impact on the economy in the second half of this year.' But some critics say it is moving too slow and that another stimulus is needed, while others argue it is an inefficient way to reinvigorate the ailing economy.

Some Republicans complained that President Barack Obama's administration sold the package by promising that it would cap unemployment at 8.0 per cent.

Obama aides counter that the economy was in far worse shape than they thought when he took office in late January.

Many economists say the unprecedented government spending plan, combining tax cuts and infrastructure spending, is needed to avert a deeper recession by compensating for some of the huge drops in consumer and business expenditures.

Deputy budget director Rob Nabors said the program had by early July 'obligated' some US$57 billion and that it has helped save or create 160,000 jobs - based on what would have occurred without the package. -- AFP