Economists in survey back stimulus bill

NEW YORK, Oct. 28 (UPI) -- U.S. economists strongly support a new economic stimulus bill that could include tax reductions and spending on infrastructure, a recent survey said.

The USA Today survey of 43 economists found 32 indicating support for a new stimulus package. Ideas for the bill included tax cuts, spending to create jobs and extensions of unemployment benefits, the newspaper said.

"It won't keep us from going into recession," PMI Group chief economist David Berson told the newspaper. "But it may make the difference in preventing a worse recession," he said.

Nearly a third of the economists indicated tax cuts would be the most effective strategy for boosting the economy, the newspaper said.

Extending government assistance programs would put money into circulation quickly. Infrastructure projects that create jobs would also put money quickly into a spending cycle. Economists also suggested giving homebuyers a tax break to help them stimulate the housing market, USA Today said.

Others advocated for the federal government to give money to state and local governments.

"It would help keep them providing basic services and help keep people on their payrolls," Mission Residential chief economist Richard Moody said.