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Governors disagree on stimulus effect

Oct. 11, 2009 at 1:23 PM

WASHINGTON, Oct. 11 (UPI) -- Two Midwestern U.S. governors say they have differing views on the effects of federal economic stimulus measures.

Democratic Michigan Gov. Jennifer Granholm said on "Fox News Sunday" that President Barack Obama's program to funnel taxpayer dollars into hard-hit local economies has helped diversify them, while Indiana Republican Gov. Mitch Daniels asserted the stimulus hasn't improved the United States' economic condition.

"Clearly, the stimulus has helped, although, of course, unemployment is at a ridiculously high level," Granholm told Fox News. "And in Michigan it's a unique circumstance because we are in the middle of both an auto recession and we've been sort of a one-industry state for 100 years. So we are really focused on diversifying."

A "great example" of the diversity made possible by the stimulus, she said, is the development of batteries to power electric vehicles.

Daniels, however, said the benefits of the federal spending have been spotty at best.

"It's coming very slowly, if at all," he told Fox News. "I didn't oppose the idea of it, but I don't think you can point to much effect so far. ... Government spending doesn't create jobs, doesn't create wealth."

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