Spending could help slumping economy

OXFORD, Ind. (WLFI) - Purdue Professor Charlene Sullivan said the economy can improve, but main street has to get healthy first.

That's why she told Benton County Residents now is the time to start spending.

"Right now our problem is that people won't spend money. They're staying home," said Sullivan.

Purdue Associate Management Professor Charlene Sullivan said lack of consumer confidence is one major issue keeping the economy in a recession.

"You want people to save money but you don't want them to save so much money that the economy isn't growing and going," said Sullivan.

Benton County residents came to hear Sullivan's take on the stimulus package, unemployment and other issues affecting our economy. And some say they admit they are afraid to spend.

"I've been frugal but still spending but not quite as much as I was," said resident Tina Martin.

Martin said she is concerned about the economy, but thinks Benton County has a leg up compared to a lot of other parts of the country.

"Now that we have the windmills in place, I really believe that that's our hope, our future. I see wonderful positive things for us," said Martin.

Another resident, Kevin Wiley, said while he is optimistic about bouncing back from the recession, he is still worried about rising unemployment rates.

"I see a lot of people who are very good people who are losing and that's sad to watch. I mean they're just as good as anybody else, so they need jobs too," said Wiley.

Sullivan said Indiana has been hit hard with rising unemployment rates. She said more job losses can mean less consumer confidence, resulting in even less spending.

But she said when the stimulus package kicks in, we will start seeing benefits of it with time, and hopefully make a full recovery.