Emotional rescue.

• Author: Mooneyham, Scott
• Position: CAPITAL GOODS

For those who frequent that strange piece of architecture known as the North Carolina Legislative Building, it would be easy enough to conclude that the $789 billion federal stimulus package is all about saving state government. Recent talk there has revolved around what North Carolina's share of the stimulus money will do to help close a budget gap believed to be approaching $3 billion. Not including the tax breaks going to individuals and businesses, North Carolina will receive $6 billion during the next three years. About half will end up in the state's operating budget.

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But this money was to boost the economy, right? Does funneling billions into government programs accomplish that? Ask 10 people, and you may get 10 different answers. Ask 10 economists, and you could face the same predicament.

Most economists believe the plan will help stabilize the economy, even if it doesn't prompt a recovery. Mark Zandi, chief economist for Moody's Economy.com, wrote recently that he believes the jobless rate nationally will be 2 percentage points lower at the end of 2010 than it would be without the stimulus plan. Closer to home, N.C. State University economist Mike Walden agrees that the federal infusion of money into the state should mitigate the effects of the recession. "It doesn't take us back to growth, and it doesn't turn the economy around," but he expects it will create some much-needed jobs, at least in some sectors. The White House estimates 105,000 jobs will be created in North Carolina by the federal legislation. Walden thinks that number is probably high but says even 70,000 would be significant.

A good chunk of them will be in construction. The state will be pulling down $775 million in highway-construction money. An additional $131 million will go to other transportation projects. Town and city governments in North Carolina will receive $138 million for sewer and water projects. There's also $136 million for public housing and housing assistance. All ultimately will flow to private contractors.

You can look at those numbers in different ways. North Carolina already is spending almost $3 billion a year to build and maintain roads. That $900 million in new transportation money comes to less than 25% when thrown into the pot, so the stimulus plan hardly will be rebuilding America's infrastructure, as some supporters claimed early on. But the Federal Highway Administration estimates that every $1 billion in road...