Barbara Moran on Stimulus Bill

What do you like about the huge stimulus bill signed by President Obama?

BM: The plan seems to address several areas of concern such as increasing the NOL (net operating loss) carry back period for small businesses, increasing the limits on section 179 (IRS property expense deductions) and relief from cancellation of debt to being deferred over a period of time. It also begins to directly address the problem of the housing crisis with some tax credits for purchases and aiding foreclosures by creating a vehicle for loan modifications. 

What don't you like?

BM: Unfortunately, I don't think it addresses enough of the needs to help small business or help those who would normally become business owners during a time on increased unemployment.  It does not really create much incentive for private industry to create jobs unless they are contractors for infrastructure improvements or energy programs ... many of those jobs may not be sustainable.


Is there anything else government should be doing to help us out of the economic mess we're in?

BM: I think there should be more emphasis on helping the housing market and assisting those who want to become small business owners. Small business employs two-thirds of the workforce in this country and consumer spending makes up two-thirds of the economic output in this country. We cannot look to only supporting big business, big government and big labor to fix the economy. We need to look beyond to small business, housing and pushing banks to put money back out in the market. We need to be concerned about too much intervention and artificially support the bottom. We need consumer confidence to increase consumption and production back into our economy.


From your point of view being in the automotive industry, do you think GM and Chrysler should be given a further bailout by Uncle Sam?

BM: I think the government does need to help this industry as we can't afford for it to completely fail. We may need consolidation. Either way the automotive industry must start to listen to consumer demands to bring American car purchases up in the future.

What do you think of the appointment of a kind of federal panel of "auto czars" to boss the auto industry?

BM: Like any plan, the idea has merit but it's all about the ability to execute. In addition, there is a big difference between appointing someone in a bankruptcy situation vs. a going concern. Even if that going concern is running on borrowed funds by the government. I don't think a "Czar" can be effective without the Big Three being willing to step aside to allow the "auto czars" to take over leadership of their companies.


What are you doing personally with your firm to survive during these times? Are you optimistic or pessimistic, and why?

BM: We are really tightening our belt on expenses and using technology to create efficiencies and force change where it needs to occur. In a way it is a real opportunity to move forward. We are taking a similar approach and working with our owners to be more efficient and really understand cost control. We are also looking at changing some of our operational plans and beta testing a more centralized approach in one of our markets. Traditionally we had a more individual entrepreneurial approach but we feel we need to find efficiencies in this economy and it is causing us to re-think our methodology.