Prof's Midwest economic index slips as bankers in 11 states see little impact of stimulus package

The economic stimulus package does not appear to have helped rural communities in the Upper Midwest so far, and many residents are still hesitant about health care reform, according to the latest monthly survey of small-town bankers in 11 states by economist Ernie Goss of Creighton University in Omaha.

Goss said his Rural Mainstreet Index declined for the second straight month. “None of the bankers, and that's zero, reported large and significant impacts. In fact, most of the bankers report that the impacts thus far have been none to very, very modest ... so, we're not seeing much of an impact from the stimulus package," Goss told told Pat Curtis of Radio Iowa.

Results indicate a shift from the ‘growth neutral’ trend of the index, which Goss attributes to low crop prices. “The RMI has remained below growth neutral for 17 consecutive months,” he said in his report. “After appearing to bottom out earlier in the year, the index, which gauges overall economic activity, is now trending downward.”

Survey recipients were also asked about proposed taxation of the wealthy to pay for a reformed health-insurance system, and 70 percent disagreed. Goss said that means rural Americans have "some real concern about how the new health care plan is funded and where that money comes from." (Read more)