Slooooow recovery expected

Economic forecaster Robert Genetski warned more than 500 members of the suburban business community Thursday to expect to grapple with the economy for a while longer.

“The economy is likely to continue to struggle over the next six to nine months, Genetski said at an economic breakfast sponsored by Cornerstone National Bank & Trust.

Genetski, who has become known over the years as an optimistic forecaster, did not deliver an abundance of positive news at the breakfast at the Cotillion Banquet Facility in Palatine.

He said the unemployment rate is likely to remain high for an “extended period of time and warned that tax rates are very likely going to increase next year.

He expects interest rates will remain low and had predicted that the stock market would have gone up more than it has by this time.

“I was hoping for more of a vigorous recovery, Genetski said.

He said how much the economy grows depends on how much people spend.

The conservative economist believes there needs to be more focus on economic policies and government spending.

Genetski warned that the health-care legislation that passed is expected to cost $2.7 trillion over the next couple of years while the financial reform will carry a $1.5 trillion price tag.

Many people attending the breakfast agreed with Genetski's thoughts on spending.

“I'm very conservative and I believe the government spending is what got us into this (economic) problem, George Bigham, of Ovation Payroll in Oakbrook Terrace, said after the breakfast.

Brian Burke, president of Links Technology Solutions in Schaumburg, thought Genetski was right on the money with his forecast. “I wish they would hire him in Washington, Burke said, adding that he agrees with Genetski in that governmental policies have had a negative effect on business confidence.

The speaker told the group that he is a proponent of classic economic principles. He believes China used these principles in building its economy. “China will pass the U.S. in the next five years and will be the most powerful economy in the world, he said.

“It's important for the economy to go back to classic economic principles, Genetski said, adding that he is seeing preliminary signs of this happening in Washington.