Question

Please read the following paragraph. I would like you to explain the underlined sentences in economic terms

David Speer is chief executive of Illinois Toolworks, which has 60,000 employees worldwide in more than 800 business units and $14 billion in sales. He said an additional burst of fiscal stimulus from Washington might help boost economic growth for a period of months. But that is unlikely to affect his decisions about hiring and expansion, which Speer said are based on expectations for sales over years to come, not just the immediate future.

As long as U.S. consumers remain deeply strained, he is unlikely to undertake aggressive expansion.

More fiscal stimulus "might help make things a little better for a couple of quarters, but I'm not sure it would get at the underlying economic issue," Speer said. "The core question is: How do you get consumers back on their feet. We need growth in a sustainable way, not another Band-Aid."

Nor is it clear that new Fed action, such as steps to try to lower long-term interest rates and encourage investment, would prompt him to expand.

For large companies such as Illinois Tool Works, the price of borrowed money isn't the problem. The company had $1.3 billion in cash on its balance sheet at the end of June, up from $743 million at the end of 2008. Lower interest rates wouldn't make much of a difference, either.

"I could borrow $2 billion tomorrow for 3 1/2 percent," said Speer. "But what am I going to do with it?"

Speer is coming to terms with a new economic reality. After an extended economic boom, the nation is less than three years into the process of working out the excesses of that period.

"It took us a decade to get in the ditch we are in," Speer said. "There isn't going to be instant gratification to get us out of it. We're going to have to get used to a lower growth economy, and that is going to be a big adjustment for all of us."

Answer 1

"As long as U.S. consumers remain deeply strained, he is unlikely to undertake aggressive expansion." -  The explanation of this sentence is that in current economic scenario there is a lack of demand rather than the lack of supply which means that the buying capacity of consumers is strained and the consumers do not enough disposable income is not large enough which help demand to increase which able to keep up with the supply side which discourage the supply side to expand more.

"I could borrow $2 billion tomorrow for 3 1/2 percent," said Speer. "But what am I going to do with it" -  The explanation of this sentence is that there is enough availability of liquidity for expansion and low interest rate but due to lack of demand no firm would like to expand their current operations .

We're going to have to get used to a lower growth economy, and that is going to be a big adjustment for all of us."- As the economic condition is getting worse in long term , the author is suggesting the general population should accept the reality of low growth and change there living habits according to it .