American businesses and the government will spend more than $100 billion preparing for the 2000 date change, money that should protect the U.S. economy from any Y2K-related economic hits, Commerce Secretary William Daley said Wednesday.
"Obviously, this is a lot of money," Daley said. "But the potential cost of not doing anything was far greater."
The $100 billion figure-or $365 per citizen-covers Y2K repairs started in 1995 through 2001. The Commerce Department's Economics and Statistics Administration, which prepared the cost report, estimates spending beyond the 2000 date change to cover unexpected breakdowns and glitches.
The government has spent about $8 billion, out of the $100 billion total, in its Y2K repair efforts.
Robert Shapiro, Commerce's undersecretary for economic affairs, said the study found that major U.S. trading partners are also well prepared for the date change, therefore Y2K should not negatively impact the U.S. economy.
"We do not expect Y2K problems at home or abroad to throw U.S. economic growth off course," he said. "Firms in competitive markets have spent a great deal of resources fixing the problem."
Still at risk are "hundreds of thousands" of small businesses that have not aggressively made Y2K fixes to their computer systems, White House Y2K chief John Koskinen said. He added that their lack of preparation isn't expected to dent the economy, but it could hurt their livelihood.
"While it won't effect the economy, they could lose customers and go out of business," Koskinen said. "There's still time, but we're getting to the point where it could be too late to start."
Daley added that Commerce has sent out 500,000 Y2K preparation kits to small businesses and associations internationally. Additionally, Congress passed legislation that would give small businesses access to loans though the Small Business Administration to fund Y2K fixes.
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