All Posts Tagged With: "deficit spending"
Building for the Future
Earlier this month president-elect Barack Obama announced that he intends to enact a new economic stimulus package to create 2.5 million jobs and help stabilize our flagging economy. This stimulus package is on a truly massive scale. Initial numbers ran in the $700 billion range, but more recent reports suggest $775 billion or eventually $1 trillion.
So the government is about to spend a gajillion dollars and the transition team is probably thinking up how to target the investments to get the most bang for the buck. Many have suggested using a chunk of it to help states or to fund proposed and planned infrastructure projects. Funding infrastructure projects has the benefit of putting large numbers of people directly to work in construction. Indirectly it will stimulate demand and create jobs in other sectors that supply materials as well as in service sectors as people spend the money they’re earning with their nifty construction jobs.