Monday, July 11, 2011

Is Obama's spending an investment, Or an increase on a debt.?

It was actually an investment towards paying down the debt. What people fail to realize is that infrastructure is a public debt. If you increase infrastructure improvements during a recession, the materials, labor, and bids in generally will be much lower in cost. So you are effectively fixing something that would need to be fixed in the near future, however you are spending a lot less on it than you would when it would be in the future. Plus you are giving people work to do which also helps the economy, and their taxes help with the debt. Sadly, the stimulus was not big enough. He should have dedicated a lot more funds towards infrastructure that is important to Americans' futures, such as high speed rail, renewable resource development, mass transit systems, etc. This would have created a lot of jobs in the growing "green" sector. One in which some of the hardest hit by this recession (those in construction) would have skills that could transfer over to these new jobs. So, what do you know, the stimulus was paying down on the debt.

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