By Dave Anderson:
I like the Obama proposal to spend more money on basic infrastructure. There is a lot of run-down infrastructure in the United States that needs maitenance that is no longer deferred to save cash-strapped local governments a couple of bucks until after the next election cycle, and there are plenty of people with relevant skills who are out of work. Assuming we eventually return to trend growth, building infrastructure when materials are cheap, labor is cheap, and land is cheap means we get good bang for the buck at 2.6% interest rates.
However, I have to agree with Paul Krugman's analysis of the $50 billion dollar proposal; it is a necessary but insufficient proposal that will get killed in Congress:
1. It�s a good idea
2. It�s much too small
3. It won�t pass anyway � which makes you wonder why the administration
didn�t propose a bigger plan, so as to at least make the point that the
other party is standing in the way of much needed repair to our roads,
ports, sewers, and more� not to mention creating jobs. Once again,
they�re striking right at the capillaries.
And that will be the Obama Administration's epitaph; necessary but insufficient actions all around in a vain attempt to either punch a hippie for political gain or to curry favor with voters and interest groups that will never vote for Democrats.
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