I see this logic alot from libs. How does it work when every dollar injected into the economy must be taken back out in the form of taxes. government spending "stimulus" simply redistributes existing incom, dand does NOTHING to increase productivity or employment, so, nothing to create additional income. And alot federal spending weakens the private sector by directing money toward less productive uses and weakens income growth
Please explain how it works otherwise.
All I see is that it grows government and doesn't provide an appropriate return on the investment. Even if you consider the short term projects, sure you will have people working a job building a road. Until the road is finished. Then what? And meanwhile you have dedicated all of that money into building the road and all you get back for it is payroll taxes. The money doesn't grow. Unless of course you make that road a toll road and charge people twice (through taxation and through tolls) for the project. But that's not exactly making that money grow the economy as much as it is ripping off the constituency.
Answer by Anonymous at 11:22 AM on Feb. 2, 2010
Answer by yourspecialkid at 11:28 AM on Feb. 2, 2010
Answer by sati769leigh at 11:42 AM on Feb. 2, 2010
Answer by Anonymous at 11:45 AM on Feb. 2, 2010
Answer by tnmomofive at 11:45 AM on Feb. 2, 2010
If government creates jobs within its own sector, it puts ppl to work., but in order the economy to be stimulated for the long haul, the jobs must be for the long term..PPl who work make money and buy items with those earnings. When homes and cars are bought, other ppl are put to work and earning money, which they can now spend on items and services. The biggest issue I see is there are few well paying, benefit providing, long term jobs available. Big Co's are finding it more cost effective to move out the US where labor is dirt cheap and benefits null. Small Cos here can not compete and more jobs are lost. we have to think globally-
Answer by Sisteract at 12:22 PM on Feb. 2, 2010
Answer by mancosmomma at 12:55 PM on Feb. 2, 2010
Answer by jesse123456 at 7:45 PM on Feb. 2, 2010