Infrastructure improvements to improve economy?
President Obama spent Labor Day pushing to American workers a $50 billion plan to improve transportation infrastructure.
The funds are separate from $787 billion Recovery Act dollars, ABC News reports, and could help create jobs in 2011, the administration hopes.
In addition, the proposal will include incentives for businesses hoping to invest in their own infrastructure – companies would be allowed to write off completely their investments in equipment until 2011, the Wall Street Journal reports.
With some 23 million Americans looking for full-time jobs, voters are pointing to the troubled economy as the most important issue in this year’s midterm elections.
Unemployment began to sore in 2008 after a banking and real estate crisis rocked Wall Street and plunged the economy into recession. A $787 billion spending bill passed by Congress in 2009 to revive the economy and earlier bailout loans to banks and big companies have stirred voter anger and sparked the Tea Party movement.
Supporters of the Obama administration’s fiscal policy say that without the federal stimulus spending the economic situation would be even worse. Critics argue that government spending is out of control, has failed to fix the economy and added to ballooning budget deficits.
Will additional government spending hurt or help the economy? Our Point/Counterpoint series gives you both sides of the issue.
The stimulus bill passed in 2009 is working; it has added about 3 million more jobs than the economy otherwise would have.
Additional government spending on unemployment benefits, aid to education and infrastructure will support job creation and economic growth.
The debt problem should be addressed once the economy has recovered.
The stimulus bill has failed; nearly two-thirds of the $787 billion has already been spent and unemployment rates are still above 9 percent.
The stimulus bill was full of unnecessary “pork barrel” projects; more government spending will lead to more waste of taxpayer money.
To fix the economy we need to get spending under control and attack the deficit.
Given the impact of the stimulus bill, do you think that additional spending will help or hurt the economy?