GOP senators draft stimulus alternative

[shortking98]

Not real thrilled about the cut in infrastructure spending. Aging infrastructure does not last forever unfortunately

[OnePimpTiger]

Not real thrilled about the cut in infrastructure spending. Aging infrastructure does not last forever unfortunately

I agree completely, but that shouldn't be addressed in an "economic stimulus" bill. As I've said before, I know that kind of thing happens all the time, but the economic stimulus is a different situation and should be treated as such.

[shortking98]

Money put into transit and infrastructure has been proven to stimulate the economy

[OnePimpTiger]

Money put into transit and infrastructure has been proven to stimulate the economy

How so?

[shortking98]

Because for every $1 spent on transportation there is something like a return of $1.40 in GDP. I don't have the stats in front of me but I believe it is in that ballpark

[OnePimpTiger]

But how does it provide that $1.40 in GDP?

[shortking98]

Plenty of ways. For instance, fixing a transit system saves everyone time on their commute, allows for more production, creates jobs etc. etc.

[OnePimpTiger]

That seems like a very indirect and inefficient stimulation of the economy. The necessary infrastructure is in place and, unless it breaks, shuts down, etc, serves the necessary purpose. Granted, infrastructure definitely needs to be addressed, but not in an "emergency" economic stimulus package.

In a roundabout way, everything can be traced to providing an economic stimulus. The anti-smoking programs would help cut down on smoke breaks taken and result in more productivity, there by stimulating the economy...but it's not an efficient use of money. Give people their tax money back and they can put it directly into the economy...much more efficient and effective.

[shortking98]

There is nothing indirect about hiring people to fix infrastructure. In fact, giving people refunds or breaks on income tax is even more of a roundabout way to create jobs since only people who already have jobs will benefit from it directly

[OnePimpTiger]

In most instances, the people who will be fixing the infrastructure are already hired either by the state DOTs or the contractors they deal with.

And giving people tax breaks is the same thing as creating new jobs, it gives people money to spend. Putting money into the economy is how you make the economy grow. New jobs are a by-product of an increasing economy, not the actual means of increasing it.