How Exactly Does This Stimulate The Economy?
July 27, 2009 1:12pm CST
Remember how we need 800 billion dollars to jump start the economy. Remember how it was going to create job by funding shovel ready project. In my state I have found three shovel ready projects, two of them was to repave existing highway. True it is a new project, but what is this spending really stimulating? It took the road worker a week to do the project, which cause traffic jams for that week, and they forgot to put the turning lane lines back on the newly paved roads. The other project was actually an existing project before Obama was President. The state has just decided to fund the project through the stimulus money instead of the money they already had devoted to the project. Unless you work for an asphalt manufacture or you work for your local road crew, how does repaving roads stimulate the economy?
• United States
28 Jul 09
The stimulus package was designed to work over 2 years. You wont see much of the package going to work, because youre not the one directly recieving the funds. Depending on what yo do for a living, you might never see these funds goto work either
27 Jul 09
that is just one aspect you witnessed. economic growth depends on purchasing power of people. so the basic concept is to get money to the people. one way is to hand out money (what China did) and the other way is to create employment. creating employment is more stable way to recover the economy. if you have an income you can also take a loan. when you use your money to purchase, the persons involved in making that product or service also earn money and the cycle goes on. when the economy crashed there was no money in the system. the stimulus package puts money back into the system.
29 Jul 09
You have to realise that the majority of jobs are from the private sector where employers want to make money... it's all about saving money for the employer. For instance, the salary needed to employ a single call center operator here is enough to out-source the call center operations to a call center firm in India, inclusive of computers, phones and staff. Governments can give businesses incentives to employ locally, but at the end of the day, where there's a substantial saving to the employer, he/she is not going to be bothered about where the jobs go to.
• United States
29 Jul 09
I do not see where it stimulates the economy at all either. It provided one job for the workers to do. I do not think the stimulus did anything for all of us really. It was a waste of time and money. The economy is worse now than it was before the stimulus. I do not see it ever getting better either.