@Jaxk – The reason I’m quibbling about your exaggerated numbers is because they’re exaggerated. It doesn’t represent real spending, it just represents (from what I can tell) someone on the Right trying to fudge numbers, which is something I’ve seen too much of in these last few years.
Infrastructure is long term, but a decent way to spend if it’s necessary. We still have a lot of the structures built during the WPA years – those represented good investment in the future. But it’s important to remember that while it does take a while to build things, the contracts are written and orders placed soon. Like they say, “shovel ready.” Largely, we need things that increase employment, like, now. And remember, austerity measures increase unemployment which would put us on a grand spiral downward.
By “dump trucks,” do you mean spending on things like unemployment, which does a lot to help the economy? As we know, wealthy people who receive tax breaks often save, and poor people in need of kids’ clothes and peanut butter spend what they get immediately on necessities. And where ever they spend it, that creates jobs for people like cashiers, distributors, farmers, up the chain. While it doesn’t build a road, it sure is felt sooner than later in strapped communities. Remember, all Americans are Obama’s constituents.
It’s not that it was spent poorly, it’s that it wasn’t enough. I don’t know about you, but if I have a headache, and one ibuprofen doesn’t work, I’ll take another: I don’t sit there whining about the ineffectiveness of ibuprofen.
Here’s a somewhat better explanation. Yes it is a blog, but it’s Mr. Laureth’s blog. ;) And when you get done with that one, here’s another.
I could understand the fear of borrowing if we were facing extortion-level interest rates, but we’re not. Interest rates have been at historically low levels, sometimes even in the negative – meaning people have even paid to loan us money. Credit is a resource, and just like in nature, a pile of resource screams out for someone to come along and utilize it. We should be using this credit to get the economy going again. Get it going, and then, as employment rises and the situation stabilizes, bring in savings measures, tamp down the spending, and pay down the debt. But we need to do that when we’re healthy, not when we’re sick.