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View Diary: It's time to pivot to jobs, but it isn't going to happen (125 comments)

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  •  From the Economist today . . . (3+ / 0-)
    Recommended by:
    TomP, chuckvw, Mr MadAsHell

    In the article titled: The bridges of Miami County(John Boehner's home district) the author starts by writing about the refurbishment of historical bridges in Ohio due to a grant from the Federal Highway Administration's National Historic Bridge Preservation Program. The author then goes on to ask:

    How much would it cost the federal government to borrow another few million dollars right now to repair some more historic bridges, or support other worthy infrastructure maintenance spending, in Ohio or somewhere else in America? What after-inflation interest rate would the market charge?

    The market would charge the federal government an after-inflation interest rate of negative 0.72% [emphasis in original] to lend it money for five years to, for example, repair some more historic bridges, or non-historic bridges for that matter, in Ohio, or wherever else it was most needed. If the government were to borrow $1m to do this right now, the bond market would effectively pay the government $36,500 over the next five years for its trouble.

    Would it be a good idea for the government to bring forward some infrastructure maintenance right now in order to generate a bit of extra demand?

    Since your congress-critter will be home on vacation soon, you may want to ask her that same question.

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