If the Federal government spent $200 billion each year (borrowed at nearly 0% interest) for the next five years on (sorely needed) infrastructure projects, that would employ 4 million people at an average salary of $50,000 for the next five years. This would create even more jobs indirectly. The unemployment rate would presumably drop to about 5% which would increase tax revenues tremendously.
Is Obama pushing for this? If not, is it because it wouldn't pass through the house?
The widespread concern of annual deficits pushing a trillion dollars is legitimate imho. If that borrowing was going toward improving the economy that's the most important thing isn't it? (We can't go on adding such debt indefinitely.)
By borrowing a fraction more per year and spending it directly on infrastructure I believe we'd put the economy back close to it's potential output, and then we would be able to fix the national debt problem from a position of strength.
Even if this is politically impossible at the moment, why doesn't Obama explain that this is a good solution to the problem by trying to get the mainstream media, and economic experts, to pressure the House into supporting such a stimulus?
If you have a sense why this isn't happening, please let me know.
It makes no sense.