NEWSMAX: President Barack Obama walked into the mouth of a giant tunnel in Miami on Friday to highlight proposals to boost investment in U.S. infrastructure, a move designed to show a leader still focused on the economy in the midst of broader policy battles in Washington.
Obama’s tour of the Port of Miami tunnel project and a subsequent speech were aimed at convincing members of the U.S. Congress to back proposals that would siphon billions in taxpayer dollars into public road, bridge and other infrastructure projects…
Alan Krueger, Obama’s chief economist, told reporters traveling with the president on Air Force One that the three main proposals outlined by Obama would cost some $21 billion… (more)
EDITOR: With almost eight percent of our work force reportedly unemployed (others estimate the figure to be much higher), the president’s proposal is pathetically undersized. It should be for $200 billion.
This isn’t money down the drain. Like a family taking out a mortgage to purchase a house, it is investing in the future.
Sure, future generations will have to pay for the tunnel. But they will get to use it. On the other hand, they won’t get any utility from debt run up in order to pay the unemployed and to provide other safety net services.
One more observations: The newly employed will spend their wages which in turn further spurs the economy and generates jobs for others. Economists refer to this as the ‘multipler effect.’ So $200 billion in infrastructure spendimg may have as much as a half trillion dollars worth of overall economic stimulus.
