AP Impact: Road projects don't help unemployment

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  • Earl
    Jan. 11, 2010 3:46 p.m.

    The truth is something few want to hear because it means pain. What has to happen is that jobs created by excessive credit must be allowed to liquidate. We can't keep propping up jobs that shouldn't exist in the first place. Then interest rates have to be raised to the point that they attract savings so that the Federal Reserve will stop making money out of thin air. We're trying to reinflate a bubble that popped. It won't work. It will only result in greater debt, greater inflation, and a greater depression.

  • Simple
    Jan. 11, 2010 11:36 a.m.

    I will try not to over simplify this. The stimulus money propped up this leg of construction. If they had not spent money on it. It would be big story of how it contributed to the unemployment rates being even higher. Here is the real issue. Banking practices especially mortgage practices created by government intervention caused a huge problem. But it is not the only problem. Soaring gas prices caused some nervous comsumers as well. Here are three keys to not fall back into a ressession which is seeming pretty likely to me at this point.

    1. Create something of value. Something that can be exported. Industry should have received the stimulus money. Road projects create or maintain jobs short term. Creating industry creates jobs long term. Manufacture, and export goods.

    2. Produce energy. Set up a comprehensive energy plan including drilling for gas and oil, harnassing wind and water power, using solar and nuclear power. Get the technology out at the ground level. Get fuel efficeint cars out to the public, upgrade heating systems. Reduce dependancy on foriegn oil.

    3. Stop practices on loaning money based on anything other than ability to pay.

  • Lark
    Jan. 11, 2010 11:07 a.m.

    Of course it didn't have any impact. We've never stopped building roads and bridges. Even the State failed to cut road money to balance the budget (of course, it really didn't meaningfully cut anything).
    The only way the Government can intervene, if at all, would be to analyse what was really effected when banks went belly up. That economic crash didn't affect the really big budget items (those are funded be the Feds already), but it really hit small businesses. Hit them badly.