Re: Transportation and infrastructure spending not producing many jobs
Author: C. Cutler
Date: 01-11-2010 - 19:25
It is no surprise to most economists...infrastructure spending goes mostly to capital "factors" not labor "factors" which means most infrastructure spending goes to paying rent for equipment, not paying wages. But frankly paying rent for equipment that would otherwise be idle is not a bad thing because it helps construction borrowers repay loans and helps avoid having more bad loans at banks.
If they want to create jobs it would be for highly labor intensive work...maintenance, picking up garbage, basic construction, that kind of thing...but that would require politicians trained as businessmen, not as lawyers.