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I'm starting to think there are only two classes of people supporting the anti-recession stimulus package: folks running for office, and folks looking for Presidential legacies.
Add Joel Rosenthal to the list of local voices against the stimulus package. In his latest post at SD Straight Talk, he says all the clamor from Washington for handing out free money has only worsened folks' fears about the economy. He acknowledges the handouts are inevitable, but says they won't do much for the long-term health of the economy.
Rosenthal offers his own vision of a stimulus package that would do much more good for the economy. In typical country-club Republican fashion, he says a third of the package should go toward a business investment tax credit. (Read Robert Reich, Joel, and then tell me why businesses are goign to invest more when demand is shrinking.) The second third Rosenthal would dump into a housing tax credit, with the intent of clearing the "backlog of foreclosures and unsold homes" and sparking the sort of building that makes for more economic activity. But if overheated homebuilding and home-buying helped get us into this mess, is trying to reheat that market a wise solution?
Rosenthal does surprise me with his proposal for the final third of the stimulus package. He would direct that last $50 billion toward "roads, bridges, Amtrak, Mass Transit, or projects like Lewis and Clark Pipeline." Spending on infrastructure is superior economic stimulus because it
puts people to work, puts money in their hands, and lowers unemployment. After the money is spent, the economy improved and we have something tangible to show for it [Joel Rosenthal, "Political Panic," SD Straight Talk, 2008.01.31].
To hear a conservative Republican speak approvingly of mass transit and Amtrak in any way amkes me check my calendar -- nope, April Fools Day still two months away.
Rosenthal here hits on a really good idea (and that is the first time I've put "Rosenthal" and "good idea" in the same sentence). Infrastructure projects are vital, and mass transit projects in particular would take multiple swipes at the forces dragging down our economy. As Rosenthal notes, high gas prices are part of the recession-causing mix. Building more commuter rails (can you say "maglev"?) would fight high gas prices by getting people off the highway and decreasing demand for gas and foreign oil. Now that's a stimulus package we should support!
Senator Thune didn't show any opposition to the stimulus plan, but he did say “I would like to see some of the money in that stimulus bill going toward road building and other infrastructure projects. By investing in America’s infrastructure we not only create jobs and pump money into local economies but we also help states address critical infrastructure needs that are only going to grow more expensive with time.”
ReplyDeleteRosenthal and Thune are on to something. Investing in infrastructure, something that will serve the public good for decades, seems like a much better investment of tax dollars than a one-time injection of cash into consumer spending, which if it buys anything will be mostly more junk from Wal-mart/China.
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