All valid points, but the main problem with “stimulus spending” by government is that it is borrowed money and it is spent by congress. It never does what it promises.
Stimulus spending is about as effective in changing our lives as the 25 cent toy in the machine next to the cash register is in changing my kids life. That has been the history of “stimulus spending” for me. Lots of bling and promise and a fleeting moment of satisfaction.
The interstate highway system wasn’t stimulus spending. It was about boldly improving transportation in America. That infra-structure improvement has paid back a million times its cost.
Only the infrastructure plan is stimulus building. Everything else is tariff and tax reform and government downsizing.
Obama did an infrastructure plan that went to his bundlers and went to increasing government programs that then had to be funded every year afterwards. They rolled the “one time” stimulus plan into the budget, just like Obama rolled the war costs that Bush had kept separate into the budget.
Trump will really spend the money on infrastructure and he will really get value for what is spent.
Infrastructure plans are different than tax cuts in that more of the money gets spent immediately into the economy than tax cuts when tend to get saved. Both are good in the right circumstances.
And Infrastructure plans don’t cost as much as their face value becaus 15 to 20% comes back to the treasure in income tax. Probably a lot more by the time you consider the velocity of money and that the money will be taxed multiple times. Plus it gets people off the welfare roles which saves money too.
Don’t expect this to be Obama’s stimulus redux and don’t ignore the many aspects of Trump’s overall plan that is not stimulus spending.
If Trump cuts government as much as I expect him to, he needs a stimulus plan to help soften the economic blow from all the government jobs that will be lost.
Only the infrastructure plan is stimulus building. Everything else is tariff and tax reform and government downsizing.
Obama did an infrastructure plan that went to his bundlers and went to increasing government programs that then had to be funded every year afterwards. They rolled the “one time” stimulus plan into the budget, just like Obama rolled the war costs that Bush had kept separate into the budget.
Trump will really spend the money on infrastructure and he will really get value for what is spent.
Infrastructure plans are different than tax cuts in that more of the money gets spent immediately into the economy than tax cuts when tend to get saved. Both are good in the right circumstances.
And Infrastructure plans don’t cost as much as their face value becaus 15 to 20% comes back to the treasure in income tax. Probably a lot more by the time you consider the velocity of money and that the money will be taxed multiple times. Plus it gets people off the welfare roles which saves money too.
Don’t expect this to be Obama’s stimulus redux and don’t ignore the many aspects of Trump’s overall plan that is not stimulus spending.
If Trump cuts government as much as I expect him to, he needs a stimulus plan to help soften the economic blow from all the government jobs that will be lost.