“Lawmakers should also drop the illusion that infrastructure will bring economic stimulus. House Speaker Nancy Pelosi recently said this initiative is “about jobs, jobs, jobs.” Yet with the unemployment rate already at 3.6% — the lowest since the 1960s — there is no significant slack in the economy to mobilize. All the government can do is transfer capital and jobs from one part of the economy to another.”
Too rosy of a jobs outlook, too gullible to government statistics. The government unemployment rate is a function of politics and constantly changing definitions and demographic/economics methodologies. U6 is still at 7.3%. And even that is probably a low estimate.
Then by all means let’s spend 2 trillion we don’t have
/s
Actually what they can do is to ignite a rip-roaring inflation.
This will do two things:
1. It will give the temporary illusion of huge prosperity, and
2. Reduce the national debt/GDP ratio.