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Defining Obscene
12-09-2008, 03:51 PM
I'm hearing about all this new deal crap, but its just not connecting... Can someone please explain the ideology behind this? Because from what I understand, it goes like this...


- Government creates jobs building roads etc.
- People who can't find jobs get underemployed
- (No special provision to ensure ONLY documented US citizens can attain these jobs)
- New employees get paid with tax payer money
- Nothing gets EXPORTED; you can't export a road
- We're still in DEBT
- We still accumulate interest
- Government employees spend paychecks on consumption
- Nothing is really produced
____________

- Our roads are freshly paved
- The inevitable has been delayed for a short period for no apparent reason


Am I missing something?

Feenix566
12-09-2008, 03:56 PM
The argument that spending money on new roads "creates jobs" falls flat on its face. If "creating jobs" were the highest purpose of government spending, we could easily employ every single man, woman, and child in America by digging holes and filling them back in all day. We'd have 0% unemployment instantly, and we'd all be starving within a week.

On the other hand, roads are necessary for commerce. Until now, having every road be owned and maintained privately presented an insurmoutable logistical hurdle. Now, technology has progressed to the point where we could have private roads everywhere that charge everyone a few pennies every time they drive on them. It's an idea whose time has come. Or at least it will be once we convince everyone it's time has come. I don't expect that to happen any time soon.

brandon
12-09-2008, 04:02 PM
I'm hearing about all this new deal crap, but its just not connecting... Can someone please explain the ideology behind this? Because from what I understand, it goes like this...


- Government creates jobs building roads etc.
- People who can't find jobs get underemployed
- (No special provision to ensure ONLY documented US citizens can attain these jobs)
- New employees get paid with tax payer money
- Nothing gets EXPORTED; you can't export a road
- We're still in DEBT
- We still accumulate interest
- Government employees spend paychecks on consumption
- Nothing is really produced
____________

- Our roads are freshly paved
- The inevitable has been delayed for a short period for no apparent reason


Am I missing something?

When the government creates "Public Infrastructure" they are producing something. Infrastructure is capital. They are increasing the capital in our country. Of all the things the government could possibly spend money on, this is most likely the best.

The problem is the government doesn't know how much public infrastructure we need or can afford. They have no way of calculating this. Only the market can calculate this. However, we may still benefit from the expansion of our public infrastructure (or capital). We just have to keep our fingers crossed that the government's guess at how much infrastructure we need is somewhat accurate.

When they create infrastructure, they are taking money from other areas of the economy where it may be put to a better use. However many jobs the government creates building infrastructure, they destroy an equal amount (more or less) of private sector jobs, resulting in no net increase of jobs.

You are right that it wont have an immediate impact on reducing our debt or increasing exports, but after the infrastructure is created it may then increase exports. For example, more efficient highways will result in truck drivers needing less fuel and having faster delivery times. This increased productivity will result in lower prices and make our exports more competitive.

Defining Obscene
12-09-2008, 04:21 PM
But if the government destroys an equal amount of private sector jobs, isn't that going to hurt more than heal? I could understand if truck driver's fuel consumption was the heart of our problems, but this just doesn't add up to me. High fuel prices have more to do with consumption than roads, take it up with OPEC, that's what I say. The truck drivers in this country aren't exporting anyway, they're moving imported goods. This just seems like a red herring.

brandon
12-09-2008, 04:26 PM
But if the government destroys an equal amount of private sector jobs, isn't that going to hurt more than heal?

Most likely. But I'm sure you would agree that we do need roads. The question is how many roads and how often should they be repaired. If the government knows the exact answer to this question then they won't be hurting us.

IPSecure
12-09-2008, 05:21 PM
Did not Huckster float this idea in the primaries?

Saw a state government commercial last week, two old geezers, proud that they pay their vehicle registration, to help pay for the roads. I was under the impression that the tax on gasoline took care of that...

Defining Obscene
12-09-2008, 07:48 PM
I heard someone say that "going green" would be the supplement to building infrastructure. Green cars would be the new export. Question:

Who is going to make these "green" cars? The big 3 are about to be buried in their own s***. Who is going to do this?? The only thing I've thought about is if the government decided to buy out the big 3 and make them state-run companies, which would be the most communist s*** ever.

yokna7
12-10-2008, 10:30 AM
Public infrastructure projects that obama is endorsing are bs. The logic is (as was said) to increase the capital of the country, which would open up business opportunities in the future. The new deal was a failure, we are still paying for it, this will be a failure.

All that needs privatized. ALL OF IT

Oh yeah, we're broke too!!!!!!!!!