... and other infrastructure:
In the midst of the economic crisis, the two presidential candidates are talking about creating jobs. McCain says we should reduce taxes on business. Obama says we should give businesses a $3,000 tax credit for hiring new workers. McCain may be right in the long run, in that a reduction in business taxes would make U.S. based business more competitive Obama is suggesting a more directed tax relief, designed specifically to create jobs. However, while businesses might benefit from such a tax credit, they are unlikely to hire a worker for the sake of tax increase. If the two candidates really want to create jobs, via government stimulation, they should suggest spending money on infrastructure projects--bridges, highways, government buildings, airport and seaport improvements, etc. In fact, all government levels--federal, state, county, and municipal--should organize their affairs so that spending on infrastructure occurs most intensely during economic downturns. Construction projects do several things:
- They provide "good-paying jobs" in both professional and construction categories.
- They support a variety of local businesses directly (e.g. , construction companies) and indirectly (e.g., materials companies).
- They provide much-needed new infrastructure and maintenance of existing infrastructure.
In short, this is work that needs to be done. Why not do it during an economic downturn? During economic upturns, governments should reduce spending on infrastructure and build up "rainy day" funds to be spent on infrastructure during the next economic downturn.
This is a much better strategy than mickey-mouse payments and tax credits that sound good but do nothing to create jobs directly and little to create them indirectly--and that leave the public with no lasting legacy. Like infrastructure.--Wile E.