Infrastructure Spending
Voters love tax cuts; Republican lawmakers love cutting taxes. Small businesses and corporations alike love paying low, even nonexistent tariffs on their goods and products. Due to the conservative ideal's immense popularity, one may believe that tax cuts are the most effective way to stimulate the American economy.The logic behind this thinking appears sound- if taxes paid by small business owners are cut, these business men and women will have more money to pour into their companies and, therefore, will be able to provide jobs for more Americans. Moreover, tax cuts, according to the idea's proponents, will give consumers more money to spend on goods and products that may have, in the past, been too expensive for the interested parties. The consumer spending, in turn, would stimulate the economy- or so pro-tax cut politicians say.
However, cutting taxes is not the best way to stimulate the economy, nor is it a particularly effective one. Tax cuts, while popular, will only make a small difference in a huge economy, and do not provide for a scenario in which the small business owners do not return the money saved to their companies.
In order to stimulate the economy, the US government must fund programs to provide jobs to American people, with a heavy focus on infrastructure spending. Infrastructure spending, or government funding of the building of roads, bridges, schools, etc, provides structure to America's crumbling infrastructure.
American buildings are falling apart. Destruction from natural disasters and simple age still ravage America's infrastructure, and the repair of roads and the like has become one of the most important issues today on a local level. America's buildings affect nearly every American every day, as they go to school, work, or home. The long term maintenance of failing infrastructure will result in incredibly high cost for the American taxpayer. If the problems are not immediately fixed, the financial consequences of quite literally rebuilding America will be great.
Additionally, infrastructure spending provides simple, viable jobs to US workers. In the current economy, with the shockingly high unemployment, workers are in desperate need of work that projects created by infrastructure spending will easily provide.
Often, the government will also hire small businesses to restructure the roads and buildings that must be repaired. Not only does that provide jobs, infrastructure spending funds small business, and, by extension, stimulates the economy on a national level.
0 comments:
Post a Comment