Robert H. Frank writing in Sundays Money page of recent NY Times is advocating spending funds on repairing our infrastructure especially the roads and bridges as a positive means of combating the recession.
I find this interesting for four years ago when Obama was pushing the stimulus funding plan I wrote that the Federal Government would best serve the country in combating unemployment through a revival of the PWA and the CCC programs of the Roosevelt administration.
Unfortunately instead dollars were spent on political boondoggles with little benefit for most of us.
Of interest in Frank’s article is his call for borrowing to the hilt now to restore the dangerously depreciating bridges and roads. His argument is not only will it create jobs now but even with the interest payments and reduction of principle it will cost us less than will the ultimate emergency replacement off failing structures fifteen years from now.
I am not an economist so I cannot vouch for the validity of his figures but it is an intriguing thought that should bear consideration at all levels of government.
That should be a strange position for one who believes in old fashion values of having funds on hand before buying something. That is a lesson learned during the Great Depression.
On the other hand the programs I referred to went a long ways to shorten the effects of the jobless state of the nation in the 30s.