US President Obama has introduced a new stimulus plan, one that should have been introduced two years ago.
Obama, scrambling to spur job creation, proposed a six-year plan on Monday to rebuild infrastructure with an initial $50 billion investment and prepared new business tax cuts.”We are going to rebuild 150,000 miles of our roads — that’s enough to circle the world six times. … We’re going to lay and maintain 4,000 miles of our railways — enough to stretch coast-to-coast,” Obama told a labor rally in Milwaukee where several thousand supporters cheered his every line.
Of course, Republicans and some business leaders were quick to criticize the plan, but the real advantage of it is job creation. The first stimulus was focused on the financial industry. It did not lead to more employment because the subsidies did not lead to more investment.
The White House stressed the plan would not add to the record U.S. deficit, a key issue for voters.
“One thing (Obama) is willing to put on the table is closing some of the tax loopholes for big oil and gas companies that currently get subsidies from taxpayers that they certainly don’t need. He thinks that is a perfectly good ‘pay-for’ to get this up and running,” the administration official said.
Not sure that eliminating that source of campaign contributions is going to help with Obama’s re-election, but this should continue to attract votes among middle class voters. From an economic standpoint, this is a better example of the kind of stimulus Keynes suggested for pulling out of a demand-deficient recession. Let’s wait and see of the US congress can throw-off the chains of their election funding and do something for the majority of Americans.