Reply #12: there's little in the economy that wouldn't benefit from a massive, keynesian works program

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the government should shell out massive bucks to give people jobs rebuilding out crumbling infrastructure, exploring green technology, and so on.

the individuals hired (or contracted) would obviously benefit directly, but business big and small would benefit as well. they would be able to pay down their debts, so banks would benefit. they would be able to buy more, so local businesses and bigger businesses would benefit as well. and of course, all businesses would benefit from the improved infrastructure and technological advances that result (think nasa in the '60s).

despite the massive initial cost, much of this would be recovered. the governments (i'll lump together federal and state for convenience) would no longer have to pay unemployment or welfare to those hired; they would pay taxes; and their extra spending would mean more taxes from the local businesses and so on. so much of the money would come right back.


with big business cash hordes being as huge as they are, this is the ideal time for tickle UP economics -- give money to the little guy and watch the big businesses go ape trying to extract their share. they will succeed, but they'll have to engage in (gasp!) actual economic activity to make it happen.