The American Recovery and Reinvestment Act: Will More Public Spending Pave the Way to a Better Infrastructure?

Mercatus Policy No. 35

4 Pages Posted: 27 Jan 2009

See all articles by Eileen Norcross

Eileen Norcross

George Mason University - Mercatus Center

Frederic Sautet

The Catholic University of America (CUA) - Busch School of Business

Date Written: January 21, 2009

Abstract

This is a policy paper on the effect of infrastructure spending.

Congress and the new Administration are considering an $825 billion stimulus package that would in part grant the states $550 billion in new spending, much of which will be dedicated to infrastructure. Proponents claim this money will not only create government-funded jobs but will increase consumer spending and thereby increase incomes, while also improving America's infrastructure - ensuring safety and economic productivity.

While America's infrastructure may indeed need improvement, public spending is not the best way to fix it. Our infrastructure needs more than just a physical overhaul. It needs to move from an outmoded model of government provision to a system that permits and encourages innovation and flexibility.

Keywords: Stimulus Spending, Recovery, Infrastructure

Suggested Citation

Norcross, Eileen and Sautet, Frederic E., The American Recovery and Reinvestment Act: Will More Public Spending Pave the Way to a Better Infrastructure? (January 21, 2009). Mercatus Policy No. 35. Available at SSRN: https://ssrn.com/abstract=1333300 or http://dx.doi.org/10.2139/ssrn.1333300

Eileen Norcross

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States
703-993-4930 (Phone)

HOME PAGE: http://https://www.mercatus.org/eileen-norcross

Frederic E. Sautet (Contact Author)

The Catholic University of America (CUA) - Busch School of Business ( email )

Maloney Hall
620 Michigan Ave, NE
Washington, DC 20064
United States

HOME PAGE: http://business.cua.edu/faculty/sautet.cfm

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