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
Date Written: January 21, 2009
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
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