I have been thinking about this "Stimulus" package. I did not see anything that is going to promote manufacturing, or mining, or agriculture. These are the ONLY three things that create real wealth. If you desire, see the economics part of my book "China's War on the American Economy."
If we fund a new bridge, the crew is hired, the bridge built, and the job goes away. During this time the person building the bridge weekly buys his or her smokes, a six pack, and spends the rest - after taxes - on their family. In a few months they are unemployed again. There is also a lot of money to be spent on political friends, I'm sure. What will they do with their cash to create more real jobs? More houses in the Hamptons, Aspin? When those are built, then what?
It really goes back to the old saw, "Give a man a fish and he will be hungry again soon (and vote for more of the same), or teach him to fish and he will be self sustaining. (Not beholden to anyone?) Would not good manufacturing jobs be a real long term stimulus? Particularly if they are in America?
How about a tax reduction on business to 10%. And, a tax reduction to zero in blighted areas for a specific time for real value adding manufacturing? Nahhhhhh that's too simplistic.
Interesting to see companies in Houston departing to headquarter in other countries where the tax burden is less. I was told that Exxon pays more in tax to the US Government than they earned in their US business. About six months ago Emirates Air flew a couple of times into Houston. Now, daily. People are leaving California at the rate of 100,000 per year to flee taxes. People will move to get away from taxes. One reason I'm in Texas.
So lets cover our deficit of 5 trillion by raising taxes more. Soon, those remaining will be working for one huge government and paying their full wages as a tax to pay for the government they work for. If you are the last one out, I doubt if you will have to turn off the lights. They have been turned off for a long time already!