Structural vs Stimulus | 82 comments (82 topical, 0 hidden)
Most internet listeners don't have doctoral... (none / 0)

degrees in economics with the wherewithal to understand the difference between structural spending versus stimulus spending.  Wouldn't you consider structural spending under a program to stimulate the economy as a sub-category of stimulus rather than a separate category.  If so, then using the general description of "stimulus" would capture the specific spending of "structural."

The US doesn't have an industrial policy like Europe does so structural spending is not commonly differentiated from other categories.  That and it is a fraction of the total allocated spending.

Spending money on infrastructure has a similar effect as tax cuts do.  Unfortunately, there is a spending problem so tax cuts wouldn't have a very strong stimulus impact at present.  Infrastructure would create jobs, create spending in the economy and add to the wealth of the nation.

Don't waste your vote, vote Green or Independent in the next election.

by mcamelyne on 09/04/2010 10:38:02 AM EST

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which is why (none / 0)
…..the ARRA has failed and they are back at the crack dealer for more. The failure to distinguish the two and understand basic economics and accounting is why this country is where it is today.

Infrastructure in itself has many sub categories. There are highways, water supplies, sewer systems and the information/energy grid. The biggest ROI will come from investing in the information/energy grid. Unfortunately, that is where the least amount of money will go.

Another drawback on the traditional infrastructure is that very little of it will create growth since we are already built out, however it needs to be done. Today there is a 2.2 trillion dollar shortfall in highway funds alone.

The one place where infrastructure will create long-term ROI and growth is high speed rail. They are woking on that but again, not enough.
Gotta get outside, it's 70 and clear. Peace out

by sisco66 on 09/04/2010 10:53:39 AM EST

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the word "stimulus" (none / 0)
.....asserts that it is a temporary problem. That misnomer has been reflected in all the half-ass approaches to fix the economy as well as played a major part in the failure to fix the structural problems with Wall Street, Healthcare, Housing and Energy.




by sisco66 on 09/04/2010 11:11:41 AM EST

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Structural vs Stimulus | 82 comments (82 topical, 0 hidden)