Stimulus roads lead to nowher
Two concepts are bound to hit a dead end.
First, let's take the case of the stimulus money going into road construction. The jobs created by this effort are going to end. Soon. When the roads are all done, these people will be out of work again. Nothing permanent for the future here.
Furthermore I imagine there is an awful lot of gas wasted in construction tie ups as frustrated commuters poke along on their way to work.
Next, the Cash for Clunkers program. Well, exactly who are the owners of the clunkers? Simply, they are the folks who have elected not to trade in their older cars. So, with this incentive, they'll trade up and, most likely, not be out buying a new car until this one becomes a clunker. So, where does that get us in the near future?
The dealers are having a field day, but what will they do in September or when the 2010 models arrive? They just sold their excess inventory to future potential buyers who won't be back for years to come.
The automakers and workers should probably plan on a lot less work down the road as the inventory grows again and sits on the lot waiting for buyers without clunkers.
We are putting the money in temporary programs that will have no effect on a sustained recovery - but only serve to give small groups of people a "feel good" shot in the arm. Just wait for the relapse.
Where then, should stimulus money go? Manufacturing. If someone wants to build refrigerators in this country, let's give them the money. Build TV sets? Radios? Vacuum Cleaners? Manufacture clothing? Give them the money. They will create long-lasting jobs that many laid off workers would be glad to have.
Bill Holtane
Des Plaines