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  • AP Confirms: Government Infrastructure Spending Does Not Create Jobs

    The AP reports:

    Ten months into President Barack Obama’s first economic stimulus plan, a surge in spending on roads and bridges has had no effect on local unemployment and only barely helped the beleaguered construction industry, an Associated Press analysis has found.

    Construction spending would be a key part of the Jobs for Main Street Act, a $75 billion second stimulus to revive the nation’s lethargic unemployment rate and improve the dismal job market for construction workers. The House approved the bill 217-212 last month after House Speaker Nancy Pelosi, D-Calif., worked the floor for an hour; the Senate is expected to consider it later in January.

    AP’s analysis, which was reviewed by independent economists at five universities, showed that strategy hasn’t affected unemployment rates so far. And there’s concern it won’t work the second time.

    The sad part is our federal government already knew that government infrastructure spending does not create any net new jobs. As Heritage’s Ronald Utt has documented reports from the Congressional Budget Office, Department of Transportation, Congressional Research Service, and Government Accountability Office have all concluded that the net job impact of federal transportation spending is negligible and possibly negative. A 1993 CRS report must succinctly explains why:

    To the extent that financing new highways by reducing expenditures on other programs or by deficit finance and its impact on private consumption and investment, the net impact on the economy of highway construction in terms of both output and employment could be nullified or even negative.

    Posted in Economics [slideshow_deploy]

    15 Responses to AP Confirms: Government Infrastructure Spending Does Not Create Jobs

    1. Mark Sorrentino, Win says:

      heard in the WH … "dohh, we've lost the AP"

    2. Eliz Tampa says:

      The only answer is to reduce the size and scope of government.

    3. Joe says:

      Obama has created/saved marketing jobs for all the used car dealers and discount furniture stores that advertise that they’ve got a “stimulus plan” for their consumers. Come on down!

    4. Bobbie Jay says:


    5. Pingback: links for 2010-01-13 « Overton’s Arrow

    6. Andrew says:

      No, the only answer is "dump the assholes in charge and start all over"!!

      Even if we have to water the tree of Liberty in the process.

    7. Timmeh, Kansas city says:

      Well, these days government jobs are paying more then private sector, does that count as jobs saved?

    8. Pingback: » Missing The Mass Point - Big Government

    9. Pingback: The Absurd Report » The Economy: Looking Ahead at 2010

    10. Pingback: Morning Bell: Second Stimulus, Same as the First | The Foundry: Conservative Policy News.

    11. Bob, Yucca Valley says:

      The problem is that we need a plan. Government doesn't plan anything any more.

    12. Pingback: Morning Bell: Second Stimulus, Same as the First | Conservative Principles Now

    13. Pingback: Morning Bell: Second Stimulus, Same as the First | Step Down Obama

    14. Pingback: Obama’s High-Speed Spending on Slow-Speed Rail | The Foundry

    15. Valentino Procida says:

      And Obana has got the nerve to say he needs 5 more years to get his things done, can you tell me what has he done in his first 3 years of doing nothing for any Americans but change and not for the better either.
      Are there any real Americans out there other than, those serving in the military, God Bless them all for being there. Must the Sun go out to show the Democratic Party has lost it's way, come on America wake up, it's time that we the people take our country back. This is not the America I grew up in anymore, and what's going on is a shame and has to be stopped.

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    Big Government Is NOT the Answer

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