Quote:
Originally Posted by Robbie
Shotsie...what are those workers who do all these govt. projects going to do when the govt. project is done?
Is the theory that if we can get them back to working via govt. contracts, they will now have income and spend and stimulate the economy which will in turn mean work for them down the line when the govt. work runs out?
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That's my theory, although i'm no economist.
Common sense tells me the more government workers you lay off, the less projects the government funds, the higher the rate of unemployment, and the less money you have flowing through the economy. It's a chain reaction, every part of the economy is interdependent.
If we started some government projects, say infrastructure, that would create a chain reaction of employment. Truck drivers, construction workers, manufacturers, building contractors, and all the goods and services they buy would help stimulate the economy.