The Short-Term Problem of the Stimulus Package

"In a bid to preserve or create much-needed jobs, most of the stimulus spending for infrastructure is pushing short-term fixes, like repaved roads. Such projects have undeniable added value, allowing traffic to flow more smoothly and preventing crater-sized potholes from blowing out tires. Yet the roads will simply have to be repaved a few years down the line. In the long run, whether the stimulus helps bring down unemployment or not, little will have changed.

'Few of the [stimulus] projects are transformative,' said Joseph Schofer, professor of civil and environmental engineering at Northwestern University.

Not all of them were supposed to be, of course."

But despite the early focus on creating jobs and taking care of shorter-term problems, Kamin says the stimulus package is not necessarily a wasted investment in terms of infrastructure.

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