12.05.2008

dealing with economic problems. (off topic).

One of the common things you hear when the economy tanks is 'You can't get out of a recession through deficit spending.'  I call bullshit.


Here's how I see the current situation: The economy needs to be stimulated somehow, money needs to be spent, and it needs to be spent in a useful way that bolsters consumer spending, but doesn't result in waste.

As it happens, Canada is in the middle of a massive failure of infrastructure, because upkeep of roads, bridges, transit, etc etc etc has been pushed further and further into the future, to maintain balanced budgets.

Why not spend money there.  Instead of spending taxpayer money on directly bailing out failed corporations, why not take the billions that will eventually be spent, and use it to 1) fix a ticking timebomb of failing infrastructure (that we will need to pay for eventually), and 2) create jobs, projects for construction firms, long term contracts which in turn mean stability.

The most important part: just because it's deficit spending doesn't mean it shouldn't still be prudent.  Use the economic downturn, and the scale of the project, to get companies to fight for the contract with low bids.  No 'cost plus' here.

In short, use the economic crisis as justification to fix decades worth of disregarded infrastructure, at a better price than you ever could if it was done gradually.  While actually doing something meaningful to help Canada through this crisis.

Just a thought.

1 comment:

Anonymous said...

Yeah, Infrastructural projects are a staple of make jobs during bad times. If the infrastructure is badly needed, so much the better.

Unfortunately the Canadian leaders seem more concerned with pissing on each other.

Maybe you should run for Liberal party leadership Mr. Model Parliament.