The White House is touting the impact of last year's stimulus package, in preserving American jobs and keeping the country out of a depression. But a leading Connecticut economist says the government's next stimulus investments need to focus more on infrastructure improvements. WNPR's John Dankosky reports.
The Senate jobs bill currently awaiting action in Congress has been scaled way down from an original $85 billion investment, to a mere $15 billion. Billions of money for research and development has been taken out, and only about $2 billion of the current package is planned for infrastructure improvements - and that's where UConn Economist Fred Carstensen says the most impact could be felt:
"We know that public infrastucutre investment has a very high multiplyer - that's how you get orders into the hands of business."
Carstensen spoke on WNPR's Where We Live. He says the jobs bill as it stands "probably won't amount to very much."
He's also skeptical about the impact of federal and state job plans that focus on tax breaks for companies who take on or retain employees. He says the big problem for business is the absence of demand for products - something he says massive infrastructure investments could spur.
For WNPR, I'm John Dankosky.