Friday, January 16, 2009

Economic Stimulus: Taxes and Infrastructure.

Infrastructure-the roads we drive on, the sidewalks we walk on, the pipes we drink from, the lines we plug into, and even more. Infrastructure is the measure of a country; the ability for a country to provide adequate services to its populace is one of the chief things that separates a "First World" country from a "Third World".
In America, much of this infrastructure is reliant upon the support of the government to be maintained and expanded. At the very least, private entities need to rely on government for permitting and oversight to implement infrastructure building initiatives. Lots of our infrastructure was built by the WPA in the Great Depression
When looking at stimuli to resolve our financial crisis (or at least stem the bleeding), fiscally conservative elements on both sides of the aisle have advocated for less direct government spending and more tax breaks.
However, with lower tax revenues, what will happen to our infrastructure that needs the government to survive? Privatization is not the answer. We need more stimulus to rebuild our infrastructure and ensure our economic and social viability into the future.