Delete comment from: Captain Capitalism
The point of the stimulus packages used to 'bost GDP' is that they need to somehow distribute the said money into the economy to provide the utility to the populace. They can do that in a few ways. For example here in Aust, the government literally gave around $1000 per tax-paying person so spend on what they desired to keep the money flow moving through the economy (since as we know without a constant flow of money, with everyone saving, the economy stalls). OR as was in the case of your small town, the government can distribute the money THROUGH public works which go to individuals salaries and typically increase employment, thereby using these individuals as both a way to distribute the money, and to make both importaint AND superficial changes to public works.
Mar 16, 2010, 2:33:30 PM
Posted to There is No Merit to GDP Unto Itself