This is my beef with a lot of the spending that politicians do with their Pork Barrel /IRA allotments etc. Few politicians seem to grasp that spending money on somethings are a better use of capital because it creates a value unlocking cycle to more investments/more revenues. This is why districts which have very narrow roads that are burdened with heavy traffic should be widened, and when you see a couple of projects to cover the basketball courts along the road whilst the narrowness of the road is not addressed. Well this is simply a failure in allocation. This is a simple example but we can see this in various degrees in most congressional districts/ provinces and cities in the Philippines. We have a fucking budget deficit because of a few things. One being corruption and the other being a failure in allocation. If I can credit GMA with anything is that she seems to understand this. Hence a lot of development in places like bohol,cebu,cagayan de oro, davao and a host of other places. A flawed analogy would be using your money to get into trainings. If you use your money to train in skills that are marketable or have value you have used you money well, while if you use your money to train for personal enjoyment you gain in happiness but you didn’t increase your value (If your strict about this you increased your value but tangentially).
What should Congress be doing instead? It should be thinking of public infrastructure and human capital projects that provide3 support to important public institutions that will last long beyond the current Recession. Congress should be funding public transit and renewable energy projects that would directly put to work hundreds of thousands of ordinary Americans. Another important public infrastructure project that would make a real difference in unemployment? How about providing 1-2 billion apiece to the ten largest inner cities to be used for urban renewal–destruction of ruined buildings, building of public transit and energy projects–with the requiremment that at least 75% of the employees be from the city itself. Detroit's mayor has said that tehre aare 10,000 buildings that need to be pulled down in the city. That would be great work for unskilled laborers and make a marvelous dent in uhemployment. And it should be providing another stimulus packagge for the states to support education from K-16 and beyond–the best investment we can make in keeping our US universities and schools great, keeping educators employed, and offering ordinary Americans the chance to better themselves through educational advancement.
Just imagine. What if Congress would have the courage to discuss these issues publicly? Quit thinking about their corporatist patrons? Start thinking about ordinary Americans? And actually fund public infrastructure and human capital support over the next two years.
via Congress appears doomed to fail on Jobs Creation Legislation | Angry Bear.