Can money made by the paychecks by the Workers working for Public Works be used to buy goods and services which would create Consumer Demand and
Consumer Spending in the Private Sector Economy ?
President Obama’s $787 billion American Recovery and Reinvestment Act — “the stimulus” — originally offered nearly $400 billion for
infrastructure projects until the republithugs threw another tantrum and hijacked $260 billion of it for tax cuts. That’s one third of the entire
stimulus package. No wonder it hasn’t worked as well as it could have. Now they’re whining that the stimulus didn’t create enough jobs. Well,
duh. That’s because tax cuts don’t create jobs. Only consumer demand for products and services does that.
Those things are new and repaired roads, bridges, dams, harbors, levees, tunnels, buildings, schools, parking garages, subways, railways, parks,
sewers, stadiums, airports, and other public facilities. That spending creates jobs for construction companies and workers. Those projects create
demand for the supplies, equipment, tools, and other materials that they need for those projects. It creates demand for the trucking companies to ship
them and the warehouses to store them. That creates jobs in all of those industries. If the companies supplying the construction industry have enough
work, they can spend some of their revenue to hire more employees or to upgrade their own facilities. See, more demand, more jobs.
Then all of those workers have paychecks that they can spend on groceries, clothing, furniture, cars, houses, utilities, entertainment, appliances,
restaurants, vacations, and all sorts of things. That creates demand in those industries. And that creates jobs. If those companies have enough work,
they can spend some of their revenue to hire more employees or to upgrade their own facilities. See, more demand, more jobs. And government gets its
new stuff built and its old stuff fixed. See. Everybody wins.