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i really don't think this rebate will work in stimulating the us economy. i have a question for economic majors or economists....IF the federal government were to sell bonds specifically for highway restoration and renovation, not in the major urban areas, and specified in the contracts that the work was to be done by small business and to hire economically disadvantaged young women and men to learn skilled trades would that stimulate local and regional economic growth?. this type of highway bonds would be a stable investment return for investors. i know this is a lot of hypotheticals, but if people do work that improves and repairs a crumbling infrastructure in their community/region and and they get wages, the people gain job skills and spend money and the region/community gains better roads and bridges. something along lines of the WPA of the great depression.( this is an idea we've been discussing here at home...)
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The theory behind that strategy would work quite well. But there are few small businesses that can do road work on any major scale. Unfortunately it would also likely cost more than the stimulus package now being passed and the young people might now want to work in that kind of a job. It is hard, hot, dirty work that not everyone is willing to do. But the idea of some kind of WPA is very good if investors are willing to settle for the interest rate on the bonds, versus the potential for making vast sums of money on the stock market.
