Stimulus more expensive (Provision of Public Goods)

This article describes how the The American Recovery and Reinvestment Act is now expected to be $75 Billion more expensive, with the projected total to be around $862 Billion. The article relates well to class because on 1/25/10 we talked about government intervention especially in the case public or social goods like roads, where private companies usually either do not or will not produce because it has very high fixed costs associated with it, is not very profitable (especially in the short run) and is not very public-friendly, when you pay constant tolls. So, the government takes care of it, and in turn, especially in this case, is providing construction jobs that people otherwise would not have with the construction sector hit hard from the housing crisis and lack of building. On top of this, it is increasing the budget - even though we are supposedly decreasing it in 2010 to 1.35 trillion, down from 14trillion. Included in the additional $75B are food stamp and unemployment costs that were higher than expected due to the extreme amounts of unemployment.