Monday, October 18, 2010
A town saved by stimulus
This article is about the stimulus package and how it saved a town (Kokomo) from becoming essentially a ghost town. The city was home to the four Chrysler plants and a Delphi facility and its future was very questionable similar to the auto industry. Thanks to the stimulus package the town has gone from an unemployment rate of 20% to under 14%. Obviously the large stimulus package has greatly effected this town. Do you think upping the stimulus package could bring many other towns out of their struggles and trying times? Where do you think the balance is between putting into effect huge stimulus packages and saving cities from their destruction?
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5 comments:
I've recently heard (but not verified) that disability and welfare payments did not increase for 2011. The stimulus package, which helped this one town and the CEO's of Chrysler, but now there is a shortage for others who also depend on government assistance...
The stimulus packages that are given to these town in need do not seem to realize that the problem is a long term one. There is a reason for speculators and arbitrators. They are the undertakers in our capitalist economies. Throwing money at problems like these gives a short term solution to a lasting problem. Instead of using the money for a short term solution, the money should be invested in an infrastructure that will contribute to a lasting township. Possibly focusing on their comparative advantages in the area. The sad truth is, in some cases, the towns may be beyond the point of reviving.
I have no problem with the government stimulating these towns in turmoil or more importantly these people in turmoil as long as its done with a way to collect revenue in the future. If there is a long term plan to account for the large stimulus packages during the upsides of business cycle then the stimulus spending will not have a great effect in the future. The problem with "today's" spending is the effect on future generations is so great that it will be very difficult for these generations to fully repay a stimulus package that did not benefit them.
I agree with the first comment because not only are others getting affected with the increase in stimulus packages but also there is a limit to how much money can be given away. After all the US is already in debt, where is the rest of the money going to come from?
I think the stimulus has done a lot more benefit than people realize. Its true that not everyone got their fair share of the money, but we can only imagine what the country would be like without it. Even though the stimulus did bailout the CEOs, it also helped many people keep their jobs. The goal was not to save every town, but to give just enough boost to keep our economy moving.
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