Once dismissed as too slow to address America’s quick slide into crisis, New Deal-esque public works projects are becoming increasingly attractive as long-term economic troubles look likely to set in, the Los Angeles Times reports. Infrastructure spending will likely be a major component of the upcoming Obama-backed, multibillion-dollar stimulus package Democrats will propose to Congress.
One think tank estimates that $75 billion in infrastructure work could create 1 million new jobs, while an economist says that every dollar of public-works money adds $1.59 to the GDP. Many states have pre-planned projects just awaiting funding, but not everyone is so enthusiastic. “Practically speaking, large-scale construction projects of any type require years of planning and preparation,” the Congressional Budget Office has said.
(Read more financial crisis stories.)