Posted by
Brenda Bee on Wednesday, August 20, 2008 5:18:00 PM
President Franklin Roosevelt put
people back to work with government work projects in the 1930's and it
seems that somewhat the same things are happening now. Construction
projects of the Federal government, the states and local governments
that were authorized previous to the current conditions in the
economy are just now being undertaken and thus providing blue collar
jobs all over the nation. This worked by design before to drag the
economy out of the depression, so maybe it will work by accident
now.
There really won't be many government work projects following these
however because budgets are being cut at all levels since the tax
payers are screaming for relief. Inflation nearing 10% is also putting
the breaks on governments spending. The projects that are in the works
right now however will likely have to absorb the inflated costs with
cost overruns. (Mitch will enjoy this since writing Change Orders is
his favorite past time. This is where he gets to pay people $83,000
for a project rather than the bid price of $31,000.)
Bottom line: the tax payer is getting it in the pocket regardless.
Good news: Bridges are being repaired and replaced all over the country
so we may not see too many more bridges collapsing with any luck. BB
Headline: Governments' building projects shore up economy
http://www.usatoday.com/money/economy/2008-08-19-spending_N.htm?loc=interstitialskip
By Dennis Cauchon, USA TODAY
"Construction spending by federal, state and local governments has
reached record levels, lifting the economy and employing some
blue-collar workers despite a collapse in home building."
"Governments are on track to spend a record $300 billion this year on
schools, roads, bridges and other projects, the Census Bureau reports.
That's a 7% increase on top of a 12.4% jump last year, the biggest
increase since 1993, when the agency began tracking construction
spending."