Veronique de Rugy: President Donald Trump’s proposed $1 trillion government infrastructure stimulus plan
In this episode of The Heartland Institute’s weekly Budget & Tax News podcast, research fellow and managing editor Jesse Hathaway talks with Veronique de Rugy about President Donald Trump’s proposed $1 trillion government infrastructure stimulus plan.
De Rugy says there are more ways government infrastructure plans can go wrong than ways they can go right, saying she has serious doubts the effectiveness of fiscal stimulus, particularly at this time, and they note that infrastructure projects are particularly ill-suited for boosting the economy.
Government infrastructure spending is seldom sent to areas hardest hit by economic recession or used for the most worthy of projects, de Rugy says, a problem that greatly limiting the government’s ability to spur economic growth. Additionally, de Rugy explains why infrastructure projects are a poor way to increase employment rates. Such government works projects often employ people who are already employed, instead of employing people who aren’t working elsewhere, defeating the government’s efforts to create a significant number of new jobs or reduce overall unemployment.