With the effects of the $787 billion stimulus package still being debated, President Barack Obama asked for an additional $50 billion on Monday for public works projects intended to increase employment and stimulate the economy. Obama said his goal is to use the money to improve roads, train systems and airport runways, creating new construction jobs across the country. Although the president's goal may be admirable, it is hard to say if his attempts at employing Keynesian economic principles are working.
The most obvious question that has to be asked in this situation is where is the money going to come from. With the country's budget deficit continuing to grow, the last thing most people want to do is spend even more money, especially when they are unconvinced that it will bring down unemployment. Judging from Republicans' unwillingness to even extend unemployment benefits over the summer, the chances of a smaller stimulus being passed so close to the November elections is minute.
It is also questionable how much the plan will even help. As economists continue to debate the effectiveness of the stimulus package, many Americans question whether a number that amounts to a mere six percent of what we have already committed can really make much of a difference. If $787 billion couldn't get the unemployment rate under 10 percent, how will $50 billion accomplish that task?
When dealing with legislation that manipulates the economy, it is often difficult to gain public support because the results might not be immediately felt on a personal level. However, one thing that can be said is Obama's suggestion would most likely not hurt. Although still a large amount of money, the proposed amount is small compared to the magnitude of what has already been authorized. If it has even a small effect on improving the economy and putting people to work, the plan may be worth it.
The biggest problem with Obama's plan is that it isn't a long-term fix, but merely a Band-Aid for a bullet wound, creating temporary jobs instead of permanent ones. In this situation, the solution needs to be big enough to combat the problem. Instead of continuing to throw money at the country's economic struggles, the Obama administration needs to think in a more innovative manner and find a way to create permanent jobs for a lasting solution.
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