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Monday, March 25, 2019

From The Century Foundation

It’s that time of year again. That glorious weekend when thousands of uniquely dressed conservatives descend on Washington, D.C. to celebrate being the political advocates for upper-class, white, heterosexual Americans.

For those of you who were not invited and will be watching from home, here are five truths you won’t hear at CPAC:

1. We need more government spending, not less.

The U.S. is currently suffering from too little investment, not too much. As a result, economic growth remains sluggish, and unemployment is still high. Economists refer to this as a “liquidity trap,” and cutting spending, or austerity, is the wrong answer. Deficit hawks in the U.K. continue to demonstrate that austerity budgets during periods of sluggish demand push countries into recession.

The way out of a liquidity trap is increased government spending. What the economy really needs right now, according to Century Foundation and Economic Policy Institute fellow Andrew Fieldhouse, is a $2 trillion stimulus, not spending cuts. Fieldhouse suggests that an additional $2 trillion in spending could increase GDP by $8.4 trillion.

Of course, that $2 trillion needs to be invested in “high bang-per-buck” spending. Which brings us to…

2. Government spending on infrastructure helps business and creates jobs.

Government spending on infrastructure projects boosts the overall economy. The nonpartisan Congressional Budget Office says that each $1 spent on infrastructure can boost the economy by as much as $2.20.

And, as President Obama reminded us in his State of the Union address:

“Ask any CEO where they’d rather locate and hire: a country with deteriorating roads and bridges, or one with high-speed rail and Internet, high-tech schools, and self-healing power grids?”

The most promising infrastructure investments are those involving public-private partnerships – projects in which private companies team up with federal, state, or local governments. Private companies usually do the building but they also invest in the project. Century Foundation senior fellow Michael Likosky says these public-private partnerships are the main way to “drive down the cost of doing business” on major infrastructure projects.

When the government can leverage spending with private money to build public projects that grows the economy and creates jobs, it’s a win all around.

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7 responses to “5 Truths You Won’t Hear At CPAC”

  1. The fact that investment by the public sector is desperately needed to get the economy on solid ground, stimulate growth, reduce unemployment and attempt to repair the damage done to our infrastructure by decades of neglect should not be questioned.
    With the private sector more interested in investing overseas in the pursuit of a higher return on investment, the only option to get them on board is for the government to invest in infrastructure, modernization, R&D and education.
    The reason this issue is virtually banned from the CPAC, in addition to ideology, is because government investment would accomplished its intended goals, and the GOP relies on a weak economy and relatively high unemployment to win seats in 2014.

  2. nobsartist says:

    CPAC? This is nothing but a collection of corrupt idiots. I am sure the punk governor , DICK snyder, from michigan will be there on his step ladder.

  3. charleo1 says:

    I can ignore a lot of things coming out of the Republicans, and their mob
    collaborators, the T-Party. You have to, or you could wind up taking the
    very psychotropic medications, many of them need so desperately.
    I can take their pretensions to actually care about the social issues.
    And the way they drape themselves in the flag, and lay claim to the high
    moral ground. While turning their backs to the poor, And, the ever present
    cocksure certainty, with which they spew out some of the most ridiculous
    things you ever heard. It’s hard to listen to their intolerance, scapegoating
    and, dog whistle racism. And, even harder, when they insist they don’t
    know what you’re talking about. When they damn sure do know.

    But, the thing that is the most unforgivable, is their willingness to use the
    economic crisis, and with malicious intent and purpose. And, extend that crisis,
    to further their political goals. Is it too cynical to believe, since the economic
    hardships were not visited nearly so much on the wealthy, as the people of
    more modest means? Romney’s 47%, could endure the brunt of unemployment,
    depleted savings, and the loss of their homes. So their candidates could say,
    “Obama has made the economy worse, elect us, and we’ll fix it?” I not only
    believe they did, but are continuing to pursue a political agenda that calls for
    them to govern aganist the best interests of their Country.

  4. TZToronto says:

    It’s to the advantage of the ruling elite to keep people as ignorant as possible. Pre-K funding would do just the opposite. Children arriving in Grade 1 with some real knowledge, instead of just play experience, have a head start on their education (which is why the program was called Head Start). Early education is like bootstrapping. Without early education, people end up with no boots at all.

  5. clarenceswinney says:

    Recent IRS study of wealthiest 1% revealed More than 10,000 households paid no taxes anywhere in the world and more than 35,000 paid no USA income tax. Incomes of $10 million up paid 1% or less in Payroll Tax

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