Another rebate thread, this time political

SgtMaj

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Ok, the title lied a bit, it's pretty hard to talk politically about something that all parties supported.

That being said however, something struck me as I was driving to work today... I was thinking about how the country is slipping into a recession and then I got to thinking about prior recessions and what the government did about them... that got me to thinking about the great depression, and about how several dams and other things were built as a means of economic stimulous. Then it hit me, that in the past, when these stimulous projects were done, it didn't just put the money those workers made back into the economy, it also increased the GDP not just that year, but every year thereafter, thus making future recessions less likely and less severe.

Back to the present. That got me thinking about how this economic stimulus package could be used differently to have an even greater effect with regard to stimulating the economy.

So the stimulus package is $168 billion... That would hire 4 million, 8 hundred thousand people for year at a $35,000 salary (gross salary, insurance would still have to be taken out of that, but that would still leave them with a decent income) or more than $40,000 if they have to pay federal taxes out of that, and that would put the same money back into the economy... now what can 4 million 8 hundred thousand people accomplish in a years time at 40 hours a week for a year was my next question. To be fair, the workers would have to be "evenly" spread out throughout the country by population density. Also, all their supplies would also cost money, so instead of figuring this hypothetical situation on 4 million 8 hundred thousand, we'll cut it back to just 4 million 5 hundred thousand, which gives us 10 billion 500 million dollars to spend on their supplies... and still hires enough people to lower the unemployment rate by 1.3% which would bring it down from 5.1% last month, to just 3.8%. That hires a bit more than 1 person per 100 people, but because a support structure would be necessary for any projects they were doing, I just figure on 1 per 100. Think about how many people that is in whatever city you live near.

The first thing I thought of is that this is enough workers to be able to pick up all the roadside trash throughout the country. That trash could be put into giant landfills somwhere that could be tapped into to fuel methane power plants which increases the GDP and helps in some way to make us if only ever so slightly, more energy independant. It would also surely help out the tourism industry, as people generally find areas that are trash-free to be much more attractive vacation destinations. However, I soon realized that with that many workers, the nation's roads would be trash free in just a few weeks... but eventually they would need to be cleaned again, so I figured to clean them up 4 times that year, that would take about 8-10 weeks worth of their time. Assuming they'll also get a couple weeks off for vacation, means that there's still 40 weeks left for them to do whatever.

So I thought, well what else could they do to improve the country, since we should clearly not be paying them to just sit around for 40 weeks. So I thought, ok, let's clean up all the graffiti. Again though, I was left thinking that with so many workers, this would not take all that long. To be fair though, it would probably take about twice as long as picking up the trash would... but would need to be done less often, so I figured twice a year, 5 weeks each time, takes another 10 weeks... but that still leaves them with 30 weeks.

So I thought, well, what else can they do? 4.5 million people is a lot of labor... so I thought... well, we could have them all decend on our waterways to clean them up and make them more boat-friendly. So they could spend maybe 2 weeks just getting the trash out of the water, another 2 weeks clearing obstructions in the water, and another 2 weeks fixing up public boat ramps. That's 6 more weeks gone, but they're still left with 24 weeks to work, but the trash and obstructions would re-accumulate, so let's just say they'll have to do that twice, and that leaves us with only 20 weeks.

But now I'm out of ideas. So what else could be done with that many workers and 20 weeks? Your turn to come up with some ideas.
 

waterinthefuel

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Re: Another rebate thread, this time political

I'd rather just have my 600 bucks. Hiring 4.5 million people to find busy work for sounds like Wal Mart all over again.
 

SpinnerBait_Nut

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Re: Another rebate thread, this time political

Don't know what to do with all them people, but tread lightly on this one folks.
 

SgtMaj

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Re: Another rebate thread, this time political

I'd rather just have my 600 bucks. Hiring 4.5 million people to find busy work for sounds like Wal Mart all over again.

Oh don't get me wrong, I'm not complaining about getting to keep a bit more of my own money... at least until I go to fill the gas tank... just got to wondering, that's all.
 

rolmops

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Re: Another rebate thread, this time political

You have a great point.
Instead of a freebie that will allow us to continue on our merry way a few more weeks thereby delaying the recession a bit,your idea tweaked properly, has the potential of creating productivity instead of more passive consumerism.
The current idea of giving everybody a little bit of money to spend,will only transfer treasury money into the hands of big conglomerates with the general population as its channel.In other words,a novel way to "starve the beast".
 

Bondo

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Re: Another rebate thread, this time political

Ayuh,......

When you consider that Full Employment is when unemployment is at about 4/ 5%.....
Because this 4/5% of the labor force Doesn't Want a Job......

Where are you going to find the 4.5 Million Workers to pull this Off,..?? Mexico,..??

And,......
You'd better go back,+ read somemore of your History,.....
FDR's Back to Work programs,.. The CCC Corps, Actually caused the Great Depression to last Longer......
It was WWII that brought the country Out of the Great Depression.......
 

beerfilter

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Re: Another rebate thread, this time political

Ayuh,......

When you consider that Full Employment is when unemployment is at about 4/ 5%.....
Because this 4/5% of the labor force Doesn't Want a Job......

Where are you going to find the 4.5 Million Workers to pull this Off,..?? Mexico,..??

QUOTE]

Touche'

You read my mind , Bondo .

I do , however , wonder what kind of long term impact that money would have if spent on improving mass transit , specifically commuter rail services .
Most of these died an agonizing death starting in the early fifties as we all moved to the burbs .
The final nail in the coffin was affordable air travel .

What about grants/incentives for energy companies to furthur invest in cleaner , more efficient , power generation , and , renewable energy development ?

How about grants / subsidized loans for homeowners to install solar panels ?
PV's are pricey , but , $168 Billion , buys a crap load of them , even more if you use it as a 50% subsidy , with the homeowner paying the other 50% .

We could offer the same deal for micro-hydro and wind turbines , as well .
They also have the benefit of zero-emissions .

We could offer the same incentives for geothermal heatpumps being installed .
It won't generate more power , but they use quite a bit less power than conventional hvac systems .

ANYTHING we do to reduce our dependance on that black heroin is a positive thing , with very tangible , LONG TERM benefits .

Yes , $600 back in my pocket is nice , and , I will not be turning it down .
But , in the big scheme , it is more of an effort to throw money at the masses , for some short term benefit , to merely stave off the inevitable recession .
Recession is a normal cycle in a free-market economy .
The only reason we are worrying is that it is being caused by energy prices , along with the increasing demand for raw materials , especially metals .

If you throw money at stimulating a consumer based economy , you just end up incresing energy prices as demand for goods suddenly increases .
It merely prolongs the inevitable .

Throw that money at :
1) increasing energy supplies , renewables , especially
2) DECREASING energy consumption by promoting more efficient usage

Renewables are not a complete solution , as they are variable in nature , and , small scale plants do not have the advantage of economy of scale .
However , I'm sure the price disparity between PV costs VS cheaper , more conventional production , will continue to decrease as greater demand continues .

Of course , I also believe that we could generate a lot of power simply by replacing the treadmills in every "fitness center" with treadmills runnining generators .
May as well put all those human hamsters to good use .... :D
 

SgtMaj

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Re: Another rebate thread, this time political

Ayuh,......

When you consider that Full Employment is when unemployment is at about 4/ 5%.....
Because this 4/5% of the labor force Doesn't Want a Job......

Where are you going to find the 4.5 Million Workers to pull this Off,..?? Mexico,..??

And,......
You'd better go back,+ read somemore of your History,.....
FDR's Back to Work programs,.. The CCC Corps, Actually caused the Great Depression to last Longer......
It was WWII that brought the country Out of the Great Depression.......

Actually, really only about 2-3% don't want jobs, however, and especially now with the housing slump, there are a lot of unemployed builders out there who wouldn't mind doing a bit of physical work.

Also, we were already back into the beginning of a growth stage of the economy when WWII came along.
 

Bondo

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Re: Another rebate thread, this time political

Also, we were already back into the beginning of a growth stage of the economy when WWII came along.

Ayuh,....... Because We were already arming our Allies,+ building our own War Machine, behind the scenes........

Not because of the CCC effort........
 

arboldt

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Re: Another rebate thread, this time political

Taking Sgt Major's original post, the different economic stimulus packages of the 1930's were used to build infrastructure -- roads, bridges, courthouses, libraries, schools, parks. Many of these improvements are still being used and / or due for replacement now.

That's an excellent idea. Many of the CCC camps were in remote areas, and thus did not rely on that labor being spread across the country because they were brought it for it. My uncle was a CCC chaplain in northern Minnesota.

Now, I'm trying to not get political here, but make some observations. If this approach were suggested today (and I think it's a great idea), what do you think typical reactions would be?

The construction industry would sue to stop the program for undercutting their contracts and profits.

The unemployed would cry fowl for being required to work -- or at least work away from their families.

There would be tremendous outcries of favoritism, discrimination, unfairness to existing workers and unions.

Most of all, I wonder if they'd be able to find enough people willing to do that hard labor.

As much as I think it's a great idea, I have to doubt it's ultimate practicality. Our society has changed too much over the last 75 years.
 

SgtMaj

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Re: Another rebate thread, this time political

Ayuh,....... Because We were already arming our Allies,+ building our own War Machine, behind the scenes........

Not because of the CCC effort........

That is a good point... but still, that CCC effort has been paying us back with an increase in the GDP for a while now... it was just a thought that I had, that's all.

arbolt, you missed the biggest one... it would be labeled pork barrel and possibly, rightly so.
 
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