Originally posted by Darth_Alran:
i have to admit, i am having trouble understanding how cuts to the high speed rail authority are worse than raising taxes in a recession.
also admittedly, borrowing and spending bonds are a big problem, which is why i always vote no on them.
also admittedly, borrowing and spending bonds are a big problem, which is why i always vote no on them.
It's called Keynesian economics, and it's the way we spent ourselves out of the Great Depression (whatever you may say about Roosevelt's pre-war efforts, massive government spending during the war undeniably levered us out of the depression and thereby proved Keynesian economics right).
The idea, basically, is that the government steps in and spends to make up for the shortfall in spending due to the recession, and thus stimulates the economy. A high speed rail network is actually a great use of money, since it will stimulate the economy during its construction (you'll have to buy the materials and hire the workers, who will then have a paycheck to spend) and once its built (infrastructure is basically the best thing for stimulating the economy).
And Keynesianism aside, it's never a good idea to cut social services at the exact time when people need them most (e.g. cutting unemployment benefits when more people are unemployed).