Quote:
Originally Posted by CliffFletcher
That's the problem with how we plan and pay for public infrastructure. We should hold off during boom times, when employment and costs are high. Then ramp up construction in downturns, when employment and costs are low. Counter-cyclical spending. But it runs contrary to our intuitions, and a lot of people resent the government spending money when their own finances are looking bad.
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Absolutely. Hard to talk about stimulating the economy in a downturn when you're already tapped out. This would definitely smooth over the bumps in the road.
These extreme highs and lows cause inefficiencies as well (spending on infrastructure when costs are high as you mentioned, for example)