My question about Obama's stimulus plan...

[regnaD kciN]

From everything I've read, the incoming administration plans a burst of stimulus spending with the (at least partial) goal of of boosting employment through investment in several different fields, specifically infrastructure (roads, bridges, etc.) and developing alternate, clean systems of energy to free us from foreign petroleum.

Now, first off, I think such goals are obviously worthy in themselves, and national action to achieve these is long overdue. OTOH, I keep wondering how this will solve the unemployment problem. From what I've seen, it appears that unemployment is striking, in particular, white-collar office and "service-sector" jobs. (Granted, if any of the automakers go belly-up, it will also include skilled blue-collar assembly-line jobs.)

How will the stimulus plan help these people?

Energy projects seem to mainly be a bonanza for scientific researchers - chemists and engineers.

Infrastructure projects will impact, once again, engineers (this time, of the mechanical and civil variety), architects, and the actual construction workers and road crews that will be doing the hands-on work of building and repaving.

Except for the last of these, such spending on employment would seem to be targeting relatively narrow niche-markets of highly-skilled professionals, in areas where they're probably not having much trouble finding or keeping jobs right now (although I would imagine a severe building slump will affect architects in the not-too-distant future).

What of the rest? Well, as I indicated earlier, these would appear to be mainly "hard-hat" jobs, where physical strength, stamina, and the ability to operate machinery such as bulldozers and construction cranes would be of paramount importance -- qualities in which, I would estimate, a majority of the white-color and service-sector unemployed I mentioned above would be at least somewhat lacking. I would think that, say, the ability of a laid-off forty-something assistant bank branch manager to do as well on a road crew job as someone in their late teens or early twenties, just out of high school or vocational college, would be dubious at best. If nothing else, age and unfamiliarity with the sheer physicality of manual labor would seem to put them at a pretty severe disadvantage.

So, is this the case? Or am I missing something? Is it true, as it appears to me, that Obama's stimulus plan, however laudable, would be of little specific benefit to those whose employment has been the most affected in the current recession? I'm not saying that such a plan shouldn't be attempted; as I said before, the benefits from energy and infrastructure investment will be huge. But I can't help thinking that, as a plan to ease the unemployment burden, get more money in the pockets of those most hurt by the downturn, and thus get the economy moving again, it may prove seriously ineffective. Can you please show me where I'm wrong on this?

:shrug:

[sandnsea]

1. White collar workers manage

cconstruction companies too. Construction companies have IT departments. The laid off bank manager will also have a job back if companies start depositing money and taking out loans until they get their payment from the government.

[shraby]

2. Also people with money to spend and save also

buy stuff which puts the retail people back to work as well as day car center people, restaurants, ad infinitum.

[Deja Q]

3. Yup

to both

:)

[Myrina]

5. ... that was my thought exactly .... I'm a Project Manager ...

... and my mental light bulb went on in a hurry !!

Someone's gotta plan, manage, coordinate, communicate, etc these initiatives ... and hardhats onsite need work-clothes/boots, tools, and places to eat breakfast/lunch ... so really I can see this stimulus affecting all sectors of the employment ranks ...


:)

[fasttense]

4. I have the same question.

What the proponents of this Obama massive infrastructure project claim is that people with construction jobs will trickle down their money onto the rest of us.

I'm sure construction workers and the handful of managers and administrative support people they employ will more likely spend what they have then the uber wealthy, but I really think it is Not enough.

Construction jobs frequently and regularly go to illegal immigrants. Not that I mind illegal immigrants having jobs, they too will spend in order to pay for necessities, but it is not an industry that is noted for its good paying jobs. Their wages are low and their benefits are almost non-existent.

Yes, it's a good start but it wont impact the economy immediately or forcefully enough to stop the 2nd Republicon Great Depression.

There needs to be some kind of manufacturing stimulus and a big pay hike for those on the very bottom like a $10/hr minimum wage increase. There also needs to be an increase in tax payments by the uber wealthy who skim off the top billions they have not earned. Obama has some plans to encourage manufacturing and tax the rich but they are not well defined.

It's not a bad start but it wont stop America's downward spiral.

And it wont give a job to anyone I currently know to be unemployed.