News - National
No unemployment impact from road and bridge spending
Posted: Jan 11, 2010 7:23 AM by Associated Press
An Associated Press analysis finds that spending on roads and bridges under the stimulus plan has had no effect on local unemployment.
And the boost to the construction industry has been minimal. Local unemployment rates rose and fell regardless of how much stimulus money Washington poured out for transportation. In Marshall County, Tenn., which got a healthy dose of road money, local officials say unemployment continues to rise.
Economist Thomas Smith of Emory University says, "As a policy tool for creating jobs, this doesn't seem to have much bite."
President Barack Obama wants another stimulus bill that relies in part on more road and bridge spending. He says the projects are "at the heart of our effort to accelerate job growth."
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