Being Bullet's spouse, I do get what he is saying...the money spent on a sidewalk for a school should come through the county's taxes that they collect through Real Estate. Sure, the sidewalk will employ people and that will help the overall economy, however the actual amt will be a pitiance in actual results. Many governors have issues with this because when the money is gone and the project is not complet, who will pay for it? Most likely, the state will have to adjust their budgets and take it out of their own pocket. The long term results are not being properly addressed. If you live in the No VA area, for at least the past 10 yrs you get to drive by everyday through construction on major roads (95/495/395/66) and see tons of construction workers hanging out. There is no need to finish the project on time or budget, because they are hired for the entire project. Does the term over budget mean anything to anyone else here besides me? At SJAFB, they have been building new military housing by gutting them (not razing). Over 10 yrs later, they still have only completed about 50%. I work in RE, if Pulte or Hovnanian were building this development it would have been done 7 yrs ago. There is no motivation to complete on time since they have a contract with the govt. That is what occurs on shovel ready projects...people know that their paycheck is tied only to that one project, complete it and there might not be another job behind it, slow it down and you still have a paycheck.
The economy crisis did not start from the fall of the construction industry. That industry suffered the repercussions from the fall of the HOUSING MARKET. They are not the same. Not everybody buys new consrruction when they buy a home, in reality new home starts is a small % of the housing industry. Remember the majority of people buying new construction are selling the home they currently live in...somebody has to buy that home. The purchaser of any home at some time may employ a construction worker, but there is no guarantee that it will occur immediately (Bullet put in our hardwood floors, he put in our ceramic tiles and backsplash, re-did our deck...not a construction worker). However, almost 100% of home owners will employ a mtg broker or bank. Every homeowner will employ the insurance industry...i.e. AIG (it is mandated by the bank). Every homeowner will pay taxes to the county and state. These issues are all just to purchase any home, thus fixing the housing and banking industry is where the crisis really does exist. When you are just trying to keep a roof over your head, you are not spending money at Lowe's, thus if you solve that problem the rest will fall in line...hiring a construction worker to pave a road for a temporay time, does not directly correlate into them keeping their home at a high interest rate.
I do agree that military spending is an incredible stimulus. That is federal spending that will affect the entire economy, it can't be compared to research on the salt marsh mouse! The problem is that you can kiss that money goodby. The DOD has been requested to reduce their budget by 10% for 2010. The direct result will be the base hospital, gym, TLFS, NCO/O'Clubs, soccer fields, golf courses, etc. not being renovated or upgraded (construction projects)...in a time of war they would have a hard problem justifying spending money on those items while cannibalizing jets. Wing Kings are going to make their budgets for DOD, if they are ordered to decrease by 10% where do you think they will cut the cost...not the operations that is for sure! If you look back to the 90s, when the military had to tighten their belt in spending, what did they do? They created more NAF operations...in the early 90's we had our own club card, not a services Master Card, Clubs that were not profitable still remained open...now we have tri-clubs due to costs. I remember living on base, before the cuts if we had a housing issue they were out there 24/7, after it was an 8-4 M-F situation and they would deem what was essential...sorry Mam that your stove is broken, but that is a 3 DAY WAIT, since it is non-essential!
You will not see the increase in troops or pay, and most likely for 2011 if we are still in this pickle our MOCS will do exactly what they did back then...reduce pay raises from 1% above COLA to the same as fed. employees .5% below COLA. You will see committments and bonuses also change. Flyers might go back to the 9 or 10 yr committment, extending the time for that 6 figure bonus, removing the 15 yr bonus all together. IMHO the 15 yr bonus is stupid...most people have already decided they are going to stay until 20, giving them another 100K+ to stay is insane...and yes we took it even knowing we were staying. Cuts are coming there still no decision on the 22, I am full believe it will be saved, but if not expect those Lockheed employees in TX to be lining up for the sidewalk project!