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Kenneth C asked in Social ScienceEconomics · 1 decade ago

Is pork good for the economy?

I am honestly looking for a non partisan purely economical view of the stimulus plan. Allegedly, it has a lot of pork in it. A billion for the census bureau, etc. I am curious as to whether or not it matters as long as money is circulated throughout the economy. We have done the top down approach to stimulus. What about a bottom up approach, as what the Democrats are trying to do with their social programs.

So to sum it up, does it matter how the money is spent as long as it is spent, or is it more effective to do tax cuts, infrastructure, target spending the money, etc.?

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  • 1 decade ago
    Favorite Answer

    if a defense contractor is allowed to build 3 more aircraft carriers than is needed ,that is pork, it helps the contractor and the people it employs ,these people hold their jobs for a longer time and their wages support many retailers and service industries. but what to do with 3 more aircraft carriers ,you can't eat them. you have boosted the local economy but a needed commodity has not been produced. if you don't mind having extra carriers around the economy only requires the money to be spent,it does not require value for the money.

  • Anonymous
    1 decade ago

    Sure it matters. Some spending will create jobs;some won't. Which kind do you think will help revive the economy? For instance, there's money set aside to help Philippine Veterans *in the Philippines.* This might create two or three jobs, but the same money spent in the US might create many more jobs.

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