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Invest in infrastructure to generate demand
The Gazette Opinion Staff
Aug. 4, 2012 12:48 pm
The government announced that the economy grew 1.5 percent in the second quarter. The reasons given for the small growth were that factory orders were down as well as exports in the face of a global slowdown, and consumer purchases were down.
Our government (president and Congress) can do little to change the global economy. With respect to the purchasing power of the consumers, it seems futile to stimulate small businesses with tax cuts. Who will start a small business if there are no buyers?
Generating consumption by investing in our infrastructure, such as highways, public transportation, education, energy etc., sounds like a more reasonable approach. Jobs will be created; products will be needed from various industries, so more money will be in circulation for purchases. Then more small businesses will open up.
Birgit Brun Coffman
Iowa City
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