Construction is the Achilles’ Heel of this Recovery


I posted yesterday about the most recent jobs report.  Overall the report was good news for the country. Most sectors of the economy saw increased job growth like that of manufacturing, however; job growth in construction declined by 13,000.

I have recently been saying (here and here) government investment and consumption, and not tax cuts can spur economic growth. Even though we know investment boosts the economy, Washington has decided to cut government investment; so is it really any surprise we are losing construction jobs.  Construction is an area of the economy where government can easily boost job growth.  Public works programs would lead directly to an increase in jobs in the construction sector of the economy.  Another stimulus package directed towards increased construction on things like infrastructure would provide a substantial boost to this economy.

This will not happen though.  We currently have one party in Congress who believes reducing the national debt should take precedent over recovering from the worst recession since the Great Depression.  We have one party in Congress who believes any government investment is one step closer to socialism. And we have one party in Congress who believes we can solve every problem with a reduction in taxes.  Because of this one party the possibility of another government stimulus plan to increase growth in a declining sector of the economy, namely that of construction, is off the table. The country seems so close to really turning this economy around, and it is a shame Congress is not considering every option.

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2 thoughts on “Construction is the Achilles’ Heel of this Recovery

  1. Construction really is taking hit. Mostly due to the lack of work being available & financial issues on finishing the job. Lots of cuts and ability to hire are occurring from what I have heard.

    • The industry is surely in need of some money. I really believe there should be another stimulus plan where the money goes toward infrastructure. I think that would help to instill some confidence in this recovery.

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