- January 2011: Vol. 4, Number 1

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Tackling the U.S. Unemployment Problem: Investing in Infrastructure Without Increasing Deficits or Taxes

by Malay Bansal

High unemployment is one of the most important issues the U.S. economy is facing, and one of the most effective ways to tackle this problem is through investments in productive infrastructure. Here is an idea that will encourage private investment in infrastructure without requiring increases in deficit or taxes, along with steps needed to ensure that the program will be effective.

The high level of unemployment at 10 percent, or 17 percent if you also count the underemployed, is one of the biggest challenges the U.S. economy faces today. Consumers represent about 70 percent of the economy. People without jobs can’t spend as much on goods and services, let alone buy houses, which is another significant and related issue. U.S. companies have managed to increase profits partly by reducing costs and spending, which also does not help the economy grow. QE2, the quantitative easing program just started by the Federal Reserve, is meant to help unemployment indirectly by driving i

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