Tham khảo tài liệu 'a failure of capitalism: the crisis of '08 and the descent into depression_8', tài chính - ngân hàng, ngân hàng - tín dụng phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | The Government Responds as an immediate effect on unemployment. The Obama Administration has responded that the military did not request more of the stimulus package. But of course not the military doesn t want its priorities determined by civilian needs. Given politics it is a fair guess it is actually a certainty that many of the projects in the stimulus program will yield costs in excess of their benefits at least if one ignores the benefits that such projects confer on fighting the depression as distinct from simply improving the nation s transportation system education system etc. That is a vital qualification and though obvious is overlooked by many opponents of the stimulus package. In evaluating a project designed to fight a depression one must not ignore the benefits of fighting it successfully Even spending on worthless projects can be an effective and paradoxically a rather cheap response to a depression. Suppose there is a great deal of unemployment in the construction industry and there is because of the bursting of the housing bubble and the ensuing decline in the amount of home building and now of other construction as well. The government decides to build a chain of luxurious no-kill shelters for feral cats in areas of the country in which 1 77 A Failure of Capitalism the unemployment rate of construction workers is particularly high. A cost-benefit analysis reveals that the cost of the program will be 1O million and the benefit were there no depression only 1 million what the cat lovers would have been willing to pay for the shelters . But if the workers who would be employed to build the shelters and the suppliers of the building materials would otherwise remain unemployed the project will increase demand. The workers and suppliers will have higher incomes and greater confidence about the economic future and thus will spend more on goods and services and also cost the government less in unemployment and welfare benefits and pay more in taxes. .
