The thing everyone has missed about zero interest rates is that it kills animal spirits. Who is going to make cap ex spends into an economy to be slowed at the first sign of life by increasing interest rates. Therefore we can't depend on ordinary incentives to bring the economy back. The last 8 years have proved this.
So tell companies they can repatriate the $2 trillion they are holding overseas at a reduced tax rate of 25% and they can pick the infrastructure project where their money would be spent. Have contractors post projects on a website, their idea or at the behest of a corporation, of the infrastructure project most likely to get funded. This eliminates "bridges to nowhere". Contractors don't have to be approved by the government just submit their bids with a performance bond (shut that business prevention department down). Then you have businesses picking projects that would grow their businesses and creating jobs.
The result would be a suede cap ex spend by corporations, a $500 billion dollar infrastructure spend not costing the government a dime and a return of animal spirits in the economy. With the tax revenues generated by the increased economic activity the government could come behind and do the essential projects left off the list.
At that point you would have to raise rates to prevent inflation. Problem solved!
So tell companies they can repatriate the $2 trillion they are holding overseas at a reduced tax rate of 25% and they can pick the infrastructure project where their money would be spent. Have contractors post projects on a website, their idea or at the behest of a corporation, of the infrastructure project most likely to get funded. This eliminates "bridges to nowhere". Contractors don't have to be approved by the government just submit their bids with a performance bond (shut that business prevention department down). Then you have businesses picking projects that would grow their businesses and creating jobs.
The result would be a suede cap ex spend by corporations, a $500 billion dollar infrastructure spend not costing the government a dime and a return of animal spirits in the economy. With the tax revenues generated by the increased economic activity the government could come behind and do the essential projects left off the list.
At that point you would have to raise rates to prevent inflation. Problem solved!
