Associated Press Report Concludes That Road Projects Don’t Reduce Unemployment.

Posted by: Jeff Gonyo on Monday, 01/11/2010

According to an economic analysis conducted by the Associated Press (AP), federal stimulus money spent on road projects did not reduce unemployment in the United States.

This AP analysis, which was reviewed by independent economists from five universities, showed that spending federal tax dollars for road construction offered little or no relief to most contractors who don't work on transportation projects.  Residential and commercial building contractors make up the bulk of our nation's construction industry, and they realized no benefit from this stimulus money.  Also, the new money spent on road projects wasn't enough to offset the thousands of local jobs that have been lost from the closing of manufacturing plants and automotive parts suppliers.

Given these facts, it appears that spending billions of federal tax dollars on road projects is a gross misallocation of scarce taxpayer resources.  For more information, please read the two Daily Reporter news articles on this subject highlighted in the PDF links below.

1-11-10-daily-reporter-reports-says-road-projects-dont-help-unemployment.pdf

1-11-10-daily-reporter-stimulus-not-doing-much-construction-stimulating.pdf