- An upfront investment of $50 billion from the surface transportation reauthorization bill for roads, rails, and runways to create thousands of quality jobs in the short term.
- Continuing to allow businesses to write-off the full amount of new investments.
- $30 billion to modernize at least 35,000 schools and $30 billion to help states and localities retain and hire teachers and first responders.
- A new tax credit for this year focused on small businesses and that gives businesses that add jobs and wages a tax cut equal to 10 percent of wages added up to $500,000.
Where are similar ambitious attempts at engineering growth in the U.K. economy? Merely cutting corporation tax and the highest tax rate will not revive the British economy. In fact, it ties our Chancellor to that most foolish of economic ideas: trickle down economics.
And most importantly, President Obama's stimulus would be followed by significant debt reduction. For every $1 in new revenue, there will be $2.50 of spending cuts. Therefore no-one can classify President Obama's plan as reckless spending, because all he is doing is giving the American economy a much needed jump start to ensure that it does not slip into another depression.
It is worth remembering that when President Obama came to power, there was a great fear that America was on the verge of economic depression. Through his initial stimulus package and bailing out the auto industry, the President not only prevented a depression, he decreased unemployment and gave the country a decent level of growth, given the appalling economic climate. There is still a long way to go before America can say they have truly recovered, but the President's economic policies have set them on the right path.
So the next time George Osborne or any Conservative tries to claim that austerity is the only way to recovery, show them the raw economic data that proves them wrong.