DON'T COUNT ON OBAMA'S 50 BILLION DOLLAR INFRASTRUCTURE SPENDING TO CREATE JOBS

I've said it before and I'll say it again, there will be no meaningful recovery of the economy without new jobs.  But I wouldn't count on Obama's plan to create new jobs by spending 50 billion dollars on infrastructure.   Creating infrastructure jobs will not directly impact the areas of unemployment among the poorly skilled workers,  those hardest hit by high unemployment.  When current and newly employed skilled workers spend their earnings there may be some residual job creation, but in my opinion it's highly unlikely to have any significant impact on unemployment overall. 

When the State of Missouri received federal funding for road improvements in the last round of stimulus spending, the only thing I saw locally was some street resurfacing and a lot of new roundabouts that were not really needed.  Did it create more jobs locally?  Not that I'm aware of.  It appears that all the work was done by persons already employed by city street and state highway departments.  So I guess it did keep those people working and good for them.  But there was no significant increase in employment and I'm sure it will play out much the same on the national level.

So how will this affect the stock market?  We might see some temporary gains because of additional funds being pumped in to the economy, but it's unlikely to last.  Big infrastructure firms and their shareholders are likely to benefit most of all.  We're also likely to see a severe market correction, as taxpayers who are spooked by runaway government spending and the ever increasing threat of massive new tax increases, tighten down even more on discretionary spending. 

If they want to create jobs, why not invest the 50 billion in partnerships with business owners who have proven track records of starting and building businesses and creating new jobs?  It shouldn't be that difficult to identify 50,000 U.S. businessmen with successful track records, loan each of them $1,000,000 to start new businesses on the condition that they hire at least 20 employees.  This would instantly create a million new jobs.  The business man would benefit as the owner of a new business, the government would benefit by having a chance to reclaim the money loaned out from successful business ventures.  While they may lose some from businesses that fail, it's better than infrastructure spending where there is no repayment at all.  Taxpayers would benefit by having jobs and residual jobs created by increased spending from a million newly employed.  Oh and don't forget, the 50 billion dollar spending package on infrastructure was just the amount proposed to get the program started,  so even more taxpayer dollars would be spent on future projects. 

However, with the type of government and business partnerships I'm proposing, if the first 50 billion in partnerships was successful, then the loan repayments could go toward creating new partnerships between government and business leaders, whereby even more jobs could be created, without additional costs to taxpayers.  Of course it will probably never happen, but wouldn't it make more sense?  As for those who would argue the dire need for infrastructure spending, I couldn't agree with you more.  We definitely need infrastructure spending, but the money for infrastructure could and should come from increased tax revenues due to job creation, not the other way around.