posted by Charles on .
During the middle 1930s the WPA (Works Progress Administration) put unemployed people to work building bridges, roads and school paid for by posting US Bonds. Why could that not work to solve economic and similar problems today?
Sounds like a good idea. However, if the government borrowed more money, many people would object to the increase in federal debt.
The WPA was paid for by posting US Bonds with the phrase "Reinvest in America" Couldn't the money now spent on unemployment and job retraining be so much better spent on a new version of the WPA than simply paying unemployed people a check every week for nothing in return?
The point I was trying to make is that government bonds are actually loans that the government must repay. The bond holder is assured that she will receive interest as well as the face value of the bond when it's redeemed. The government that issued the bond is responsible for repaying this loan.