More Stimulus Outrage: 6 Billion For Broadband In Rural Areas
If only I could get online...
In fact, the incoming administration has proposed spending $6 billion on wiring rural areas and urban centers [for broadband internet]
NYTimes
It’s in the proposed stimulus. Why should I we have to pay for this?!
$2.8 billion for loans to spur rural broadband
$150 million for emergency food assistance
$50 million for regional economic development commissions
$1 billion for “Periodic Censuses and Programs”
$350 million for State Broadband Data and Development Grants
$1.8 billion for Rural Broadband Deployment Grants
$1 billion for Rural Wireless Deployment Grants
More Details @ ElementaryFinance
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There are many good reasons that WE should pay for this. First of all, by bringing broadband to rural areas, suddenly a whole new market opens up for e-commerce. Wouldn’t it be great to know that little mom-and-pop online stores can now reach an entirely different demographic? Second, imagine a world opened up where you can now buy wholesale products like hand made clothing, furniture, or even things like specialty soaps from small businesses. Third, look at individuals who sell goods on ebay or craigslist. without universal broadband, access to these goods is all but lost in rural areas…..to me, it seems like a great are to put money into since it will without a doubt increase spending!
What’s funny is the notion of spending our way out of a crisis.
Read and educate yourself: http://www.dallasfed.org/news/speeches/fisher/2008/fs080528.cfm
This is a primary source. You now know that the amount of debt we are carrying is going to bankrupt our nation. We’re devaluing our currency and our ability to continue to pay the interest.
We shouldn’t have passed the TARP bailout. This is just adding more pressure to a faltering system. Lot’s of folks worship capitalism until it costs them something. Then everyone is in for bailouts.
So whether a new market for e-commerce exists is irrelevant.
Scott, why can’t private companies do it then instead of the government? Supply and demand economics makes sense to me. And who’s to say that with broadband these mom and pop store owners will become e-commerce experts over night.
I agree with Bob on this one.
Thanks to both of you for reading HipTics and adding your opinions!
That stuff is tough to justify. Isn’t this an emergency? Those don’t sound like emergencies.
Cfro, YOU should love this because you live in a rural ass area…I think.
While I’m all for giving everyone access to the internet (we are currently behind on a global level), I am not sure if this is what is needed right now…
on the other hand, if you understand supply and demand, especially aggregate supply and demand curves, you would know that one theoretical way a country can get out of a recession is for government spending (a component of GDP) to go up to make up for the lack of demand. This as I said above is in theory can bring the economy back up to speed, there are other ways that tell a different story.
Though I don’t fully believe this, many economists do. I am a critical observer of my government and I don’t put blind faith into it, but then again this has the potential bring the nation into a the information age and with that the capability of creating new seriveces/products in those areas.
I still can’t get over the amount of money that has been pushed for these bailouts. I’m fully boggled over it. Shit needs to stop.
If we’re handing out links, this one is pretty good:
http://www.smartmoney.com/Investing/Economy/Stimulus-Plan-Placebo-Effect/#
His disdain of democrats is a little over the top, but he doesn’t really show it there.
Gov’t deficits are suppose to get money laying around moving (stimulating the economy), but he offers a good counter to that notion.
whats wrong with using satellite service? that’s available in rural communities… it may not be as good aas broadband, but it still gets the job done. the only people this is going to help are the CEO’s of broadband providers. We might as well just donate our money to them directly!