The conversation between Squawk Box Anchor Becky Quick and legend of finance Felix Rohatyn got me thinking.
Mr. Rohatyn was lamenting that the stimulus bill didn’t have more infrastructure spending in it (watch the clip below). He cited the usual reasons we hear about those kind of public works projects: they get people back to work right away, and we all get the benefits for years to come when we use the roads, bridges, etc. And yet, out of the $789 billion stimulus, only $50 billion is going to infrastructure.
There may be a reason there wasn’t more infrastructure spending in the American Recovery and Reinvestment Act. Members of Congress may have been fearful about just whom they would be helping if they spent more money on big public works projects. Why? Because they could face the prospects of having to defend allotting taxpayer money which gives jobs to illegal immigrants.