Mark Cuban on the need for public works

I personally don’t think a stimulus package of checks or rebates to the consumer will work. I believe consumers are so beaten up and fearful of the future that they will put it in the bank. Of course 20 years ago that would have been a good thing, These days banks don’t appear to be lending those deposits. So there is no primary or secondary stimulus impact.

Instead, having the government spend money on public works, which in turn creates jobs, will have a quick and positive economic impact. As much as it pains me to write those words, a drowning economy can’t worry about its form as it tries to get back to the surface. Sometimes you have to win ugly.

Private money is going to stay on the sidelines because we all know that there are unbelievable bargains available out there. Our money is waiting to go to equity and debt where we think we will get outsized returns. If and when those returns happen, money will come back in as new capital investment. Until then, the only liquid investor willing to put non current assets on their balance sheet is the government.

My little idea on where the government should spend money in public works projects?

Parks and Schools.

~ Mark Cuban, "Public Works, The Inauguration, and the next BailOut Scandal," blog maverick, November 28, 2008