Originally Posted by joe
All you're doing in this scenario is shuffling the money around. Instead of the taxpayers having it, the construction workers have it. Instead of taxpayers giving money to the restaurant/bars of their choice, the construction workers give it to the restaurant/bars of their choice.
A. The construction workers would be taxpayers as well.
B. The restaurant or bars would have more available customers.
The way this is measured is the affect on GDP per dollar spent.
If you spend a dollar and GDP goes up a dollar twenty, then the multiplier effect is considered to be 1.2
Again, this is not a zero sum game.