Originally Posted by licence2kill
For everyone here advocating fiscal stimulus, why not monetary stimulus?
Because the trade debt means that most of the money that would be spent would leave the US economy.
I give you $300 and you go out and buy a made in China TV most of that money goes out of the US economy to China.
I pay you $300 to build a road, or another public work (similar to FDR's PWA projects), that money goes in your pocket (which you then spend buying the new TV sending that $300 out of country), but I also buy road base, asphault, and tar which puts others to work here in the US. It also allows me to collect income taxes from you and everybody else.
TL;DR you give money to people they spend it on foreign manufacturing which transfers that move out of your economy. You make people work for money you are forcing that money in to your manufacturing and your economy.