The key difference between Ike and Obama is that America could afford that public works project, and its need went further than creating public-sector jobs for political purposes. We hadn’t sunk ourselves into tens of trillions in future entitlement liabilities or trillions of existing debt from previous public-works projects.
When Ike signed the Federal-Aid Highway Act in 1956 the publicly held federal debt was 52.0 percent of GDP. In 2007 it was only 36.8 percent.
However, he is right about future liabilities being much higher today than in Ike’s time.
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