That's market interventionism right there. While I definitely agree that incentives like this are great compromises and (in theory) are win-win, it'd be hard to pass with the "limited government" types...
Yes it does. But it benefits directly just the construction workers, and that's just small part of workforce. Another problem is, when investments into the infrastructure end (and they can't last forever) those people are unemployed again. Not enough permanent jobs created...
Those manufacturing jobs lost in last 2 decades coming back would be more permanent solution and with much less expenses from government.
But do you know, what would be (IMO) good compromise kind of stimulus, both left and right might find appealing? Not tax or debt funded stimulus, but forced investment.
Let me explain: Rich people would by forced to invest their money in some sector American economy, that is generally considered in need of improvement, for example alternative energy. Let's say 20% added to their typical tax rate, but those 20% wouldn't be taken by state and redistributed, instead state will just tell the people, they must invest it into nuclear, hydro, wind, solar or geothermal power plants in America. Now what kind of energy they choose and where they invest, that's completely their choice.
The advantages are :
1. Less corruption, government favoritism and the decisions should be driven by sound market factors (not like govt subsidies).
2. Creation of jobs in US private companies and reviving the economy
3. Rich people might find it more acceptable, when compared to taxes, because they would still own their investments and should make a rpofit when they invest wisely.
Of course you can't use it to build things like roads or schools, because everyone knows those would be likely unprofitable. On the other hand energy production is almost always profitable enterprise.
not to mention the oil lobby.
Overall, though, this is definitely the sort of thing we should be talking about as a country. IIRC America gets better solar exposure than Europe meaning solar power is even better for us.
Infrastructure is a passive investment, and it's more than just roads and such. You need to maintain it (there's a lot of bridges that need maintenance) and in the case of trains and the like. there's the conductors, air-traffic controllers etc. to employ.