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It's not really ridiculous when the federal government controls the power to issue currency. Any infrastructure improvement that occurs at the local level needs
by omegaworks 4y ago
It's not really ridiculous when the federal government controls the power to issue currency. Any infrastructure improvement that occurs at the local level needs to be paid for by either tax or debt. Taxes take money out of a local economy and debt is typically more expensive for local municipalities.
The federal government can borrow at extremely low interest and literally create currency if needed. If the infrastructure expands the productivity of the economy as a whole that currency creation does not contribute to inflation.
At a macro level bridges enable more efficient commerce, so issuing currency to pay for them can be the most optimal way forward for the society. If the bridge saves 1,000 farmers $150,000 in fuel/transportation cost over the course of its life, that bridge created $150,000,000 of new value in the economy.