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Big infrastructure projects have the problem that they cost a lot of money and time. Another disadvantage is the inherent problem all Keynesian ideas have, they
by DasIch 15y ago
Big infrastructure projects have the problem that they cost a lot of money and time. Another disadvantage is the inherent problem all Keynesian ideas have, they very much depend on timing. If you start such a project too late you severely harm a recovering economy, start it too early and it won't help at all or even have a negative impact.
- skylan_q 15y agoAlso, there is no way to show whether a government project is profitable or not. This means we can't tell whether the project actually helped or hurt the economy.
- DasIch 15y agoInfrastructure projects don't have to be profitable that is neither the goal nor does anyone care. The goal is to create a lot of jobs and a lot of income relatively fast to increase demand which helps the economy.