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People are lending money to governments at extremely low rates, and construction costs are extremely low. New Jersey's finances would've been fine if the projec
by natrius 14y ago
People are lending money to governments at extremely low rates, and construction costs are extremely low. New Jersey's finances would've been fine if the project had proceeded. Paying down government debt during a recession is contrary to every economics textbook I've seen.
- protomyth 14y agoResearch the Harding & Coolidge vs Hoover approach. Betting that interest rates can be kept low is not a good policy. It is very much like betting on a high rate of return like many public pension funds.
- jonknee 14y agoYou can lock in rates through issuing bonds which is how these things are typically financed. Variable rate debt is fairly rare here.