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overall the infrastructure they have built has put this country in a position to achieve dominant superpower status the claim that infrastructure spending lead

by riggins 13y ago

overall the infrastructure they have built has put this country in a position to achieve dominant superpower status the claim that infrastructure spending leads to economic prosperity/dominance sounds pretty extraordinary to me.

ekianjo 13y ago
> the claim that infrastructure spending leads to economic prosperity/dominance sounds pretty extraordinary to me. Isn't it what the US has been claiming all the time? With the FDR New Deal theory ?
- AJ007 13y ago
  This is what Japan has been doing since their dominance in the 1980's fizzled out. In both the US/FDR case and Japan's, I believe the infrastructure spending was seen as a way to re-ignite growth while also creating something long lasting. There certainly is some truth to the long lasting piece. A country with poor infrastructure will have a very difficult time growing. What is controversial is building things either few people use or are far more expensive than they should be. On the flip side, infrastructure has to be serviced to remain viable. In addition to using money that is "borrowed" one way or the other, the maintenance cost is created as well. Easy to get carried away.
  - ekianjo 13y ago
    Oh, I'm not saying that I embrace the theory (I actually am against such policies - most of the times they are used to get people re-elected), but I was just mentioning it's still being regarded as a valid way of creating jobs and stimulating the Economy by numerous economists.
  - epaladin 13y ago
    In Japan there was a good deal of abuse of funds in the name of infrastructure. Investing in creation of high speed rail lines: clearly beneficial. Concreteing nearly every riverbed in the country: ???.
- judk 13y ago
  New Deal built stuff people needed, not just statues of shopping malls.
anigbrowl 13y ago
Well obviously you could spend wastefully, but try being economically dominant without infrastructure.
bobjordan 13y ago
Just as capital investment can lead to increased efficiency and drive growth and prosperity within a firm, public infrastructure can lead to the same type of net gains for society at large. Ultimately, it increases the rational real options available for further investment, and this creates potential future upside where none previously existed.

by riggins 13y ago

ekianjo 13y ago

> the claim that infrastructure spending leads to economic prosperity/dominance sounds pretty extraordinary to me. Isn't it what the US has been claiming all the time? With the FDR New Deal theory ?

AJ007 13y ago
This is what Japan has been doing since their dominance in the 1980's fizzled out. In both the US/FDR case and Japan's, I believe the infrastructure spending was seen as a way to re-ignite growth while also creating something long lasting. There certainly is some truth to the long lasting piece. A country with poor infrastructure will have a very difficult time growing. What is controversial is building things either few people use or are far more expensive than they should be. On the flip side, infrastructure has to be serviced to remain viable. In addition to using money that is "borrowed" one way or the other, the maintenance cost is created as well. Easy to get carried away.
- ekianjo 13y ago
  Oh, I'm not saying that I embrace the theory (I actually am against such policies - most of the times they are used to get people re-elected), but I was just mentioning it's still being regarded as a valid way of creating jobs and stimulating the Economy by numerous economists.
- epaladin 13y ago
  In Japan there was a good deal of abuse of funds in the name of infrastructure. Investing in creation of high speed rail lines: clearly beneficial. Concreteing nearly every riverbed in the country: ???.
judk 13y ago
New Deal built stuff people needed, not just statues of shopping malls.

anigbrowl 13y ago

Well obviously you could spend wastefully, but try being economically dominant without infrastructure.

bobjordan 13y ago

Just as capital investment can lead to increased efficiency and drive growth and prosperity within a firm, public infrastructure can lead to the same type of net gains for society at large. Ultimately, it increases the rational real options available for further investment, and this creates potential future upside where none previously existed.