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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 wa
by 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 agoOh, 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 agoIn 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: ???.