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Wed Jan 30, 2013, 06:47 AM

Our infrastructure is crumbling. There are potholes, dangerous bridges. decaying buildings. [View all]

Major investment is needed.

http://www.thefiscaltimes.com/Columns/2013/01/29/One-Investment-that-Can-Reduce-Our-Long-Term-Debt.aspx#page1



Suppose we could enhance our long-run growth prospects, reduce our long-term unemployment problem, and reduce our expected future debt at the same time. Would that be a policy worth pursuing?

Infrastructure spending in an economy such as ours, one with high and persistent unemployment and considerable infrastructure needs, has these features. It puts people to work on projects that promote economic growth economic growth is one of the best ways to reduce the long-run debt burden and money spent on infrastructure maintenance and repair saves us money in the long-run.
How can spending more now, which increases the deficit, decrease our long-run debt burden? Consider spending on infrastructure maintenance and repair first, and think about a similar situation for households and firms. When a household hits hard times due to unexpected expenses, its possible to delay routine maintenance on things such as the car that is needed to get to work each day. The same is true for a business. When times are tough, maintenance on the production line, the trucks needed to deliver goods, and so on can be put off. But it cannot be delayed forever, and the household or business may need to borrow money to pay for the maintenance and repairs even if debt burdens are already relatively high.

Read more at http://www.thefiscaltimes.com/Columns/2013/01/29/One-Investment-that-Can-Reduce-Our-Long-Term-Debt.aspx#AUxtdrPcPGQZ6C9I.99

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Reply Our infrastructure is crumbling. There are potholes, dangerous bridges. decaying buildings. [View all]
mfcorey1 Jan 2013 OP
mattclearing Jan 2013 #1
Buzz Clik Jan 2013 #12
lunasun Jan 2013 #25
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lunasun Jan 2013 #29
mattclearing Jan 2013 #55
Egalitarian Thug Jan 2013 #51
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graham4anything Jan 2013 #2
GeorgeGist Jan 2013 #8
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lunasun Jan 2013 #31
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A HERETIC I AM Jan 2013 #40
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Chathamization Jan 2013 #3
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RC Jan 2013 #23
graham4anything Jan 2013 #36
Democracyinkind Jan 2013 #4
DaveJ Jan 2013 #20
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Dustlawyer Jan 2013 #21
datasuspect Jan 2013 #44
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NoPasaran Jan 2013 #58
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coldbeer Jan 2013 #7
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deutsey Jan 2013 #10
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canoeist52 Jan 2013 #18
green for victory Jan 2013 #19
Buzz Clik Jan 2013 #27
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AngryAmish Jan 2013 #24
datasuspect Jan 2013 #47
NinetySix Jan 2013 #30
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Egalitarian Thug Jan 2013 #54
RKP5637 Jan 2013 #32
jwirr Jan 2013 #43
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colsohlibgal Jan 2013 #52
MFM008 Jan 2013 #53
Spider Jerusalem Jan 2013 #57