Wednesday, June 27, 2012

Potholes and Commen Sense

From an op-ed piece in the June 26, 2012 edition of The Wall Street Journal (Stimulus Isn't a Dirty Word) by Alan Blinder - -

"Unlike private investment, inadequate public investment is part of the problem.  America's infrastructure needs are so huge, and so painfully obvious, that it's mind-boggling we're not investing more.  The U.S. government can now borrow for five years at about 0.75% and for 10 years at 1.75%.  Both rates are far below expected inflation, making real interest rates sharply negative.  Yet legions of skilled construction workers remain unemployed while we drive our cars over pothole-laden roads and creaky bridges.  Does this make sense?"

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.