The Key to Boosting the Economy: Investment in Infrastructure

Lawrence Summers advocates “substantially increased public infrastructure investment … Stated boldly: Public infrastructure investments can pay for themselves….What is crucial everywhere is the recognition that in a time of economic shortfall and inadequate public investment, there is a free lunch to be had — a way that government can strengthen the economy and its own financial position.”

William Galston, writing in the Wall Street Journal points out that “the Great Recession accelerated the decline: The majority of the jobs that unemployed workers have found thus far pay significantly less than the ones they lost during the crash.”

“Government can mitigate these trends but cannot halt them….In the longer run, wealthy democracies will have to invest more in basic research that boosts innovation and education that raises skills while tearing down barriers to business formation and entrepreneurially minded immigrants.”

“But that is the work of a generation. We need a plan to get from here to there. The workers that technology is forcing down the income ladder must be enabled to sustain their families and offer opportunity for their children. Like it or not, this will be a core function of government in coming decades.”

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