Predict the next few years!

[Ryeland]

The money spent on that is capitol which could have been spend towards something else, say exploration to discover new oil reserves. I definitely agree in the short term that unemployment can get pretty high. Looking historically, the '1920 depression' is a great example of how to handle things, and what the results can be.

Very interesting point, from a good post.

Public works projects can have a very positive impact on the money making ability of an economy and not just creating jobs. Bigger/More Efficient Highways and Roads save companies and people money. Upgraded energy infrastructure can reduce maintenance and parasitic loss costs. Upgraded bridges can also reduce maintenance costs significantly while improving saftey and traffic flow. However these benefits need to be weighed properly against the costs to find the optimum mix of both.

Good post though IS

 

[Ironslave]

Very interesting point, from a good post.

Public works projects can have a very positive impact on the money making ability of an economy and not just creating jobs. Bigger/More Efficient Highways and Roads save companies and people money. Upgraded energy infrastructure can reduce maintenance and parasitic loss costs. Upgraded bridges can also reduce maintenance costs significantly while improving saftey and traffic flow. However these benefits need to be weighed properly against the costs to find the optimum mix of both.

Good post though IS

Yep, they definitely can have a positive impact, but the question is, what other positive impact could it have had? I completely agree with the benefits of upgraded highways/roads and such, if it will be cost saving over the alternative.... but is it? The last thing in the world needed is to build something just to put people to work...

http://www.nytimes.com/2009/02/06/world/asia/06japan.html


Edit: Hazlitt discusses this a lot when talking about the fallacy that "war is good for the economy." If destruction was good for the economy, why don't we just blow up our own buildings/bridges anyways? Productive ideas/inventions/actions can be done during the time of war, but the act of war itself is in no way benefit to the economy.

 

[Ryeland]

Yep, they definitely can have a positive impact, but the question is, what other positive impact could it have had? I completely agree with the benefits of upgraded highways/roads and such, if it will be cost saving over the alternative.... but is it? The last thing in the world needed is to build something just to put people to work...

http://www.nytimes.com/2009/02/06/world/asia/06japan.html


Edit: Hazlitt discusses this a lot when talking about the fallacy that "war is good for the economy." If destruction was good for the economy, why don't we just blow up our own buildings/bridges anyways? Productive ideas/inventions/actions can be done during the time of war, but the act of war itself is in no way benefit to the economy.

Excellent article and post. I should have qualified my above statements. You can never count on politicians to fully examine the life cycles of their projects. And while i talked solely about physical infrastructure (i am an engineering student, it was bound to happen) the non physical infrastructures are also very important. New schools, communications services, social initiatives are all very important.

That said developing better roads and bridges in major cities, where they are most needed and used, is usually always a good bet to improve money flow.

Similarities to certain areas of the case japan has endured can be seen here in Canada, with the post World War 2 expansion of Canadian Highways one can see the sections where dis-repair occurs due to the shear amount of roadway to maintain. Canada geographically is significanlty larger than the United States while having a much smaller population (~10-12% of the US) and a much more adverse climate (frequent freezing and thawing) and as such tax dollars to maintain roads are more sparse.

The real point i guess we are all touching on is, whatever we do, we need our governments to spend our money in a much more careful and well thought out manner.

 

[Ironslave]

That said developing better roads and bridges in major cities, where they are most needed and used, is usually always a good bet to improve money flow.


The real point i guess we are all touching on is, whatever we do, we need our governments to spend our money in a much more careful and well thought out manner.

For sure... if theres benefit to it and it would have some efficacious results, then yes. I just worry that the government is going to build stuff that nobody needs and doesn't provide much benefit. Austrian economists analogize this to paying someone to dig a hole, and then paying them to fill it up.

Seems we all agree though, that what the US and other countries are doing is NOT helping. We should have a mecca revolution (turn hypo loose against those currently in power, perhaps).

 

[Braaq]

Good posts IS, I think you are a bit to overly pessimistic about the possibilities. However, you may be right.

This video grabbed my attention because at the end he mentioned how we will have to increase the interest rate above the rate of inflation and that it will be hard to do. Didn't Volker do that? It was a hard proscription, but it worked in the end and lead to many years of booming growth.

 

[pegasus]

http://www.vimeo.com/3406095

A small protest in Dallas. I can see more and more of these starting to happen around the country (hopefully)..

 

[Braaq]

http://www.vimeo.com/3406095

A small protest in Dallas. I can see more and more of these starting to happen around the country (hopefully)..

ahhh my fellow Texans make me so proud

 

[lifterdead]

Good points IS. I know lots of Japanese people who have a low opinion of the massive 90's pork projects. Hell, I've seen lots of beautiful bridges all over Japan- hardly being used...

It's worthwhile noting that many prefectures are STILL dependent on government spending.

 

[Ryeland]

We should have a mecca revolution (turn hypo loose against those currently in power, perhaps).

Lets not be too hasty here Ironslave. We should reserve letting hypo off the chain until we are really ready for some carnage.