Thursday, August 29, 2013

Trains to Nowhere: A Government Spending Problem

Both parties now agree that we don't have extra budget money lying around, but both say government does need to spend more on "infrastructure."
Even conservatives want more spent on roads and mass transit.
The reason, advocates claim, is that infrastructure, unlike most government spending, has a "multiplier effect" -- it creates new wealth by doing things like speeding up travel.
Well, it might.
Advocates also point out something that seems obvious to them: Infrastructure is a job that must be done by government. Who else would launch big projects like the New York City subway system? Subways are what Big Government supporters call a "public good."

http://reason.com/archives/2013/08/28/trains-to-nowhere-a-government-spending 

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