It's common knowledge in the financial world that returns are expected to be very low in the near future. With that and the recession both financiers and economists (real economists, not random op-ed writers) are aware that the market and macro situation for government projects is ideal.
But it so happens that government projects today are very often financial disasters, particularly when backed by bonds or tax increases. There's no law of the market that says this should happen either, but it seems to be a feature of ossified political systems.
In times of rapid economic change, the risk of doing nothing is often far worse than a grand project that is merely less than fully successful. Chicago feared it would become a big flat toilet, for many good reasons.
When things work pretty well, it can be more difficult to allocated resources for bigger projects, I suppose.
Interesting to note, many economists in no small measure blame the recent financial crisis on the global cpital glut chasing returns. If you create an innovative instruments for financial capital to support physical capital (in this case US housing stock) you too can create a bubble.
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There's even more capital these days, it's just locked in securities and traded on exchanges instead of directly invested in enterprises.
It's common knowledge in the financial world that returns are expected to be very low in the near future. With that and the recession both financiers and economists (real economists, not random op-ed writers) are aware that the market and macro situation for government projects is ideal.
But it so happens that government projects today are very often financial disasters, particularly when backed by bonds or tax increases. There's no law of the market that says this should happen either, but it seems to be a feature of ossified political systems.
In times of rapid economic change, the risk of doing nothing is often far worse than a grand project that is merely less than fully successful. Chicago feared it would become a big flat toilet, for many good reasons.
When things work pretty well, it can be more difficult to allocated resources for bigger projects, I suppose.
Singapore does that kind of timing pretty well.
Interesting to note, many economists in no small measure blame the recent financial crisis on the global cpital glut chasing returns. If you create an innovative instruments for financial capital to support physical capital (in this case US housing stock) you too can create a bubble.