Keynesian economic theory appears to be alive and well – or least recently revitalized if not completely resuscitated, thank goodness! Too bad it couldn’t be rationally adhered to in better times, but c’est la guerre! (That’s a figure of speech for you literalists.)
Economic Stimulus: Public Funds
Now it’s up to politicians to make prudent decisions about how much and when to stimulate the economy with public spending. If they screw up, they can blame the theorists; if they get it right, they’ll take credit themselves. (Fair enough – since economic theorists usually blame politicians when things go wrong!)
In either case, we’re hearing more and more about spending public money on infrastructure. Heavy construction seems to be the favorite target of historical government interventions in failing economies. So much so that “infrastructure” seems to have taken on a standard definition of “roads, bridges, sewers, etc.”
Infrastructure of Global Warming
I’m hereby proposing a new definition of infrastructure. This one is contextual. It relates to the infrastructure of global warming, of Greenhouse Gas emissions.
Did you know that more than 40 per cent of America’s carbon dioxide emissions come from the built environment — homes, offices, industrial facilities?
How about including this sector in public spending on infrastructure?
In my coming posts I’ll talk about why this makes good economic and good environmental sense.