By Kris Sayce – Port Phillip Insider (Australia) –
‘Australian Prime Minister Malcolm Turnbull agreed with the International Monetary Fund’s call for more spending on infrastructure, while recommitting his government to eradicate a budget deficit.’
The words ‘cake’ and ‘eat it’ spring to mind.
The folly of infrastructure spending. It is, according to the mainstream dimwits, the answer to all the world’s ills.
If only governments and the private sector would spend more on bridges, roads, dams, airports and very fast trains…
The reality is different.
Contrary to popular belief, infrastructure spending doesn’t drive or stimulate economic growth. Infrastructure spending is a cost to the economy.
To prove our point, we shall analogise an example.
Imagine you are unemployed.
How can you achieve personal economic growth? The simple answer is to look for a job and be productive to an employer. Or you could start your own business.
That makes sense.
But if we take a lead from the mainstream, they would say that the best way for you to achieve economic growth would be to buy a car or rent an office.