tag:blogger.com,1999:blog-6263577133333272085.post1867069525958854295..comments2024-03-28T11:04:16.315+00:00Comments on Boffy's Blog: Big Capital Projects Not The Way To GrowthBoffyhttp://www.blogger.com/profile/08157650969929097569noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6263577133333272085.post-43252563100458568752013-03-10T18:03:09.803+00:002013-03-10T18:03:09.803+00:00Politicians tend to have an inflated sense of thei...Politicians tend to have an inflated sense of their own historial importance, hence the tendency to prefer "legacy" projects like new roads or railways or bridges. You'll get better results filling in potholes than building new roads. Not only is this quicker to deliver, but a higher percentage of spend goes to labour and is thus recycled into additional demand.<br /><br />Similarly, insulating/damp-proofing existing homes, and repairing derelict or unfit homes, should be prioritised over new builds. While the fibre upgrade for broadband is strategically worthwhile, you'd also do well to spend on local loop upgrades (i.e. the wire into the home), as many areas "upgraded" by BT to FTTC (fibre to the cabinet) actually have spotty coverage due to old pole wiring.<br /><br />There's an object lesson from history that politicians regularly misrepresent, namely the experience of the public works programmes in the USA in the 1930s. Despite a huge investment in both short (WPA) and long-term (PWA) projects, the immediate impact was palliative at best, shown by the recession that resulted after the premature scaling back of investment in 1937. The real benefit was that the WPA schemes tided workers over till the rearmament boom in the late 30s created new jobs, while the big PWA schemes (roads, schools, dams and bridges) provided the world-class infrastructure that underpinned the US boom in the 40s and 50s.David Timoneyhttps://www.blogger.com/profile/03568348438980023320noreply@blogger.com