The Downside of Infrastructure Investment

http://www.futureofcapitalism.com/2013/02/the-downside-of-infrastructure-investment

Former Bush administration official Keith Hennessey has a characteristically smart and well-done post about the downside of government infrastructure investment, and about the flaws in some of the arguments that the Obama administration makes in favor of it:

If you advocate raising capital taxes (on capital gains and dividends, for instance, as Senate Democrats appear poised to do) at the same time you argue for increased government capital spending, you're shifting capital investment from the private sector to the public sector. That will slow long-run economic growth rather than increase it.

by Editor  |  Feb 1, 2013 at 11:54 am Related Topics:  Government Spending receive the latest by email: subscribe to the free futureofcapitalism.com mailing list