Infrastructure and Growth
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Two recent stories published by the Economist are useful in understanding the significance of investment in critical infrastructure and sustaining long run economics growth
In this article, the Economist looks at evidence of a underlying lack of infrastructural investment in the US economy
“For the past few years it has been hard to ignore America’s crumbling infrastructure, from the devastating breach of New Orleans’s levees after Hurricane Katrina to the collapse of a big bridge in Minneapolis last summer.”
In contrast there is a surge in physical capital spending in emerging market economies - discussed here
“The biggest investment boom in history is under way. Over half of the world’s infrastructure investment is now taking place in emerging economies.”
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