Thursday 6 May 2010

On unproductive investment

One of the biggest problems with unproductive publicinvestment (the one that doesn't pays for itself according to market rates evolution) is that, for a short while, generates growth and employment. It is an easy fix. It seems good.

But then, the real price comes up. The value it hads to the economy is shorter than if the investment would have been made in other longer-term projects. But, with a 4 years political cycle, that is not an issue for the decisors today...

The word of a master

Stieglitz on the Euro crisis. A reflection in The Guardian.

http://www.guardian.co.uk/commentisfree/2010/may/05/reform-euro-or-bin-it-greece-germany