Source: Adam Smith Institute
by Tim Worstall
“Some infrastructure spending undoubtedly increases productivity, creates economic growth. Say, a functioning commercial law system. Or something more than a rutted track as the pathway from Bristol to London. Just to offer a wide expanse of things that could be beneficial. But other forms, types and pieces of infrastructure perhaps don’t. Better housing certainly makes lives better but it’s not an increase in productivity nor a cause of economic growth other than the process of building the better housing itself. It’s even possible for infrastructure to be productivity reducing. Say, the Humber Bridge, which cost a great deal in real resources and never has reached anything like the traffic levels to justify it. … the answer to ‘infrastructure?’ is like so much in economics, the answer is ‘It depends.'” (03/04/26)
https://www.adamsmith.org/blog/its-which-infrastructure-not-how-much