Paul Krugman, Laureate of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 at a press conference at the Swedish Academy of Science in Stockholm (Photo credit: Wikipedia)
This article from Paul Krugman, the liberal, Nobel winning economist, in his NYT blog is well worth a read. Check it out!
The article focuses on the politics and social benefit of major public works projects. This particular article focuses upon a proposed additional tunnel to New York but the argument is transferable to any major public works project.
It reminds me that neoliberals hold too much power in many Western Governments at the moment, and it is perhaps time to look again at potential Keynesian solutions to additional investment to get the Western economies growing. I wonder when UK Chancellor George Osborne, will see the wisdom of greater Public Sector investment?
Sadly, the Cabinet Office has convinced itself and other policy-makers that the Public Sector is not capable of managing major investment programmes effectively – and according to recent news, it prefers to concentrate on customized iPad apps for the Prime Minister.
