This article should stand as a stark warning to Australia, Europe and the USA, about to embark on probably the worlds greatest ever experiment in fiscal stimulus.
http://www.bloomberg.com/apps/news?pid=20601101&sid=aYomskNBwinE&refer=japan
I expect that more of the same "business as usual" economic stimulus such as this will do nothing but create facilities that are an ongoing liability to the nation. Money for projects that have no popular support but are funded simply because they inflate the economy will entrench a pork-barrel industry addicted to the swill of easy government money for useless projects that bankrupt local governments with ongoing costs liabilities. Japan is even today faced with the ongoing issue of dealing with these problems, and should stand as a stark warning to the rest of the world -
choose your projects very carefully, because they will define your country and its future for decades to come.
So what will it be? Highways, tunnels, airports, more cars and more sprawl? Or investment in trains, subways, and safe walkable communities?
Thursday, January 01, 2009
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3 comments:
Hi mate, Dave's mate Jonno here. I loved this story, I've flashed it to the editors of Australian Aviation to see if they will run it in conjunction with a piece about Australian Gov't Green Paper on Aviation etc.
hope you're well
Jonathon
Thanks Jonno. I don't expect Australian Aviation magazine will particularly love the idea of more trains and less airports... but then that is the way things work isn't it. Many economists argue that a free economy means endless choice. But often it just means you have the choice to buy into the status quo or not buy anything at all. Once a society starts going down a particular road it can be very difficult to step off that path because to do so - even for good reason, would cause the economy to deflate, even if only temporarily. I am sounding like a Catholic priest, but it really is time we bit the bullet.
More good post recently.
An old one from elsewhere, but I thought you might enjoy this :
http://democracystreet.blogspot.com/2007/10/dignified-divorce.html
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