I have attached a link to an article in the New York Times written by N. Gregory Mankiw whom is a professor at Harvard Law. In the article he breaks down the Keynesian theory of economics and in doing so shows how the new government is going to try and get the economy jump started by spending money on infrastructure.
What Would Keynes Have Done?
My favorite part is where he brings up the argument that Keynesian theory ignores the long run impact on an economy to which John Maynard Keynes famously quipped, “In the long run we are all dead."
1 comments:
All the signs point towards a massive government investment in infrastructure. Based on Obama's statements, much of this investment could come in the form of green infrastructure: renewable power plants, transmission lines to connect these plants, efficient automobiles, weatherizing homes, mass transit, etc. Even those investments like bridges & highways that aren't Green initiatives will probably have stipulations calling for green materials and construction techniques. At least I hope so.
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