Our country like all countries has been affected by the direction that the finance institution has taken in regards to investment. Where and how money is invested affects the stability of not only an economy but a country’s infrastructure. The problem is, and always has been, that infrastructure investment is normally much longer term before recognizable return occurs then what has become normal and customary in most of the boardrooms in the country. This economic reality exacerbated by a diminished level of patriotism from much of big business including the financial sector has made the long term outlook for the economy much more tenuous.
Our biggest infrastructure investment was forced upon us by the Great Depression. The seriousness of Global Warming may cause a revitalization of investment. Other than crisis, modern government working in hand with big business does not respond timely or efficiently to infrastructure deterioration.
The great irony is that infrastructure investment is great for the economy as a whole and is also a sound investment for business. The bang for your buck through infrastructure investment is much greater than in many other forms of investment for an economy. This is the same result but at varying rates for any sort of investment that is heavily labor intensive. For the investor, outside of investment in trial technology, any other infrastructure investment has proven to be quite sound. The question is whether the CEO’s in this land can show the resolve to work in hand with government in creating a new era of infrastructure repair and development and wait for their returns.
“There are huge unmet global needs that could spur growth. Infrastructure alone could absorb trillions of dollars in investment, not only true in the developing world, but also in the US, which has underinvested in its core infrastructure for decades. Furthermore, the entire world needs to retrofit itself to face the reality of global warming.”
“While our banks are back to a reasonable state of health, they have demonstrated that they are not fit to fulfill their purpose. They excel in exploitation and market manipulation; but they have failed in their essential function of intermediation. Between long-term savers (for example, sovereign wealth funds and those saving for retirement) and long-term investment in infrastructure stands our short-sighted and dysfunctional financial sector.” https://www.project-syndicate.org/commentary/great-malaise-global-economic-stagnation-by-joseph-e–stiglitz-2016-01#8mPGzPCASxu8Zoim.99
“The only cure for the world’s malaise is an increase in aggregate demand. Far-reaching redistribution of income would help, as would deep reform of our financial system – not just to prevent it from imposing harm on the rest of us, but also to get banks and other financial institutions to do what they are supposed to do: match long-term savings to long-term investment needs.”
“But some of the world’s most important problems will require government investment. Such outlays are needed in infrastructure, education, technology, the environment, and facilitating the structural transformations that are needed in every corner of the earth.”
“The obstacles the global economy faces are not rooted in economics, but in politics and ideology. The private sector created the inequality and environmental degradation with which we must now reckon. Markets won’t be able to solve these and other critical problems that they have created, or restore prosperity, on their own. Active government policies are needed.” https://www.project-syndicate.org/commentary/great-malaise-global-economic-stagnation-by-joseph-e–stiglitz-2016-01