BBC BLOGS - Justin Webb's America
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The case against Obama's New Deal

Justin Webb | 21:08 UK time, Monday, 8 December 2008

Sorry to go on and on about infrastructure, but there is nothing more important - this piece cogently sets out the opposing view that the Obama New Deal will not work.

It seems to me that it misses the point though, which is that the spending he envisages will not just be spending for the sake of it, but will be investment in future productivity gains, and thus the abiilty of the US to pay itself (or the Chinese) back.

Paul Volker (who choked off the last big inflation in the early 80s) will be on hand to advise on how to damp things down when the time comes, but crucially when the time comes the bridges will not be falling down and broadband will be available everywhere and you will be able to get from Washington's main airport into town on a train, as you can at virtually every other industrial world capital city...

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