January 27, 2013
I was watching CNN’s Your Money this Sunday (channel flipping between Tiger Woods). Ali Velshi’s panel, as a rare event, all agreed on what the US government should do: investing on infrastructure and education right now.
Other than extracting more natural resources, there are only few ways to improve a country’s productivity: re-distribute resources or reduce waste; improve infrastructure for more efficiency, educate workers and citizens to be more skilled or knowledgeable; and, lastly, invent new technologies or find new uses of existing ones. Of these, education correlates strongly with technologies; infrastructure and education costs money.
But this government has tons of money. Really. Trillions! There has been three “quantitative easing” before the latest round, which Bernanke essentially said will be of infinitive amount. Ironically, every cents the government spends must be part of the budget and those QEs are not. Our government printed trillions of dollars and dump them on the private sectors that do not invest on infrastructure and education.
Other governments are not this stupid.