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Archive for the tag “public spending”

Keynes, Trains and Automobiles

FOR 35 years the steel bolts holding up the ceiling of Sasago Tunnel, on a busy toll road west of Tokyo, were never checked. On December 2nd more than 600 of them had worked themselves so loose that a 130-metre stretch of the roof collapsed, crushing nine motorists.

The disaster played into the hands of Shinzo Abe, who two days later launched his successful campaign to become prime minister partly on a promise of renovating Japan’s rusting infrastructure. As promised, on January 10th Mr Abe approved a massive public-spending bonanza, expected to exceed ¥13 trillion ($150 billion)—more than was spent in emergency measures after the 2011 earthquake, and about 2.6% of GDP.

Read Here – The Economist

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