Infrastructure Investment – Opportunity Lost

Anthony LoPinto

As one strolls around New York City, one cannot help but notice major repairs underway, with deteriorated steel beams supporting the subway system or underground repairs on every corner with jackhammers spoiling the Sunday morning stroll. This is one form of investment in infrastructure, the deferred maintenance of the underlying infrastructure of many cities that is crumbling.

The other form of infrastructure investment that is being tossed around by the candidates involves a greater commitment to infrastructure for the future to help drive the economy as a form of stimulus with the byproduct of better roads, airports, transportation systems and the like. The Wall Street Journal yesterday had an article about Canada’s big bet on infrastructure investment. Prime Minister Justin Trudeau’s Liberal Government plans to spend heavily on tax benefits and infrastructure over the next decade on short and long term projects. It is an interesting master plan that is aimed at stimulating the economy. The counterpoint is that it will drive up the deficit.