Aggressive Public infrastructure spending has the capability t | ECONOMY by VIVEK SINGH
Aggressive Public infrastructure spending has the capability to boost the economy in the following two ways:
In the short term, the infrastructure construction activity boosts the aggregate demand (as construction workers get wages and demand gets created for steel/cement etc.) and crowds-in private investment.
In the long term, the supply side bottlenecks get removed and the built-in infrastructure feeds into the productive capacity of the economy and also making the economy more efficient.
It is in the context of numerous (interview) students asking what else Govt. can do to revive the economy.
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