Quote:
Originally Posted by Mobes
I'd love you to give an example of each and tell us how it's fundamentally different. I bet you can't  |
It’s a simplistic two liner but the underlying fundamentals are quite true. Borrowing long term to meet day to day, month to month expenditure is more problematic than borrowing to “invest” in for example infrastructure projects that will yield long term economic benefits.
£30bn on the right infrastructure project (e.g. HS2 - note I’m not saying that is the right one it’s only an example) could employ thousands of people directly, tens of thousands more in the areas around construction. Many will be highly paid, skilled and relatively stable jobs. If the project reduces the costs to business, takes pressure off housing in the south east then it could yield benefits realised in the long term far in excess of £30bn. It has to be the
right project though and not a big damp squib.
Note it's going to be easy to criticise the above specific to HS2 which is why I'm specifically not defending it.