"If You Build It, They [Won't] Come"

Conventional "wisdom" holds that building or construction is the centerpiece of economic recovery or stimulus. So, whenever the economy turns sour, governments embark on large-scale construction of all sorts of infrastructure projects, which, in the short run, do have an impact in job creation and other positive effects. But, ultimately, what is built must have a legitimate purpose and serve a real need; otherwise, it will just lie there unused and abandoned.

This is what seems to have happened in Spain in recent years, a construction boom that produced airports, buildings and roads that, in some cases, there is no use for. Once again, the "quick-fix" was no fix at all.

In Puerto Rico, we have gone through a similar experience. Coincidentally, one of the major companies that are poised to participate in the private and public partnerships responsible for this building program comes from Spain and knows fully well what the consequences are. Still, there's money to be made, even if very little will come of what will be built.

Comments

Post a Comment

Popular posts from this blog

Belgian Buggery

The Catholic Church's sex abuse scandal won't go away; instead, it keeps growing every day.  Take the story out of Belgium, where a report has been issued that details what went on, including more than a dozen suicides linked to the abuse perpetrated by priests and  a cover up that continues to this day, when a Belgian bishop suggested that a complaint be withheld until 2011, when the bishop who covered up for the offending priest will retire.  With each passing day, it becomes more and more difficult to hold that this behavior was just the work of a few rogue priests.  There are just too many cases all around the world, for anyone to believe such a thing. This is clearly a major problem which the church tried to hide from the authorities and recklessly let it continue, without any regard for children elsewhere, by transferring priests.  There is no excuse for this unpardonable sin.
Read more

Hear, Hear!

Not that it means a whole lot, but, still, the gesture has some significance. After 33 years on the throne, the Dutch queen, at 76, will abdicate in favor of her son. Not subject to election by the vote of her people, she has done the right thing by resigning, so to speak, and letting her son carry on with the royal duties. At 86, and 60 years on the throne, Queen Elizabeth would do well to follow this example. Hanging on to the throne at her age and after so many years seems excessive and ungenerous. The same goes for King Juan Carlos, who has just turned 75, and has been on the throne for 37 years. His son will be 45 two days from now, so is already older than his father was when he became King. In Juan Carlos' case, he has, of late, given signs of poor judgment, that could very well be a result of his age. Queen Elizabeth and King Juan Carlos should follow Queen Beatrix 's example.
Read more

Chinese Capitalism

The fact that Asia now boasts of having the biggest number of millionaires in the world is a sign of the times. The predictions of a few years ago have come true: China is the world's next superpower, and the increasing wealth of its economic elite shows it. The sleeping dragon has awakened.
Read more