Improving infrastructure requires private investment

Ryan Bourne for the Cato Institute: Goldman Sachs CEO Lloyd Blankfein tweeted recently: “Arrived in China, as always impressed by condition of airport, roads, cell service, etc. US needs to invest in infrastructure to keep up.” This raises an interesting question: How do we know how much infrastructure investment is needed in the U.S.? From an economic perspective, the answer is certainly not “invest to the point where our airports feel as high quality as China’s.” But absent real markets, the amount “needed” is difficult to quantify — an example of the “knowledge problem” associated with central planning.

Source: Washington Examiner

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