Morning Must-Read: Jared Bernstein: Summers on Infrastructure Needs

Jared Bernstein: Summers on Infrastructure Needs: “If there’s something awry in the logic of Larry Summers’ argument here for more infrastructure investment…

…I certainly can’t see it. Based on low real interest rates, still high unemployment particularly among blue-collar production and construction workers, and most of all, the need for productivity-enhancing investments in our aging public goods, Larry is very much correct to ask “if not now, when?”…. We are, at some point, going to wise up and start engaging in the needed maintenance of our depreciating stock of public goods…. So given the confluence of factors Larry identifies, shouldn’t we start now? There are many “two-fers” in this space…. Larry doesn’t get much into the politics, but they’re of course central.  One could historically count on bipartisan support for this type of investment.  I mean, business interests might oppose the minimum wage and unions, but of course they want and need adequate ports, roads, airports, and so on, not to mention a skilled work force.  No firm can supply these public goods. But in a sign of how different these times are, not only is bipartisan support for infrastructure investment far from forthcoming, Rep. Paul Ryan’s new budget significantly cuts transportation funding…