Bloomberg reported, that the Chinese officials approved plans to build 2,018 kilometers (1,254 miles) of roads. They also also backed plans for subway projects in 18 cities, nine sewage-treatment plants, five port and warehouse projects, and two waterway upgrades.
I believe these investment plans are highly appropriate and necessary:
- China is still a developing country and has to build up a gigantic infrastructure to support the further growth of her economy.
- The program will pump a lot of money into the Chinese economy and create there a lot of new jobs and income. This should work as a stimulus to revive economic growth which has been slowing down recently.
- These investments should strengthen the domestic economy and reduce China`s actual over-dependence from exports and foreign markets.
I reckon that the U.S. could learn from China - for similar reasons:
- The infrastructure in the U.S. is a mess. Very often streets, railways, airports, subway systems, steam pipes and bridges are old and rotten. The U.S. infrastructure reminds more of a developing country and doesn`t suit to the alleged leader of the world.
- Bold investments could rekindle the sluggish job market and create a lot of new incomes for many thousands of Americans.
I realize that this would be extremely costly and therefore unpopular. Rising taxes for financing the huge infrastructure program should be taboo, because taxes are barricades for the entrepreneurial initiative. I would recommend using credits instead of the actual debt problems. F….k the debts!