Lots of stories in the news about how the government and local authorities are going to spend lots of cash on capital projects in an effort to stimulate the economy. Things like the much needed Crossrail and the Thames Tideway Tunnel are getting part of a £400 million cake from Boris for example.
Now why is it that it's only when we are in recession that cash gets pumped into things like improving our public transport infrastructure, when during the the time that the economy was actually growing it was left to decay? Could there be any votes in it per chance.
Call me cynical but I wonder if the overspend from the 2012 Olympics will find itself swallowed up in this kind of project. Well if it does maybe its not a bad price to pay for a 21st century public transport system.
Mind you I couln't help notice another news story today stating that spending the way out of the present problems with a public works programme won't work.
This is from a group of senior economists that include Trevor Williams of Lloyds TSB! I guess he must be of the opinion that government money is better spent on bailing out the banks who got their fingers burnt handing out dodgy loans. Wonder who I could be thinking of?
