Infrastructure Spending Is Zero. That’s 0 with a zero

Lawrence Summers, Professor and President Emeritus at Harvard University, has made an assertion that has startled many economists and has gotten the the policy thinkers in a buzz. His models suggest that the total government spending (of all levels) adjusted for inflation, on national infrastructure, is zero.

There are a set of further rationale for increased infrastructure investment. Can it possibly make sense that at this moment, as I speak to you, the share of public investment in GDP, adjusting for depreciation, so that’s net share, is zero. Zero.

Full link to his article here: http://larrysummers.com/2015/02/25/reflections-on-secular-stagnation/

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