In a recent article from Transportation Builder called “The Road to Increasing Returns,” we examine the benefit of infrastructure funding. In order to do so, we must take a closer look at economics, historic examples, and political infrastructure.
Some interesting points gathered from the article include:
- The scope of economics: Increasing returns are what you get when your investment or innovation yields up a positive return. While these investments can be private or public, at times they can yield up spectacular returns—over decades, centuries, and even millennia.
- A noteworthy historic example: The famous Roman roadway, the Appian Way, which connected Rome to southern Italy, provided incalculable economic benefits to the whole region. This economic integration of Roman Italy helped greatly by introducing robust infrastructure to the region and making the ancient nation rich.
- Variables in economic growth include innovation, followed by mass production, mass distribution, and mass consumption.
- Political infrastructure: Political order and an enterprise-friendly environment are the factors that allow business to flourish. Increasing economic returns go hand-in-glove with the right sort of political system.
- The importance of physical infrastructure: None of these infrastructural elements—political and economic based—occur by themselves; a wise system protects and improves both.
- In our present day, we’ve discovered that “financial innovation” falls into the category of decreasing returns, so all political parties need to be looking ahead to seek the lead on economic investments that yield up increasing returns. This means more technology, more high-tech education, and more up-to-date infrastructure.
In summary, it’s important to realize that even with our new advances in the virtual world; we still need a firm foundation in the physical world. As long as people and their goods are tangible, they will need tangible infrastructure.