In economies with excess productive capacity, targeted…
“In economies with excess productive capacity, targeted investment can yield a double benefit, generating short-run demand and boosting growth and productivity thereafter.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Investing in underused resources creates immediate demand and long‑term productivity gains.
In simple terms: Targeted investment boosts demand and future growth.
Invest in idle capacity now.
Themes
Mood
Type
When to use this quote
- government stimulus
- business expansion
- infrastructure projects
- technology upgrades
Key Concepts
Questions to Reflect On
- How can we identify truly underused capacity?
- What safeguards ensure investments stay targeted?
Benefits assume efficient allocation; misallocation can waste resources.