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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.” quote by Michael Spence
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“In economies with excess productive capacity, targeted investment can yield a double benefit, generating short-run demand and boosting growth and productivity thereafter.”

Michael Spence

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.

Key Takeaway

Invest in idle capacity now.

Themes

economics investment growth

Mood

analytical optimistic

Type

policy strategic

When to use this quote

  • government stimulus
  • business expansion
  • infrastructure projects
  • technology upgrades

Key Concepts

capacity utilization multiplier effect

Questions to Reflect On

  • How can we identify truly underused capacity?
  • What safeguards ensure investments stay targeted?
A Different Perspective

Benefits assume efficient allocation; misallocation can waste resources.

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