Economics Quote by Michael Spence
“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
Source Paper: Economic Growth and Capacity Utilization, 2015
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.