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10/3/16 - Gene Ludwig on a Federal Budget Fix to Promote Economic Growth

Promontory Chief Executive Officer Gene Ludwig published a column on Time.com detailing how a fix to the federal budget process would encourage infrastructure spending and economic growth.

“Congress is less likely to fund a bridge today because the costs are immediately booked, even though returns will only begin to be realized after the project is completed.”

“A capital budget that differentiates between ordinary, day-to-day expenses and long-term expenditures targeted at improving growth would correct for this bias. This is common practice in the private sector. In fact, most state governments use capital budgets. This approach would allow for capital costs to be spread over the period when the benefits accrue.”

“Infrastructure spending, thoughtfully directed, can be the engine of technological superiority for the future.”

Click here to read the full article.