Attention Economy


Friday, September 19, 2014

High Cost of Maintaining Capital Stock

Even Germany is concerned about infrastructure investment shortfalls. As noted in Der Spiegel:

“According to DIW calculations, the investment shortfall between 1999 and 2012 amounted to about 3 percent of gross domestic product, the largest "investment gap" of any European country. If one looks only at the years from 2010 to 2012, the gap, at 3.7 percent, is even bigger. Just to maintain the status quo and achieve reasonable growth, the government and business world would have to spend €103 billion ($133 billion) more each year than they do today.”