Government spending pays for itself

Oh yes it does!

Splurge on infrastructure and it\’ll all come rolling back in again won\’t it? No government went bust building houses and railways now, did it?

Ahem.

Traders feared that the request for a six-month standstill was a sign that the Dubai Government was struggling with its other debts – and that the full impact of the financial crisis globally may not yet be over.

The company has $60bn (£35.9bn) of liabilities from its various companies including Nakheel, the property firm behind the Palm Jumeirah, the world\’s biggest artificial island, and the Nakheel Tower, the world\’s tallest building at 1km high.

Bite me, Keynesians.

4 comments on “Government spending pays for itself

  1. It’s also a tad embarrassing for those on the right – I remember thebusinesspaper in particular – who saw Dubai as an economic model the UK should emulate.

  2. “the Nakheel Tower, the world’s tallest building at 1km high.”

    Doesn’t a building actually have to exist before it can be considered the world’s tallest?

  3. I don’t remember Keynes or Keynesians suggesting that governments should build massive speculative commercial developments – railways, roads, civic buildings and council housing are more traditional.

  4. Strange that Tim didn’t even make mention of the “Skyscraper Index” (which seems to have a rather tight, organic relationship with Austrian Business Cycle Theory and, therefore, to reliably predict recession, depression).

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