Recession can still be averted

Recession can be averted by an infrastructure and public works programme.

There are many large projects that have been put on the back burner because of cost and these should be brought forward using borrowed money. Localised unemployment can be held in check by catching up with the backlog of repairs – highways, public buildings, etc. This will soak up spare capacity in the building industry and keep people occupied who  would otherwise be paid to do nothing. Classic Keynesianism is what is needed right now.

What is not classic Keynsianism is the recognition that these works will enhance land values which can then be collected through an ad valorem tax on the rental value of land, thus providing the government with the funds to pay back the money borrowed to carry out the work.