Wednesday, September 25, 2013
HIgh Speed Rail System In China And Its Impact On Productivity And Economic Development
China invested billions in developing a high speed rail system. This was criticized by the usual suspects who don't support public investment. They argued that the rail system would not attract enough customers to pay for its development. They were wrong. The rail system has been very popular. The train stations are crowded with passengers, and the availability of high speed rail transportation has contributed to urbanization in previously remote areas. Productivity has been increased and markets in China have been broadened. The US made a similar investment in developing its interstate highway system in the 1950's. It had a profound effect on regional development in the US. Infrastructure investment in the US has declined steadily in the US over the last 50 years.