The Livable Blog

It looks like Keynesian Economics has suddenly popped up from its grave, dug up by Gordon Campbell of all people. To give an oversimplified version, Keynes claimed that governments should tax more than they spend in good times (run surpluses), and run deficits so they can spend money to stimulate the economy in a depression (or to prevent an economic downturn from becoming a depression). Gordon Campbell's plan to deal with the meltdown includes: "SEVENTH : We are going to accelerate public investments in capital infrastructure. . . A key determinant for funding will be the speed in which we can get people working, without long lead times." Most observers seem to think this means building a bunch of roads and freeways.

To illustrate Keynes' point followers (and detractors) sometimes emphasize that even completely useless expenditures stimulate the economy; and for example, digging useless holes or building roads to nowhere would have a beneficial effect. The benefit is to stop the economy from collapsing, basically evening out the boom-bust economic cycle of capitalism.

But Keynes never actually advocated spending money on useless projects, he only used examples like roads to nowhere to emphasize his point. Unfortunately Canada has a history of building roads to nowhere during economic downturns, even before Keynes became influential. During the Great Depression, relief camp workers worked long hours in appalling conditions for little pay. But one of their frequent complaints was also that they were doing useless work, which made a bad situation intolerable, sparking On To Ottawa Trek and other actions.

Relief Camp Workers in Canada Often Built Useless Roads

In contrast, more of the work done to stimulate the economy in the USA as part of the New Deal was productive work that left a lasting legacy, such as establishing the National Parks system.

Now the Campbell administration is apparently proposing to repeat the mistakes of the 1930s, by building roads that are worse that useless. Regions with good public transit are more efficient and livable than the freeway cities without transportation choice.

Building freeways as we face the global warming crisis and approach peak oil would be worse than stupid.

Projects such as the King George Busway and reopening the Interurban as a modern light rail line are what is needed to leave a positive legacy. A green new deal for Metro Vancouver could create a transit metropolis, where living well in Burnaby or Surrey does not require owning a car.

The Green Party gets this, the NDP seems to get it too:

we need to accelerate infrastructure spending on transit and green retrofits. Long-term, green infrastructure is the life blood of the new economy.

So Gordon Campbell, is your plan to build roads to nowhere and ditch your own global warming commitment?

(PS Economic growth without concern for ecological limits,as promoted by Keynes in the 1930s, is no longer a viable option. But decent jobs doing useful work is one of the goals of a steady state (AKA sustainable) economy.)