Spending Capital Wisely Would Determine Future Prosperity

One gets amazed by the U.S.’s staggering capital spending.

The key question is: how well has this capital been spent? Has capital gone into future productivity (e.g., new technologies that would create future jobs)? Or has it been wasted on a bad decision?

For instance, after the property bubble burst, Japan continued to spend its capital to prop up real estate prices. Now it gets stuck in bad investments.

It’s ironic that the U.S. seems to follow the same road that Japan did 20 years ago.

The problem facing the U.S. and Japan is much deeper and far more serious than it appeared to be. Many countries are not safe from this issue.

Shoring up the fire industry wouldn’t solve the problem.

Those countries that would spend its capital wisely would prosper.