Reconstruction for the USA

Ryan Avent notes that one year of defense spending could build a nationwide network of high speed rail. More realistically, we could build it in 10 years by diverting 10% of defense spending.

Matthew Yglesias: "Something worth noting is that for a hegemonic power suffering from slow-but-steady (but very slow) relative decline, wasting money on national security expenditures actually erodes our hegemony. Meaningful U.S.-Chinese security competition is a generation or two away. By that time, money that was spent in 2009 on fighter planes or nuclear submarines or transportation infrastructure in Afghanistan isn’t going to be doing us any good. By contrast, spending money on preschool in 2009 does improve the U.S.-Chinese balance of power in 2049—investment in early childhood education pays enormous dividends, but it takes a long time to turn tiny babies into productive adults. And transportation is just the same. The construction of heavy rail mass transit in Boston, New York, Chicago, and Washington was extremely expensive but has paid consistent dividends for decades and if properly maintained will continue to do so forever.

I can’t vouch for the authenticity of the quote, but someone told me he heard a Chinese official tell him “over the past decade you’ve spent $1 trillion on Iraq and Afghanistan, we’ve spent $1 trillion building the future of China.” I don’t really think we should view that contrast in a paranoid light, but if you do want to take a paranoid view of the American national security situation it makes a lot more sense to worry about that than to worry that someone in a cave might build a bomb."