Tuesday, June 23, 2009
When a large accident occurs it sometimes awakens us to the aging and crumbling state of infrastructure and real capital. When a bridge in the US state of Minnesota collapsed, for example, the public suddenly found out that many bridges and roads throughout the US are in decrepit condition. So it is with the latest train accident, after which we find that much rolling stock is similarly aged and in need of replacement. Each new such revelation further underscores the quickly deteriorating condition of the capital stock that was made possible by cheap fossil fuels, and which underpinned decades of economic expansion.