- The Washington Times - Monday, July 30, 2012

In a recent speech, President Obama pointed to government-generated infrastructure as the cause of economic activity and growth. The president has it backward.

Infrastructure, or to use the more descriptive term, social overhead capital, is a necessary but not a sufficient condition for growth. The sufficient condition is entrepreneurial activity. A road by itself, like the bridge to nowhere, has no utility. For any growth to occur, vehicular traffic, a product of entrepreneurial activity, must be present. Simply put, roads do not create growth, growth creates roads.


Professor emeritus, Economics

Queens College, City University of New York

Atlantic Beach, N.Y.