Printer Friendly

PUBLIC INFRASTRUCTURE INVESTMENTS HELP STATE'S ECONOMY, TREASURER SAYS

 PUBLIC INFRASTRUCTURE INVESTMENTS HELP
 STATE'S ECONOMY, TREASURER SAYS
 OAKLAND, Calif., Dec. 9 /PRNewswire/ -- State Treasurer Kathleen Brown today described to a hearing of the Assembly Revenue and Taxation Committee how greater public investment can fuel more private sector output -- and help alleviate California's economic slump.
 "For every dollar we invest in schools, roads and clean water systems, we are likely to see a significant return from the private sector," said Brown. "These investments will aid California as it climbs out of the current recession."
 Brown referred to the "new math" principles developed by economist David Aschauer to describe the impact of public infrastructure investments on the private sector:
 -- Every $1 of additional capital spending increases private
 investment by 45 cents.
 -- Public investments in streets, transportation systems and water
 and sewer projects may result in private sector output that is
 four to seven times the cost of public investment.
 -- About 60 percent of the U.S. productivity slump can be
 attributed to the neglect of our core infrastructure.
 The Treasurer made her remarks today at a hearing on California's business climate.
 Treasurer Brown added that bonds are a key tool for investing in California's capital needs. Nearly 60 percent of bond funds results in job creation, she said.
 "Investing in our infrastructure will not only help improve the quality of life we have all come to enjoy," said Brown, "but it will also demonstrate to businesses that California wants them to stay."
 -0- 12/9/91
 /CONTACT: Jennifer Openshaw of the California State Treasurer's Office, 916-653-2995/ CO: California State Treasurer's Office ST: California IN: FIN SU:


RM -- SF013 -- 0728 12/09/91 17:13 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 9, 1991
Words:274
Previous Article:MICHAEL L. WALLING ELECTED SANTA MONICA BANK DIRECTOR
Next Article:RECOGNITION ANNOUNCES IMPROVED 1991 FINANCIAL RESULTS


Related Articles
California Breakthrough: Smart Growth Meets Big Money.
ANGELIDES PROPOSES PENSIONS AID STATE USE MONEY TO PAY FOR BRIDGES, FREEWAYS, STATE TREASURER SAYS.
KPMG Strengthens Its Infrastructure Advisory Capabilities With Key Senior Hires.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters