Update: Our 2009 Prediction Re: Stimulus Funding Comes True
February 15, 2011
Globe and Mail November 24th The Great Infrastructure Boom That Wasn’t Tim Kiladze
Report on Business reporter Tim Kiladze noted that analysts had suggested that investors were far too optimistic about the extent to which public stimulus funding would boost the fortunes and bottom lines of the construction industry. Kiladze quotes a market analyst as follows: “Very few meaningful stimulus-related infrastructure projects were launched in 2009. In fact, somewhat ironically, some infrastructure spending was actually delayed … as [provincial, state and local] governments awaited funding from the federal stimulus coffers,” noted CIBC World Markets analyst Paul Lechem.
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For a systems explanation of why this ‘irony’ occured – predicting such a result before the fact – see the following article from August 2009. Why Cash For Clunkers Works Better Than Company Bail-Outs or Infrastructure Spending: Reach, Roles and Relationships Count in Our Results Theories