Infrastructure and economics
From Wikipedia, the free encyclopedia
Infrastructure (also known as "capital goods", or "fixed capital") is a platform for governance, commerce, and economic growth and is "a lifeline for modern societies".[1] It is the hallmark of economic development.[2]
It has been characterized as the mechanism that delivers the "..fundamental needs of society: food, water, energy, shelter, governance ... without infrastructure, societies disintegrate and people die."[3] Adam Smith argued that fixed asset spending was the "third rationale for the state, behind the provision of defense and justice."[4] Societies enjoy the use of "...highway, waterway, air, and rail systems that have allowed the unparalleled mobility of people and goods. Water-borne diseases are virtually nonexistent because of water and wastewater treatment, distribution, and collection systems. In addition, telecommunications and power systems have enabled our economic growth."[5]
This development happened over a period of several centuries. It represents a number of successes and failures in the past that were termed public works and even before that internal improvements. In the 21st century, this type of development is termed infrastructure. [6] Infrastructure can be described as tangible capital assets (income-earning assets), whether owned by private companies or the government.[7]