ARC Tunnel – Justified Cut?
So, the blogs have been covering New Jersey Governor’s Christie goal to shut down the ARC tunnel project. As many of you know — and as has been covered before on this blog — the ARC tunnel would have provided another much needed connection between New Jersey and New York .
I think we can all understand the stressful situation that states are in regarding fiscal affairs. But is this a cut that is worth making? Andrew Samwick doesn’t think so:
There are plenty of ways to waste money through public investment. This just doesn’t happen to be one of those instances. It was to avoid the temptation to waste money in the name of a perceived need to stimulate the economy that I wrote this and followed it up with this. In the latter, I suggested that we establish a prioritized list of capital projects, so that we were ready to implement them as slack appeared in the economy. Careful planning is the defense against waste, regardless of what you buy with the money.
I strongly suggest on reading the full article, as it links to a great Economist piece and other blogs.
So, is this a justified cut?