A rational federal budget would treat borrowing for the sake of consumption differently than borrowing for the sake of investment and growth. It would only allow additional borrowing for public investments whenever the expected return on those investments is higher than the cost of borrowing.
Studies show a total return on infrastructure investment to average $1.92 for every public dollar invested.
Studies also show the return on early childhood education to be between 10 and 16 percent, with 80 percent of the benefits going to the general public.
