We are constantly told that investment in infrastructure is impossible without finding a way to access private funding. It is just too expensive. Tunnels and train lines cost billions of dollars. Funding projects like these through public spending would be irresponsible - what if there's not enough money in the pot to complete them? Governments might have to resort to desperate measures such as going into debt or - shock, horror - foregoing the annual round of tax cuts.
This paper argues that a blanket ban on government borrowing combined with a freeze on the tax-to-GDP ratio is directly responsible for the erosion of infrastructure, and has created a bias against social investments - even those with high returns and strong public support.