Why infrastructure spending still depends on the starting point

Does the Baldwin government's infrastructure spending already address the industrial shortage?

It helps, but historical rearmament starts from a reduced base; the scenario preserves more capacity beforehand.

Government investment in infrastructure remains part of the explanation. The historical effort had to rebuild capacity already lost, while the scenario retains more of it through the interwar years. An illustrative index falls from ten to three historically, or to four in the scenario, then doubles to six or eight during rearmament. Those numbers explain the mechanism without measuring actual output. More continuous employment reduces the capacity that later investment must recreate.