How does investment in capital goods and infrastructure contribute to economic growth?

What will be an ideal response?

Capital goods (plant, equipment, tools) are needed by workers to be more productive. New investment in capital goods helps workers produce more goods and services per work hour, thus increasing labor productivity. Labor productivity is a key factor of economic growth. Infrastructure is also important because there is a need for public capital goods (highways, harbors, bridges, educational facilities) that help businesses and their workers get the job done sooner. For example, if the highway infrastructure is poor, it will be more difficult for businesses to get their products to market and it will require more work time on the part of their workers, thus reducing labor productivity.