Bush's myopia and the call for national infrastructure investment

Argh, POTUS and his crew of myopic yes-men once again demonstrates he simply "doesn't get it" ... creating a new national infrastructure investment project may be the best way to stimulate the economy in the LONG TERM by providing jobs that CANNOT be outsourced to India and improves our aging and decaying infrastructure. This strikes me as win-win ... but you see what the press lap dog says below: "There's no short term gain."

When do we toss these guys out again?
(BTW, we are also not helping to "harden" any of these infrastructure targets either, which is ANOTHER thing that could be done with such an investment)


February 26, 2008
Bush Cool to States’ Call for Public Works Projects
By ROBERT PEAR

WASHINGTON — President Bush rebuffed appeals from the nation’s governors on Monday to increase spending on roads, bridges and other public works as a way to revive the economy.
Governors said Mr. Bush had told them at a White House meeting that he wanted to see the effects of his economic stimulus package before supporting new measures.

A bipartisan group of governors is pushing for major road and bridge projects as a way to create jobs and foster economic development. But the White House says the money could not be spent fast enough to be of much immediate help.

“There’s no short-term stimulus to the economy for some of these projects,” Dana Perino, the White House press secretary, said.

Full article from the NYT found here.



Furthermore, it is not just the Governors that POTUS ignores on this matter, it is the Congress as well .... see below: (very informative blog post, full version here)

A unique solution to the bureaucratic and financial problems that often beset large-scale infrastructure projects has been proposed by Senators Chris Dodd and Chuck Hagel. On the morning of the Minnesota bridge collapse, as New York Times columnist Bob Herbert pointed out, the senators announced their sponsorship of legislation to create a National Infrastructure Bank. The Bank would issue bonds to raise funds for infrastructure projects that would be selected based on a strict set of criteria. Applications would be accepted only for projects that cost at least $75 million, have a public sponsor (a state or local government), and are of regional or national significance. The Bank would then rate each application based on its promotion of economic growth, its mobility improvements, its reduction of poverty concentration, its environmental benefits, its potential to promote smart urban growth, and its regional or national significance (the criteria vary slightly for each type of infrastructure project).

The National Infrastructure Bank is a first step in creating a coherent vision of American infrastructure. First, the use of bonds – rather than a pay-as-you-go system that relies on yearly revenues – allows the federal government to develop a stable, long-term strategy for economic growth based on infrastructure improvements. Such a financing stream is less subject to political whims and to revenues, which fluctuate with the economy and with legislative action (and inaction). Second, federal funding for infrastructure – in particular, for the transportation system – is often diverted by state governments to other (sometimes) worthy, yet non-infrastructure, projects. Puentes of Brookings points out that the Government Accountability Office has called the federal transportation fund a “cash transfer, general purpose grant program,” and that “the U.S. code neuters the federal role and states specifically that the appropriation of highway funds ‘shall in no way infringe on the sovereign rights of the States to determine which projects shall be federally financed.’” The National Infrastructure Bank would ensure that federal funds are used by state and local governments for specific infrastructure projects, rather than diverted to make up for, say, underfunded federal mandates.

Perhaps most importantly, the selection criteria required by the National Infrastructure Bank would encourage the federal government to undertake projects that are significant to the country’s long-term well-being: rather than stop-gap measures to repair existing problems, such projects would take into account new challenges like climate change, the growing importance of urban areas, and the need for more affordable housing, while at the same time confronting the more typical concerns associated with economic growth (increased air, highway, and port traffic). A database with details about each infrastructure project and its funding would provide at least some public oversight.

Interestingly, political support for an infrastructure bank is growing. The day after Senators Dodd and Hagel announced their plan – and the day after the Minnesota bridge collapse – Senator Hillary Clinton signed onto the bill as a co-sponsor. A week later, Senator Clinton gave a major speech entitled “Rebuilding America: Improving Our Infrastructure” and endorsed the legislation, lamenting that we in the United States “are treading water and being swept backwards.” Her specific plan – like her economic stimulus package – includes a panoply of measures to repair the “backlog” of deficient transportation structures, to conduct safety reviews, to increase public transit funding (and to link these funds to local land use policies), to invest in intercity passenger rail systems, to modernize seaports, to increase funding for congestion reduction programs, and to improve broadband deployment. Senator Barack Obama’s proposal was – like his economic stimulus package – more straightforward.

In his “Keeping America’s Promise” economic speech on February 13th, Senator Obama proposed a National Infrastructure Reinvestment Bank to invest $60 billion in transportation infrastructure over ten years. He has previously called for increased Amtrak funding, high-speed railways, metropolitan planning to reduce traffic congestion, and improved transportation access for low-income commuters. On February 13th, a day after his speech, he signed onto Dodd and Hagel’s bill as a co-sponsor.

Additionally, Senator Ben Nelson of Nebraska proposed an amendment to the Senate’s economic stimulus package that would have directed $5 billion to states for infrastructure projects to be used before October of 2008. Senator Nelson suggested that “An investment in infrastructure and public works projects will not only achieve a much-needed boost to our economy, but will also promote long-term economic growth.”

Pronouncements by presidential candidates and a rather optimistic amendment to fast-tracked legislation are positive, if modest, indicators that a national movement to invest in infrastructure is mounting. Even relatively insignificant problems with infrastructure have received ample attention recently. Earlier this month, the New York Times reported that two bridge inspectors in Georgia had been falsifying inspection records because of a fast approaching federal deadline. Officials were alerted when they noted that the two were inspecting bridges at a rate of 18 per day; the average is 12 per week. Admittedly, there are significant issues to work out with a national infrastructure bank. The European Investment Bank, an infrastructure-financing behemoth established in 1953 and a likely model for an American infrastructure bank, is criticized for its lack of transparency and its lack of social and environmental standards.