Hey, that's what we did...

[Gob]

back in 2008, worked for us...

Barack Obama announces $50bn infrastructure plan



President Barack Obama has called for a new comprehensive infrastructure plan as part of efforts to to jump-start the spluttering US economy.

The plan will invest about $50bn (£32.5bn) in roads, railways and airports as well as high-speed rail and the creation of an infrastructure bank.

US infrastructure has long been considered underfunded and receives poor grades from government agencies.

US Economy

* US sees 54,000 jobs go in August
* Fed mulls further debt purchases
* US consumers less glum in August
* US consumers spend more in July

The move comes amid signs that the US economy is faltering.

On Friday, the US Labor Department announced that the US economy had lost a further 54,000 jobs, while the unemployment rate rose to 9.6%, from 9.5% in July.

"Over the next six years, we are going to rebuild 150,000 miles of our roads - enough to circle the world six times," Mr Obama told an event in Milwaukee marking the Labor Day holiday in the US.

"We're going to lay and maintain 4,000 miles of our railways - enough to stretch coast-to-coast. We're going to restore 150 miles of runways and advance a next generation air-traffic control system to reduce travel time and delays for American travellers - something I think folks across the political spectrum could agree on."

It's the Labor Day holiday in the United States. This traditionally marks the start of the mid-term election campaign. President Barack Obama is beginning this campaign by focusing on the single biggest issue for voters.

The president knows that no matter what else he has achieved, his administration will be judged by its record on the economy. In particular he will judged by where he stands in relation to one number: 8.5%. This was the unemployment rate when Mr Obama took office. This number now stands at 9.6%, making it hard for Mr Obama to argue that he has made people's lives better.

US presidents enjoy quoting their predecessors. Barack Obama likes it so much that he had the new carpet in the Oval Office inscribed with quotations from four US presidents. But two famous presidential lines in particular didn't make it onto the rug. They are lines that won their authors the White House.

* "Are you better off now than you were four years ago?" - Ronald Reagan, 1980

* "It's the economy, stupid." - Bill Clinton, 1992

These are lines which may stick in the president's mind as the mid-term election campaign gets going.

"All of this will not only create jobs now, but will make our economy run better over the long haul," Mr Obama add.

Mr Obama also called for the creation of a permanent infrastructure bank that would focus on funding national and regional infrastructure projects.

The proposals would require congressional approval, which analysts say, is uncertain amid concerns about the size of the federal deficit.

Senate Republican Leader Mitch McConnell said the plan "should be met with justifiable scepticism" because it would raise taxes.

The infrastructure announcement marks the start of a week in which Mr Obama will focus on the economy, seen as the most important issue for voters in Novembers congressional elections.

On Wednesday the president travels to Cleveland, Ohio, where he is expected to unveil new tax proposals. On Friday he will speak in Washington.

BBC North America editor Mark Mardell says Mr Obama's announcements this week are all about positioning, and appealing to working class men in particular.

His message in the next two months, and more importantly the next two years, will be "the Republicans robbed us of recovery", our correspondent adds.

A CNN/Opinion Research Corporation poll of 1,024 US adults released on Monday suggests 52% of people would vote Republican, against 45% for the Democrats, up by 4% on last month.

The proposals call for investments over six years, but would be backed by an initial $50bn.

Reports quoting White House officials suggest the administration would consider closing tax breaks for oil and gas companies to pay for the plans.

In 2009, a report from the country's top civil engineers found that the state of America's infrastructure had not improved in the past four years.

The "Report Card" from the American Society of Civil Engineers gave the US a D grade for its roads, public transport and other basic services, saying an estimated $2.2tn (£1.5tn) was needed for repairs.

"In 2009, all signs point to an infrastructure that is poorly maintained, unable to meet current and future demands, and in some cases, unsafe," the report said.


http://www.bbc.co.uk/news/world-us-cana ... print=true

[Crackpot]

We've needed serious infrastructure investment for the past 20 years. It's a shame that it has to come as "stimulus".

[Gob]

Better than not at all though surely?

Do you think he'll be able to get the measure passed?

[Crackpot]

It's not unlikely. Though it may look completely different upon passage.

[Gob]

Typical of the right wing press in the USA, The Drudge Report has a huge banner headline;

ADDICTED TO STIMULUS: $50,000,000,000 MORE

Whicch links to this, which has nothing whatsoever about "addicted".

[dales]

A sop to the construction unions during mid-term elections. [YAWN]

[Gob]

So what would your suggestion be for digging the USA out of its economic woes, Dales?

[Sue U]

A sop to the construction unions during mid-term elections. [YAWN]

Unemployment in the construction sector is 17%. Why is this a "sop" rather than simply employing the Americans who keep our bridges, roads and rails from crumbling into dust to do that necessary work? Or do you think that every time the government spends money on anything it's only a "sop" to some constituency?

[Big RR]

I agree Sue, it looks like a pretty good way to approach two different problems, unemployment and our crumbling infrastructure.

[Lord Jim]

Oh, this is a splendid idea for those amongst the 15 million unemployed who have road building skills...

I'm not trying to knock the idea of an investment in infrastructure...

I think it's definitely called for, and I support it...

Like the construction of the interstate highway system in the 50's, it will pay long term dividends for American commerce....

But it is nonsensical to call that "stimulus"...

One of Obama's photo ops a couple of weeks ago, illustrates the problem he has...

He was proudly announcing a two billion dollar grant to a pair of solar power companies who's efforts would create 1500 jobs...

Two billion dollars; 1500 jobs...

My cheapo calculator doesn't have enough decimal places to do the math, but doing it my head, I believe that at that rate it would cost 20 trillion dollars to put 15 million people back to work...

The fact is that we have people running the government, from the President on down, bright folks though they may be, who whatever other fine talents they may have, know absolutely nothing about how to kick start an economy....


I don't have an MBA from the Chicago School Of Business, but I know that we're not going to get this 14 trillion dollar economy back on track with solar panels and wind mills...

[Big RR]

Well Jim, unlike solar panels, road and bridge building/repair, will involve people of many skill levels, from those to design/manage the projects to those who operate the equipment, to the unskilled/semiskilled positions of rakers and flagmen. It will produce dividends as well in orders for materials and parts, and possibly spur some factories to hire to meet the production quotas, and will employ additional truckers/railroad workers for delivery. There will be some upward movement in employment, and these will be jobs which perform needed repairs and maintnenance.

I don't recall the details of the solar panel program you are referring to, but it could yield benefits in the future if the technology becomes more affordable and is commercialized here, so maybe the money was an investment in future growth.

[Gob]

Shiny happy "Nation Building" website from the Aussie govt.

n stimulating the economy the Australian Government is looking to fund projects which will have lasting benefits for communities across the nation.

And which will also boost local infrastructure and support jobs.

In getting on with the job, the Australian Government is funding:

* A new 21st century school library, multipurpose hall, or classroom modernisation for each primary school in Australia.
* New science labs or language centres for 500 secondary schools.
* Grants of up to $200,000 for individual school communities to fund much-needed maintenance.
* A household Renewable Energy Bonus Scheme to assist households to save money on power bills and reduce their carbon emissions
* Up to 19,200 new houses, through a direct investment and assistance of the social housing sector up to 19,200 new houses.
* 802 new houses for the Australian Defence Force.
* Urgent maintenance to upgrade over 60,000 social houses – including major maintenance to over 10,000 run down homes that without repairs would not be able to be used as social housing.
* An additional 30 per cent tax deduction for small and general businesses buying eligible assets.
* 350 additional projects in the Black Spot Program
* Installation of around 200 new boom gates at high risk rail crossings.
* $650 million funding boost for local community infrastructure and maintenance on Australia’s national highways.
* One off cash payments to eligible families, single workers, students, drought affected farmers and others. If you earned less than $100,000 in the 2007-08 financial year and paid tax you could be eligible for a tax bonus payment of up to $900.

All of these require skills in the building area, but as has been said, there are other skills and trades, as well as managerial and design opportunities there, and most of the development will provide ongoing work withing the infra structure established.

[dales]

So what would your suggestion be for digging the USA out of its economic woes, Dales?

Silly old me would first:

Stop the insane military spending.

Second:

Reign in the g*d d*mmed banks.

Third:

Enact FAIR TRADE Legislation

Fourth:

Secure our southern border

Fifth:

Cut federal spending 10% across the board.

That would save a good trillion right there, aid our balance of payments, make the dollar stronger, and put REAL MONEY in people's pockets.

[Gob]

Ok, I cannot see much to disagree with there, what do you mean by "fair Trade" policies though?>

[The Hen]

Nation building programs helped Australia and New Zealand during both the Depression and the Global Economic Financial Crisis.

Nothing like a bit of manual labour to ensure you don't suffer. Unemployment was stabilised for us and we felt no ill effects from the Global crisis.

[dales]

Ok, I cannot see much to disagree with there, what do you mean by "fair Trade" policies though?>

Not allow goods produced overseas that could be made here in the US.

We used to have scores of factories humming right along producing all type of goods for the domestic market.

Tariffs if need be.

With 15 million people out of work, this would be a good start.

[Gob]

Nothing "fair" about those Dales!

[Crackpot]

I tend to view fair trade as free trade with developed countries with a good standard of living and workers rights and a scale of tariffs for others cuts down on worker exploitation and job outsourcing to abuse cheap labor at the expense of all workers.

[oldr_n_wsr]

Here in the NY/NJ area we pay enough tolls for the roads and bridges for them to pay for their upkeep ten times over. But the MTA takes 90% of the money, squanders it and then gets the state to bail them out by granting them a payroll tax on any county/municipality they serve. Then they cut the rail/bus service back to those areas.

Listen to this

http://www.youtube.com/watch?v=fWacc6L9NoU

[Scooter]

Ok, I cannot see much to disagree with there, what do you mean by "fair Trade" policies though?>

Not allow goods produced overseas that could be made here in the US.

We used to have scores of factories humming right along producing all type of goods for the domestic market.

Tariffs if need be.

With 15 million people out of work, this would be a good start.

You are way too focussed on who produces the cheap shit you consume. Here's a not-so-much-a-secret: China is already moving its economy away from producing cheap shit for Walmart. They have already figured out that it's a dead end. In 50 years time the world's most powerful economies will not be manufacturing-based.

You have one of the world's most educated workforces, and you want them to, what? Sit on a line making sneakers? Your economy could do that when you had an underclass of black and hispanic and female workers who were ready to work for pennies. You don't have that anymore, unless they are illegals. Time to move on.