Thursday, June 14, 2012

On U.S. infrastructure, spend now, gain later

On U.S. infrastructure, spend now, gain later
Tampa Bay Times
By William L. Holahan and Charles O. Kroncke, special to the Times
Wednesday, June 13, 2012

"...When the American Society of Civil Engineers issued a report card giving D and F grades for major infrastructure assets in the United States, the group estimated that it would cost $2.2 trillion to rehabilitate them. Even though these public sector assets support the private sector of the economy, and despite the availability of cheap money, Congress has no current plans to remedy this situation.

Its reluctance to support investment in infrastructure is unfortunate because this is an opportune time to earn a better report card; presently, we can borrow at very low interest rates to upgrade our streets, roads, bridges, railroads, school buildings, Internet bandwidth and K-12 education. We have earned the trust of foreign investors, who value the safety of our financial markets and seek to loan us money through their purchases of U.S. Treasury bonds.

In the short run, infrastructure investment would stimulate business growth and employ otherwise unemployed resources of labor and equipment. In the longer run, when these assets are in good working order, they would support faster growth of the economy, a prerequisite for bringing down the national debt and putting workers back on the path to higher after-tax incomes."

Read rest of article

AddThis Social Bookmark Button


WPA Posters

Created with Admarket's flickrSLiDR.