Infrastructure in the Real World

One critique you're beginning to hear about the infrastructure ideas in the president's jobs proposal is that the Recovery Act's infrastructure programs were some kind of bust, of never got started, or whatever.

Demonstrably untrue. There's no question that they did not get up-and-running as quickly as other parts of the program, but here's a graph of the cumulative spendout on public investment (which includes infrastructure along with other investments like clean energy and health IT). And below that, a more specific look at work underway by day 200 on 192 airports and over 2,200 highway projects across the country.

I'm sure you'll hear claims to the contrary in coming days as we debate the infrastructure initiatives in the American Jobs Act, but the fact is that these projects were solidly in the economy by last summer. The problem is we needed more of them this summer, and we'll need more next summer as well.

This post originally appeared at Jared Bernstein's On The Economy blog.

 

Comments

[pooka47401]

10:16 AM on 09/13/2011

Right after the President's speech, the next morning, a bridge connecting Kentucky and Indiana was abruptly closed to traffic. I am sure that it just killed Republican Governor Mitch Daniels to do it, considering the timing. This tells you how our infrastructure is imperiling our citizens. Then there are the Water Mains and Gas Mains that are years over due for replacement. Should I mention how out of date our Nuclear Plants are??? For profit Utility Corporations don't want to spend money to maintain their systems, they just want to make a profit. Maintenance cuts into profits. America will continue to disintegrate until Congress does something. None of the tax breaks in the World will induce the Corporations to invest in their own assets.

[beckjr2000]

11:45 AM on 09/13/2011

You make some good points about needed infrastructure projects but your dead wrong about maintenance in for profit Utility Companies. By virtue of being for profit their is a prime objective to optimize the performance of these utilities, that would include a professionally developed extensive maintenance plan. Return on investment is critical in any long term investment.

[Gurinder Dhillon]

08:48 AM on 09/13/2011

Can a brother get some solar farms?

[Joseph LeCompte]

05:11 AM on 09/13/2011

Not being a civil engineer and all,but water is and will be the most important commodity in the next 100 years.we need a public works project that will dwarf the great wall and everything else. We need a water system that directs flood water from one part if our country to an arid part. Floods from the east could be diverted to the drought in Texas.we need to treat water like gold and oil.it will be worth trillions of dollars.but could feed/save the world

[luminavi]

12:48 AM on 09/13/2011

When even liberal Kevin Drum of Mother Jones calls infrastructure projects like the California High Speed Rail a big BOONDOGGLE, then yeah, maybe infrastructure spending isn't the way to go.

As if construction spending like that was going to spur DEMAND in the first place.

RIght. Anyone check the calendar? It's 2011, not 1911. The days of digging ditches and 'stimulating' the economy are ancient.

Want to stimulate the economy? The money's better spent giving everyone an iPhone or Android phone for free for a year, and teaching everyone how to program an app.

[pooka47401]

10:25 AM on 09/13/2011

It takes jobs, income, for people to spend money. They buy things when they have money and that money creates jobs for those supplying that need. Believe it or not there is a great segment of our population that still does physical labor for their income. And they used to make a decent wage at it. More than the $7.25 minimum wage. Those people built your houses, and dig the ditches that run your water and gas lines. Infrastructure maintenance and replacement is done by those who work the construction equipment and physically put those bolts in your bridges.
Surprise, Surprise, IPhones and Androids can't replace them!!

[Neal113048]

11:49 PM on 09/12/2011

The problem isn't that the projects aren't being done, it's that the projects being done are decided politically and not based on their merits. Infrastructure spending, before the stimulus, is the highest never in real terms and as a percentage of GDP highest since 1981.(http://www.nytimes.com/imagepages/2008/11/19/business/economy/19leonhardt_graphic.ready.html)
A significant portion of that money goes not to the projects that are most needed, but to the projects that buy votes. Spending money to build a bridge to nowhere is worse than simply handing out the money because it uses real resources that could be put to use in a much more beneficial way.

[iridium53]

10:51 PM on 09/12/2011

What I know is that Californians get back $0.78 for every dollar we send the federal government.

This chart shows why.

I'm voting against Obama because I'm tired of being ripped off.

The money goes to the states that have cut their taxes and are simply unwilling to pay their own way.

http://www.taxfoundation.org/research/show/22685.html

These "infrastructure" programs are just more of the same.

[HMON]

06:19 PM on 09/12/2011

Send these to the talking heads on CNN and MSNBC. I have seen several interviews with GOP pols who make jokes about 'shovel ready' and the hosts just nod their heads without challenging the GOP misinformation.

[corwin]

06:06 PM on 09/12/2011

here are jobs and jobs.Certainly,if you own a U Haul franchise in,say Calif. or NY state,the president has been good for you Other wise ,not so much.And,you're at a distinct disadvantage when ppeople see the difference in the economies of the Red and Blue states.A recruiter asked me if I was interested in a job at a Chicago (suburban) clinic. Thanks,but no thanks-you know. he hasn't been able to find an American med school grad who even will interview
You make yourself look ridiculous when you write columns like this.

[oneeasyrider]

04:49 PM on 09/12/2011

Great charts, Jared - no doubt, more than we could have expected from McCain/Palin. However, it is still anemic. Too much of the original stimulus was tax cuts, that simply flowed through the economy like pouring water on sand. Much of the new proposals are the same; little long term effect. We can expect the same results. There is very little stimulus here that is visionary; mostly conservative. Extremely low interest required for the Government to borrow funds for short term infrastructure investment is an affirmation, for the Government to do more; much more. Doesn't matter that conservatives don't understand -- it's the President's job to sell the plan, in the same way he sold himself in 2008. I am not suggesting anything our cerebral - yet conservative President doesn't already know. When a person absolutely knows what is right and just, it's that person's duty to go out and fight for it. Mr. Obama wanted this job; now it's time he stopped messing around - with the race to the middle/mediocrity - stop disappointing liberals (we really do get/understand what is required) and deliver on his potential.

[Jond0]

06:23 PM on 09/12/2011

Agreed!

[Lk Brown]

06:44 PM on 09/12/2011

Amen

[tacevad]

04:43 PM on 09/12/2011

the stimulus worked, the infrastructure portion was not big enough after the republicans got their tax cuts included.

[beckjr2000]

11:50 AM on 09/13/2011

Yes, it worked so well that we only lost another 3 million net jobs since 2009!

[tacevad]

01:04 PM on 09/13/2011

better than losing 30 million which was possible

[nkurland]

04:11 PM on 09/12/2011

There are some unspent federal funds from the Recovery Act, but to merely state it misses two key points. First of all, most of these funds have been allocated for certain long term projects which may have started immediately, but won't be completed for years; this includes infrastructure or safety net increases designed to occur over a prolonged period. Second, many states simply haven't included select stimulus funds in their budgets, despite having received the money.

But its easier to simply cite "unspent funds" since such a term implies a package oversized and full of waste, effectively furthering the Republican narrative, even if it lacks any evidence or broader context.

[rbspickles]

03:54 PM on 09/12/2011

I agree with your comments and I also agree with this jobs stimulus plan and rebuilding our infrastructure. I would much rather see our tax dollars going to our roads, schools, jobs than to billionaire bankers and junk bonds.

[SeriesSeven]

01:59 PM on 09/12/2011

It's always been remarkably amusing that the government used, as a measure of the performance of the stimulus package, how quickly they were able to waste (errrr...spend) money.

Always reminded me of the movie Brewster's Millions. Only difference was there was no benefit in the end for the stimulus, and sailing an iceberg to the middle east would have been a better investment than most of the projects in the recovery act.

[No More Spin]

02:18 PM on 09/12/2011

Please don't use this classic movie as a metaphor for your political diatribe. Richard Pryor and John Candy would be ashamed.

[seanny53]

04:08 PM on 09/12/2011

How is it wasteful to spend money on our crumbling infrastructure? It surely needs upgrading:

http://www.nytimes.com/2009/01/28/us/politics/28projects.html

[TVolm]

05:35 PM on 09/12/2011

I agree with SeriesSeven. All I see is more money being spent as a way of saying "It is working". How much of that was wasted by mandating any funds spent had to go to union shops? How much more could have been done by open bidding on the projects? And lets not ask how much was targeted to help out Dems. Or spent on every liberal wish list in the book. TARP was a payout for Obama's election, and this slowness of getting the money spent is a sham. It was using American's tax dollars and using America's debt money for a re-elect Obama slush fund. I have no doubt somehow a lot of those dollars will be getting spent. About six months before the election.

[Viper]

01:25 PM on 09/12/2011

The problem is we have a major Political party that has for 30 years ignored all reality, fact and science in favor of their failed idealogy.

You will still get in a fight with them if you simply say Reagan trippled the debt and did not cut government spending. but increased it on phoney defense spending projects that created his meager rate of job growth as compared to even CARTER!

Even Reagan disavowed trickle down in the end and raised capital gains tax rate to almost twice their rate today and said oit appears a top tax bracket of at least 50% was required..

I dont know how you can even have a discussion with people who dont believe an argument s/b supported by fact, science, economics or history!

Regards

Regards

[Lynda Groom]

01:14 PM on 09/12/2011

All along the 101 corridor from San Francisco to San Jose you can see the results of the stimulus infrastructure efforts. Hundreds of thousand of drivers pass by the new overpasses and upon the new road surface each and every day. I suppose that a large number of them believe that the program did not work. No surprise there. We live up in the mountains and a few miles south of our town on Hwy 49 a large road project, large for our area at least, is under way right now funded by the recovery act. Too bad the stimulus had not been much, much larger in the first place. Politics over common sense was the problem back then and it still appears to be so today.

[bwestleyj]

01:26 PM on 09/12/2011

All poltiical, Lynda...

Republicans didn't want to be part of a Democratic presidency that was responsible for the recovery of the greatest economic recession since the Great Depression; and, given that he is a minority, didn't want to open that door wider for others to follow...so sad...

[Viper]

01:41 PM on 09/12/2011

It is why repubs opposed signs stating that the improvements were part of the recovery act.. although such signs on where funds come from have been normal for decades!

Of course repubs did show up for the ribbon cuttings and ask for more stimulus in letters claiming how many jobs were created for their districts while saying in public that the stimulus did not work even when it was 4-0% tax cuts.. I though tax cuts always wee the answer...LOL! OR MAYBE WE SHOULD ALL BE CRYING WITH THIS PARTY FIRST, NATION LAST.

Regards