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Jared Bernstein

Jared Bernstein

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Our Crumbling Infrastructure: This Time, It's Personal

Posted: 06/ 2/11 09:53 AM ET

For the second day in a row, there is no power in the building which houses my employer, the Center on Budget and Policy Priorities (the CBPP website is still up, though). Apparently, a number of buildings in that part of town are out. PEPCO, our local utility, says we'll be back on at noon today, but we'll see.

OK, so let's get this straight. We've got major infrastructure deficits in this country, including an electricity grid that's demonstrably unreliable. I get that systems come down, but a city block...for two days! That's a little scary.

And my situation is, of course, a microcosm of a larger, known problem. Check out the 2009 Report Card from the American Society of Civil Engineers:

Aviation D


Bridges C

Dams D

Drinking Water D-

Energy D+

Hazardous Waste D

Inland Waterways D-

Levees D-

Public Parks and Recreation
C-

Rail C-

Roads D-

Schools D

Solid Waste C+

Transit D

Wastewater D-

America's Infrastructure GPA: D

Estimated 5 Year Investment Need: $2.2 Trillion


There's the demand. Where's the supply? Um... how about 20+ million un- or underemployed, including construction workers, whose unemployment rate is about 18%.

I know... show me the money. These are public goods, and thus private industry will underinvest in them. Now, I know we're in the midst of spending-cut frenzy, but infrastructure investment -- that's "investment" as in: do this right and it boosts the economy's productive capacity -- has historically been one area where partisans agree.

In that regard, it was unfortunate to read Rep. Eric Cantor in this AM's paper get this wrong: "The president talked about a need for us to continue to quote-unquote invest from Washington's standpoint, and for a lot of us that's code for more Washington spending, something that we can't afford right now."

No, sir -- with respect, that is not secret code. The president is right, and to ignore needed public investments based on anti-spending ideology is to create an infrastructure deficit much more worrisome and damaging to the long-term economic well-being of this nation than the federal budget deficit.

Plus, I kinda need to get back in the office one of these days.

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

 
 
 
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12:05 PM on 06/03/2011
Yes, it is a crying shame that we're letting our infrastructure and our willing but unemployed workers down. If we cut the budget now, it will tank the economy and create even more unemployment. The president needs to put away his ill-conceived budget-cutting plan, fess up and admit that we are in danger of having a double-dip recession because of government inaction, use his bully pulpit to persuade the American people that the only effective way to get ourselves clear of this deteriorating recession is to temporarily increase government spending on various public works and infrastructure-improvement projects. And to achieve this goal, he must call for the creation of a WPA-like jobs creation program which would hire all applicants at the minimum wage but give them good working conditions. This jobs program would not cost that much, since we would no longer need unemployment insurance and other programs related to unemployment.
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Jay Ryan
11:45 AM on 06/03/2011
We need an infrastructure funding bank!
10:17 AM on 06/03/2011
More potholes and homeless people. The Republican answer to jobs in America.......uh..........jobs for them, not us, that is :-)
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AsISaid
09:23 AM on 06/03/2011
We've failed in our responsibility to build upon what other generations bequeathed to us. We don't even respect the need to repair what we've been handed by others that sacrificed for the future - our present.

We stroke ourselves over being 'exceptional', but in fact, we've accepted mediocrity - except in our military might.

It's sad what this nation is fast becoming. What will it take to turn things around?
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09:04 AM on 06/03/2011
There are several addititional reasons why our infrastructure is crumbling besides a lack of investment
One is the use of the lowest bidder concept. This is the government agency issues a set of parameters for a group of construction companies to meet and the company that submits the lowest bid wins the contract. You get what you pay for is the result as many roads, bridges and other public works projects end up crumbling before their time. There is very little innovation in these projects. Then, in order to keep cost overruns down and maximize profits, shortcuts are taken which puts the public in peril with substandard results.
Another problem is the back room deals and handshakes between contractors and politicians. I live in Cuyahoga County Ohio (Cleveland) and we are in the midst of a huge county government scandal that exposes this conflict of interest. Bids were rigged so that they go to friends and donors of the politicians in power.
So we need to reform our system of bidding and work on construction projects and allocate money to adequately rebuild our nation.
08:42 AM on 06/03/2011
800 billion dollars wasted. Why was it not spent to repair our "crumbling" infrastructure.

"Crumbling infrastructure"= road to nowhere=another way to pay off democrats special interests=bullet trains to nowhere.
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Jay Ryan
11:30 AM on 06/03/2011
If you remember, it couldn't be passed without a Republican in the Senate joining to break the filibuster. For that one vote, 30% of the stimulus wound up in tax cuts instead of infrastructure.

That's why.
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rextrek
50yr old, Moderate-liberal in S.NJ/Phila
08:19 AM on 06/03/2011
aint it something...just heard not more then 2hrs ago on NPR on my way into wrk - America is GIVING Pakastan BILLIONS to BUILD SCHOOLS, BRIDGES,Water Treatment plants ETC ETC ETC......while Our country falls to peices???
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frank day
Republican = FAIL
08:10 AM on 06/03/2011
Work that needs to be done.

Workers available to do the work.

Broken economic system that is unable to pair the two together.
11:52 AM on 06/03/2011
Stark and well put! Fan! It's a crime that neither the WH nor the Repubs are willing to even try to do the pairing. It's the biggest problem we have, not the phony deficit "crisis."
07:16 AM on 06/03/2011
When that bridge or dam collapses, it will equally kill the Mega-rich clutching their tax cuts as well as the poor.
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Jay Ryan
11:32 AM on 06/03/2011
Mickey, one can hope, but in most parts of the country, the neighborhoods near critical infrastructure, dams, sewage systems, power plants... are poor neighborhoods.
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Kittyburger
Schrodinger's micro-bio may or may not be empty.
01:59 PM on 06/03/2011
Dam failures are particularly catastrophic. Failure of the Grand Coulee or Hoover Dams, for example, would kill everyone downstream and leave millions without power.
07:11 AM on 06/03/2011
Yesterday, Bruce Bartlett (who was an economic advisor to Pres. Reagan) was doing his best to point out that our total effective tax rates are today much lower that they have been for decades. When I saw that report yesterday it got me thinking. Sixty years ago or so the Greatest Generation paid higher tax rates and decided to invest that money in the future prosperity of the United States - the GI Bill, infrastruc­­ture (electrifi­­cation, roads, modern airports, etc.), the community and state college systems, reasonable oversight and regulation of the financial system, etc. Now many of the folks who benefited the most from that investment - older white Americans - want to turn their back on making investment­­s in the future prosperity of the United States by keeping tax rates low and starving government spending and investment­­. This is selfish beyond measure.
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Kittyburger
Schrodinger's micro-bio may or may not be empty.
07:36 AM on 06/03/2011
And I don't think it's a coincidence that the Americans benefiting the most from those investments now are a more diverse bunch. People of color, and women have been gaining power, and that scares the old power structure half to death. Infrastructure investment was just fine as long as nonwhites and women "knew their place."
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APMOTRBC
Urban Warrior Princess of The Table!
07:54 AM on 06/03/2011
You nailed fabulous kitty . . . this is actually borne out by data . . .it has everything to do with "those people wasting my hard earned money," and nothing to do with rational governance or even money being wasted. It's about "those people' not having it.
05:05 AM on 06/03/2011
My work has a natural gas generator. Any data center usually does.
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02:07 AM on 06/03/2011
We have money for every war on the planet, we have money to bail out the big banks ( which cause alot of the wars on this planet} but when it comes too this country we can have austrity. The elite who run this country(and the world) never quit all for them nothing for anybody else. French revolution?
12:34 AM on 06/03/2011
to bad the stimulus went to thousands of pet projects instead of what the country truly needed,the fixing of bridges,roads,infrastructure.but they literally wasted billions on junk projects.how pitiful and pathetic.how much stimulus is left?however much it is,i bet will get spent right before the election.
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APMOTRBC
Urban Warrior Princess of The Table!
01:09 AM on 06/03/2011
where are the junk projects? In my community they went to the most needed things.
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Kittyburger
Schrodinger's micro-bio may or may not be empty.
06:34 AM on 06/03/2011
Indeed. In my area, stimulus funds went into enhancing a much-needed toxic waste recycling program; into several roads that I drive over daily; into keeping 50 police officers on the roads in Minneapolis alone; and those are just the things that I've experienced in the last 48 hours.
08:44 AM on 06/03/2011
it went to buy votes for 2010 and especially 2012. It was the worst legislative act and biggest waste of taxpayer funds in american history.
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Jay Ryan
11:37 AM on 06/03/2011
"it went to buy votes for 2010 "

How can you say that was the purpose when we all know how the 2010 election turned out. Care much about reality?
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11:35 PM on 06/02/2011
Bridges? We don't need no stinkin' bridges! Not standing anyway ...
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FogBelter
Illegitimis non carborundum
10:38 PM on 06/02/2011
Mr Bernstein, I was watching the Dylan Ratigan Show today and he was interviewing William Holtstein, author of "The Next American Economy" (which, I admittedly haven't read yet) and I was impressed with the discussion of different specialized fields on the horizon that America could lead in, but then I thought, not all Americans have the training or aptitude for the technical careers touted. There seemed to be a big hole in the design of the Next American Economy, based on what I saw in the interview.

Then your discussion of infrastructure struck me as an incredible opportunity for job creation for Americans for whom the rarefied fields aren't attainable. We need a hybrid approach to the future economy that includes excellence in innovation and dedication to the infrastructure required to empower it. All Americans have a seat at that table.

We need a full court press on infrastructure revitalization and it should start immediately. If we can get idle Americans into jobs improving infrastructure we can revitalize the economy in the short term as well as the long-term.

Congressman Cantor might not recognize the economic benefits of infrastructure revitalization, but the American people can't wait until he does. We must press on, now!.
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gerald4
licensed mechanical and electrical engineer
11:01 PM on 06/02/2011
How will the US government get funds to pay for that!

Over the past two or three decades, both major political parties of the US congress decided to destroy our manufacturing and the associated technology human database capability with “FREE TRADE” legislation and treaties. The US congress has also destroyed the US creative capabilities and the database of technically oriented people that won WWII and created the economic power that the USA enjoyed for a few decades after WWII, because the technical innovation, product development and design capabilities and the associated jobs went overseas with the manufacturing capability.

The USA is no longer the World Technology leader that the USA was until maybe the early 1970's.

Asian countries are now are the technology leaders.

The best and brightest students in the USA have pursued the more financially rewarding non-scientific careers, instead of educations that might have created technically innovative products that people in foreign countries might purchase.
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FogBelter
Illegitimis non carborundum
11:45 PM on 06/02/2011
The US Government has many tools at its disposal to get the job done. Our debt is an artificial concern. Wall Street and the Banks might worry about the debt and deficit because of its impact on investments. The more money the US Government prints the less the dollar is worth and that impacts investments, but, as a sovereign nation, the United States is obligated to the interests of the citizens not investors, Investing is gambling, if the United States is required to take extreme economic measures to get the nation back on track it can, even if it means adding trillions more to the debt in the short run, it can do it ... it's just that the markets don't like its impact on their holdings.

Economics is a creation of the imagination of man, not a fixture of the natural world and it can be forced to adapt to new conditions as required.