Saturday, February 7, 2015

Roads and Bridges

  A crumbling overpass support in Marlborough, Massachusetts. (Photo: Richard Klein)

 

 Let me make it blindingly simple.  Infrastructure is typically self financing because it is government credit and normally built to last decades with low sustaining costs and natural revenue sources to support the carrying cost of debt.  Once in a while we have to stretch but even then twenty years is a long time.  Consider something.  Vancouver's sky train system was built in the early eighties on twenty year money when rates were ten percent.  It is long since paid off and throws huge cash to support additional expansion.


Infrastructure is essentially zero risk lending and ensuring longevity ensures huge cash surpluses later.  The problems begin when politicians divert allocated revenues outside the infrastructure budget.  It is just too tempting.


The single best thing that the federal government can do today is provide a matching credit system tied to contracted dedicated revenues to ensure creditworthiness.  Put no limit either.  Get these politicians building already.


It can put fifteen through twenty five million folks to work for thirty years just cleaning up fifty years of neglect.


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Roads and Bridges Need $1 Trillion. It Is Time to Rebuild the US 

Friday, 23 January 2015 10:50 By Bernie Sanders, Campaign for America's Future

 
A crumbling overpass support in Marlborough, Massachusetts. (Photo: Richard Klein)


 http://www.truth-out.org/opinion/item/28691-roads-and-bridges-need-1-trillion-it-is-time-to-rebuild-the-us


Our infrastructure is collapsing, and the American people know it. The Interstate 75 bridge collapse in Cincinnati on Monday is only the latest example. Every day, motorists across the United States drive over bridges that are in disrepair and on roads with unforgiving potholes. They take railroad and subway trains that arrive late and are overcrowded. They see airports bursting at the seams. They worry that a local levee could fail in a storm.

For many years we have underfunded the maintenance of our nation’s physical infrastructure. That has to change. It is time to rebuild America. I will soon be introducing legislation for a $1 trillion investment, over five years, to modernize our country’s physical infrastructure. This bill will not just rebuild our country but it will create and maintain 13 million good-paying jobs that our economy desperately needs.

For most of our history, the United States proudly led the world in building innovative infrastructure, from a network of canals, to the transcontinental railroad, to the interstate highway system. We launched an ambitious rural electrification program, massive flood control projects and more.
These innovations grew our economy, gave our businesses a competitive advantage, provided our workers a decent standard of living and were the envy of the world. Sadly, that is no longer the case. The World Economic Forum’s Global Competitiveness Report for 2015 ranks the U.S.’s overall infrastructure at 12th in the world.

How bad is the situation? Almost one-third of our roads are in poor or mediocre condition, and more than 40 percent of urban highways are congested. One of nine bridges is structurally deficient, and nearly a quarter are functionally obsolete. Transit systems face major unfunded repairs, while 45 percent of American households lack access to any transit at all.

Our nation’s rail network is largely antiquated, even though our energy-efficient railroads move more freight than ever and Amtrak’s ridership has never been higher. Our crowded airports still rely on 1960s radar technology.

The list goes on and on. More than 4,000 of our dams are “deficient” and nearly 9 percent of our levees are likely to fail during a major flood. Many drinking water systems are nearing the end of their useful lives, and wastewater treatment plants often fail during heavy rains. We rank 16th in the world in terms of broadband Internet access, which has serious implications for commerce, education, telemedicine and public safety. We even underfund the parks that preserve our nation’s heritage and natural wonders for future generations.

The United States now spends just 2.4 percent of GDP on infrastructure, less than at any point in the last 20 years. Europe spends twice that amount, and China spends close to four times our rate. We are falling further and further behind, and the longer we wait, the more it will cost us later. Deteriorating infrastructure does not magically get better by ignoring it.

To get our infrastructure to a state of good repair by 2020, the American Society of Civil Engineers says we must invest $1.6 trillion more than what we now spend.

There is no question that the economy has improved significantly since the worst days of the recession. However, the U.S. Department of Labor says the real unemployment rate – which counts those who have settled for part-time work but who would like to work full time, and those who have given up looking for jobs entirely – is a completely unacceptable 11.2 percent.

My legislation puts 13 million people to work repairing the backlog of infrastructure projects all across this country. Moreover, each project will require equipment, supplies and services, and the hard-earned salaries from the jobs created will be spent in countless restaurants, shops and other local businesses. And, all of this economic activity will generate new tax revenues to pay for the services that Americans expect and deserve.

It is no wonder that groups from across the political spectrum – from organized labor to the U.S. Chamber of Commerce – agree that investing in infrastructure makes sound economic sense.

The good news is that it is not too late to get back on track. Let’s rebuild America.

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