A Stimulus Package That Could Really Change Things

January 30, 2008

 

As we appear headed toward a $150 billion stimulus package to jumpstart economic growth, how about a radical idea?  Let’s catalyze economic growth, put people back to work, and invest in a safer and better future all in one fell swoop.  How about a stimulus package focused solely on repairing the nation’s crumbling infrastructure?

 

The American Society of Civil Engineers estimates that $320 billion per year will be needed over the next five years to repair our infrastructure.  Let’s scrap the proposed $150 billion stimulus, and use this money as a down payment on an investment that will pay dividends for generations. 

 

With the tragedy of the Minneapolis bridge collapse nearly completely forgotten, it’s hard to create a rallying cry around repairing bridges and tunnels and roads.  But long commutes, dirty water, delayed flights, decaying school buildings and failing dams profoundly impact America’s productivity and security.  And imagine what an injection of $320 billion a year could do for the construction industry, particularly if tied to aggressive minority participation goals.  Thousands of low-skilled workers throughout the country would be connected to stable, family wage-paying jobs.

 

Infrastructure policy is a colossal failure in this country, largely because it’s handled through the earmark system.  Senator so-and-so wants a new road in his state, and he sneaks it into an appropriations bill.  No vetting of the project or its need.  No cost-benefit comparison with competing projects in other states and regions.

 

The solution might lie in some form of a BRAC-like (Base Realignment and Closure) program for infrastructure.  Pull major infrastructure investment decisions out of the political process – much as BRAC does for military base closures – and you’ll get results that make a whole lot more sense.  Combine this with a stimulus package that seeds massive spending on infrastructure, and we’ll get the economic boost we need with the double-barreled bonus of investing in both human and physical capital.

 

 

 

 

Please take a look at other recent Change Fan Blog posts:

 

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01/16/08  Foundations of the Future: Philanthropy in 2020

01/10/08  Overcoming a Lousy Year for Closing the Digital Divide

01/04/08  If We Could Just Get People to Use the Revolving Door