from the Infrastructurist:
America’s Infrastructure DeficitPosted on Wednesday January 5th by Eric Jaffe
Seven of the country’s major transit projects received a late (or very early) Christmas present last week, when the Federal Transit Administration announced the distribution of $182.4 million under the New Starts program, which provides aid to local subway, light rail, and bus rapid transit lines — and, we’ve argued, creates jobs in the process.
The recipients include New York’s Second Avenue Subway (nearly $41 million), for part of the route that will service Manhattan’s east side; the Washington, D.C., Metro (almost $20 million), for a five-station extension in Northern Virginia; and Utah’s popular TRAX system (roughly $20.6 million), for a nine-stop, 10.6-mile addition. The biggest winner was the Long Island Rail Road, which received more than $44 million for the construction of a passenger concourse in Grand Central Terminal (currently LIRR dumps passengers at Penn Station, on the west side). Quoth LaHood:
“We want to keep the projects moving and people working with these early investments, which will save these cities money over the long haul.”
Early infrastructure investment might be the plan for these seven projects — but unfortunately it’s not the plan for the country at large. Ezra Klein, no stranger to the argument that now is a great time to spend on infrastructure, says there are two types of deficits in present-day America: The budget deficit we’ve heard about to death, and the “investment” deficit that’s rarely mentioned. Infrastructure projects, Klein wrote Monday, are a great way to address the latter:
The American Society of Civil Engineers estimates that the nation needs about $2.2 trillion in infrastructure repairs and upgrades merely to bring the existing infrastructure up to “good condition.” But has America’s rallying cry really gone from “We’re No. 1″ to “We’re only $2.2 trillion away from good condition”? How inspiring.
Our runways are clogged, our rail system is decrepit, and our levees — well, the ASCE gave our levees a D-minus — and its report came out four years after Hurricane Katrina. But in 2011, infrastructure is more than roads, rails and runways. The United States lags the rest of the developed world in broadband speed, penetration and cost. The country has no smart grid to speak of. We don’t just need to bring our infrastructure up to “good condition.” We need to make it better.
Here’s the good news: Infrastructure investment is the best deal in the economy right now. Government borrowing costs are lower than they’ve been since the 1950s. Unemployment in the construction sector is above 15 percent, which means companies are desperate for work and bids to complete projects are coming in low. A weak global economy means cheap raw materials. Bottom line? These investments are more affordable now than they’re likely to be in a few years. We’d be foolish to miss this opportunity.
The opponents of passenger rail and public transit projects often mention high taxpayer cost like it’s the only important factor in infrastructure decisions. It’s time to mention opportunity cost as well.
http://www.infrastructurist.com/2011/01/05/americas-infrastructure-deficit/
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
