UH OH....The infrastructure plan is failing too

[txlonghorn]

US shuns some big public works projects - Yahoo! News

I guess Gov. Christie isn't alone in his wisdom. But...the reality is plain and simple...you can't spend what you don't have.

 

[saveliberty]

Subjugating state's rights to the federal funds dollar is not very attractive these days.

Besides, its hard to make a case for a big road project with no police protection after its built.

 

[waltky]

Ain't dat leverage stuff what got us into the financial mess we in??...

Infrastructure bank: Plan would leverage federal money
March 15, 2011: A bipartisan group of lawmakers want to create an "infrastructure bank" that would help finance infrastructure projects. Can the federal government leverage $10 billion in spending into $640 billion in funding to build new roads and bridges?

Sens. John Kerry of Massachusetts and Kay Bailey Hutchison of Texas think so, and want to create a federal infrastructure bank that would provide loans and loan guarantees to help fill gaps in project financing. Here's how it would work: After an initial round of federal funding, the bank would offer loans to give projects a needed jolt of money. Eventually, interest paid on the loans would make the bank self sufficient.

Kerry and Hutchison introduced the legislation -- dubbed the BUILD Act -- during a press conference on Tuesday. They were joined by an unlikely pair: AFL-CIO union boss Richard Trumka and U.S. Chamber of Commerce president Tom Donohue. Trumka is a powerful voice for unions in Washington; Donohue represents the most influential business lobby.

The two organizations have come together before around common interests in government spending. But their willingness to speak in support of the proposal suggests the bill might gain momentum despite the anti-spending climate. "We are living with very difficult budget circumstances, not just in Washington but in every city, state and town throughout America," Kerry said. "We need to do more with less."

The federal government currently spends about $65 billion a year on infrastructure, $50 billion of which goes to local and state governments in the form of grants. While that sounds like a hefty chunk of change, it's actually around 2% of federal spending. Other countries -- including China -- are spending far more on infrastructure as a percentage of gross domestic product, Kerry said. "We have a choice," Kerry said. "We can either build and compete and create jobs for our people, or we can fold up and let everyone else win."

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[gekaap]

The problem with saying "you can't spend what you don't have" is that it's never before been true when it comes to the government. For decades the government has been spending money it doesn't have. It's become institutionalized into the culture. Politicians don't even talk about eliminating deficits, or reducing the debt. They actually parade increases to the debt as good things, and the public swallows it hook, line, and sinker.