Infrastructure spending

Despite the hoopla around infrastructure spending that accompanied the various stimulus plans, it has been reported that only $72 billion has been allocated to that effort. The majority of the money has been allocated to shoring up local and state governments who simply do more of the same. As David Patterson of New York said when allocated $4 billion for education, "now I don't need to change anything", that in a state with inflexible teachers unions, custodians unions, you name it.

China spends almost 10% of its federal budget on infrastructure development, India almost 9%, and of course the reaction is that they need to do that. The U.S. spends 2% on an overall infrastructure that is running out of time in the northeast, mideast, midwest and west coast. It was an amazing accomplishment in the last century but it needs reinvestment. Under Roosevelt, to get the economy going, admittedly with many missteps, the part of the federal budget dedicated to infrastructure was 13%.

From highways to water systems to dams to electric grids to bridges the infrastructure in many parts of the U.S. is in disrepair. Several months ago, riding in a taxi from the airport in Paris it was immediately apparent how up to date, nice and clean everything looked, the expressways, the off ramps, everything, compared to a trip from JFK or LGA in New York. Paris is not exactly a new city, but they seem to be staying on top of investment in a way that we in the USA do not.