Finally. A move in the right direction. Mr. Obama is supporting an infrastructure investment plan that will be seeded with $50 billion and include the development of an infrastructure bank. Mort Zuckerman will be pleased with this beginning.
It’s a shame this wasn’t done last year with the $800 billion stimulus plan. With mid-term elections closing fast, one can’t help but think this is a purely strategic move to save votes.
Just imagine if 88% of last year’s stimulus package had gone to building roads, bridges, and telecommunications facilities instead of to wasteful projects like greenifying federal office building roof tops or saving the snowy owl. Combined with permanent tax cuts for middle and lower income households, the increased consumption would have probably lowered the unemployment rate somewhere around the natural unemployment rate range of four to six percent.
I have to wonder sometimes if the high-browed Yalie economic advisors surrounding the president ever tried to mix a little common sense into their regression analysis. Had they done so earlier; advised him to focus on this type of job creation instead of an overly expensive social agenda, we would have been a lot further on combating unemployment. This would have created the leverage needed to gain the GOP and the public’s support for Mr. Obama’s agenda.