A novel plan for economic stimulus

In response to the most significant downturn in the economy in a century, President-elect Barack Obama has asked governors and municipal leaders to propose “shovel-ready” projects to stimulate our economy. Gov. M. Jodi Rell has responded with a list of proposals from the departments of Transportation and Public Works, including many to rebuild our bridges and roads. On the surface, this sounds reasonable. But over the last few years we have discovered to our dismay that superficial decisions made in haste often have unintended consequences. Let’s think this through.

What’s different now?


In the 1930s, even though the U.S. economy collapsed, we still had a surplus of natural resources — we were then the world’s No. 1 producer of oil and coal.

Fast forward 80 years.

Despite the recent temporary dip in the price of gas and heating oil, it has become painfully obvious over the past few years that our energy situation has fundamentally changed. We’ve burnt through much of our natural resource birthright — we import 70 percent of our energy — and we’re the largest debtor nation on earth. The Big Three automakers, near bankruptcy, have announced a 40 percent to 50 percent reduction in car sales; the Federal Transportation Department reported an 8 percent annual drop in passenger miles driven. The National Intelligence Council’s “Global Trends 2025″ report concluded that, in the near term, pressure on resources — particularly energy, food, and water — would entail sacrifices as demand outstrips supply. The Defense Department arrived at the same conclusion in its “Joint Operations Environment 2008″ report. It would appear that we need to plan for a less energy-intense future.

Connecticut imports 98 percent of its fuels from out of state. That means that a very large proportion of the money you spend on fuel or heating also leaves the state. None of this money is available to recirculate in our local economies. Why don’t we address this problem, along with the economic one?

Connecticut Post