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Page added on July 16, 2014
America should heal itself (and use lots of steel in the process)
US president Barack Obama is spending much of this week pushing his multi-year plan to spend $300 billion on infrastructure and to keep current funding from expiring next month — issues dear to the hearts of the nation’s steel executives.
The week started off with the White House release of a new report on “the long-term economic benefits of transportation investment.” The 26-page report notes that 65% of America’s major roads are rated in less than good condition; 25% of its bridges require significant repair or can’t handle today’s traffic, and that 45% of Americans lack access to transit.
The American Iron and Steel Institute, representing the bulk of American steel producers, has two very good reasons for supporting the push for more infrastructure spending. While the most obvious is the increased demand for steel, the industry also relies heavily on water transportation to move supplies such as scrap, iron ore and coal into its mills and to move finished steel out to its customers.
Citing a report by the American Society of Civil Engineers, the AISI notes that aging infrastructure in America’s ports and waterways was responsible for delays costing $33 billion in 2010, and that handicap is expected to increase to nearly $49 billion in 2020. Costly delays are also proliferating on America’s roads and bridges due to increased weight restrictions prompted by deteriorating infrastructure.
“A globally competitive national economy depends on an effective and efficient transportation infrastructure,” the AISI states.
Everyone seems to agree that the need to fix America’s roads, bridges and waterways is critical. But Obama’s plan to fund the upgrades longer term includes corporate tax restructuring and Congress once again stands in opposition. So Obama is taking his effort on the road in a series of speeches and photo-ops in front of crumbling infrastructure.
There is an old saying that the business of America is business. As a practical matter it would seem wise for corporations to accept some effectively higher taxes for the benefit of all, including themselves and the economy. In the words of 19th century French social critic Alexis de Tocqueville: “The greatness of America lies in not being more enlightened but rather in her ability to repair her faults.”
Platts
15 Comments on "America should heal itself (and use lots of steel in the process)"
Plantagenet on Wed, 16th Jul 2014 7:08 pm
The US would be a lot better off REDUCING car use and moving to mass transit and intercity trains rather than following obama’s failed ideas to build ever more roads and cars, and boost US consumption to ever higher levels
GregT on Wed, 16th Jul 2014 8:32 pm
Plant,
Obama is doing everything that he can, to make sure that YOU do not live a life of chaos, turmoil, and abject poverty. Unfortunately, Obama’s good intentions will ultimately fail. Cars, roads, and consumption will eventually come to an end, just like in most of the rest of the world. Ever been on mass transit in India? I have, and it doesn’t resemble anything remotely like what you appear to think that it does.
Makati1 on Wed, 16th Jul 2014 9:44 pm
GregT, I would not be so sure he is doing everything to make life better for the sheeple. I suspect he is doing what is necessary to keep the government alive, nothing more or less.
$300B is less than the cost of the F35 (or whatever it’s called) planes that are in production now. You know, the one 7 years behind schedule and over budget. The one that catches fire before it can leave the tarmac.
It is also much less than the 12 nuclear subs he wants to build at the cost of $400B+. So, what is the problem? Gridlock. A failed government now resides in DC. The MIC/CIA/NSA runs America. No the government.
Northwest Resident on Wed, 16th Jul 2014 11:47 pm
A lot of steel and other materials needed to fix America’s roads, bridges and waterways would require huge amounts of oil to extract, transport, manufacture and deploy. But oil is just exactly what we don’t have enough of. And how would they finance all that work? Print another trillion dollars? But let’s simplify those realities and put it into terms that even morons can understand — it is Obama’s failed ideas that are to blame for our national transportation infrastructure falling into disrepair.
Plantagenet on Thu, 17th Jul 2014 12:38 am
@GregT
Why not face the facts honestly?
Poverty rates in the US are now at all time highs. Your naive belief that Obama is reducing poverty is belied by the facts —- poverty has gone UP under Obama, not down.
Northwest Resident on Thu, 17th Jul 2014 12:55 am
Plant, poverty went up under Bush too. And it will go up under whoever the next president is, and the next. Economic growth is over — kaput — done. We’re headed down hill and nobody can stop this train we’re all on. Don’t you get it? A president and all his men and all the elites can try to manage the slide down, you know, try to keep the brakes on to control the descent. Blaming Obama for the ills in the world today reveals a very simple and non-analytical mind on your part, sorry to say.
Norm on Thu, 17th Jul 2014 2:49 am
How ya gonna stop a bridge from rusting, and re-paint it, if everybody on legalized pot, food stamps & welfare?
Beery on Thu, 17th Jul 2014 6:17 am
Norm, legalized pot is still sold at a profit, while food stamps and welfare are always paid for ONLY while the vast majority are employed – that’s how a social safety net works “to promote the general Welfare”, as the Founding Fathers envisioned. If you don’t like it, there are plenty of neo-fascist dictatorships that would love to have you as a citizen.
bobinget on Thu, 17th Jul 2014 8:35 am
The American Tea La Bonne like it’s Mideast namesake,
looks at pay equality, full employment, education, minority rights, marriage equality, Climate Change mitigation, ‘promoting the general welfare’ as government interference.
I’m sure the GOP has nothing against new Infrastructure repair, modern passenger rail, but is loath to permit any long lasting legislation that could possibly attributed to our current President in future. In point of fact, we are at stalemate.
penury on Thu, 17th Jul 2014 9:11 am
Really people lets face facts. The U.S. spends all of its money on MIC. Look at the budgets passed for the Defense industry. The amount of money spent for the military actions in Central America would pay for the refugee crisis if we just withdrew the Special Forces and CIA from these countries. The cost of infra-structure repair could be handled for the cost of the new submarines that have been approved. Close 189 bases in 139 countries and spend the money domestically. However, there is zero interest in doing these things among the politicos or the voters.
Davy on Thu, 17th Jul 2014 9:35 am
Pen, patience, when the time comes the rapidity of the departure from these places will knock you socks off. Quite often it takes what seems like forever to change then all at once monumental change happens. In this case with so many dollars, people, and time invested change will take time. The crisis’S’ coming will change that. The troops will be needed at home and the money won’t be there. 5 yrs who knows but minimum 10 knowing what we know here about PO.
John D on Thu, 17th Jul 2014 10:26 am
In my neck of the woods most transportation funding is for new roads. Seems to me with miles driven going down they should focus on maintaining the roads we already have rather than increase the amount of highway miles to maintain.
Davy on Thu, 17th Jul 2014 10:50 am
John here in Mo there are few new roads going in. The lion share is maintenance and repair. I have allot of respect for MODOT.
Norm on Fri, 18th Jul 2014 1:55 am
sign me up. this place sucks.
Norm on Fri, 18th Jul 2014 2:04 am
i did not realize when the founding fathers said ‘promote the general welfare’ they were actually talkin about paying fifty grand a year to bums in Cadillacs, paying the rent on drug houses, and food stamps for meth heads.
Hey the food stamps pay for high fructose soda pop poison, how about the food stamps pay for fireworks too. the trailer trash love to blow off fireworks. the 3 most sacred things that made america great, are cigarettes, booze, and fireworks. ask any tea bagger.