Latest US infrastructure plan doubtful of passing a divided congress

As the US struggles with high unemployment and a listless economy, it is faced with an infrastructure system that desperately needs updating.

The last notable investment in US infrastructure dates to the 1950-1960s period when the interstate system was built. Many changes within the country have occurred since then. However, the infrastructure has not been able to keep up due to the lack of adequate funding.  The US currently only invests about 2.5% of GDP on infrastructure; compared to China, which invests around 11% of GDP on infrastructure, and Europe, which invests about 5% of GDP on such projects. It is evident from this comparison that the US is slipping as a major force within the global economic trade community.

With unemployment stubbornly remaining above 9%, President Obama recently introduced a plan to help put people back to work. Within the plan, the President calls for a $50bn investment in infrastructure that includes such projects as $27bn to improve highway systems; $10bn for funding high-speed rail corridors; support for NextGen Air Traffic Modernization efforts and investments in Transportation Investment Generating Economic Recovery (TIGER) and Transportation Infrastructure Finance and Innovation Act (TIFIA) programmes and a $10bn investment in a National Infrastructure Bank.

President Obama’s latest plan is not new, in fact, it is almost identical to one he introduced last year. The National Infrastructure Bank, for example, was first introduced to the country when Obama was running for President. Last year, it was included in the proposed 2011 budget, but was rejected by a House Appropriations Committee transportation panel subcommittee in July. Transportation and Infrastructure Committee Chairman, John Mica, commented that instead of a National Infrastructure Bank "run by Washington bureaucrats requiring Washington approval and Washington red tape", he would prefer encouraging states to create their own infrastructure banks.

Still, the infrastructure plan is a step in the right direction if the US wants to remain competitive in the global market. Unfortunately it faces a doubtful future as questions of how to finance the plan have been raised and an unwillingness of both political parties to work with one another. Added to this is the early beginning of the 2012 Presidential campaign which is further exacerbating hopes of passing any meaningful legislation.

Quelle: eyefortransport
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