We should move away from a semi-user-fee system for construction and maintenance of highways and bridges and use general tax revenues since we all benefit from a highway system, either/both directly or indirectly.
MidlandMike Euclid Our infrastucture is always due for maintenance, but it should not be used until it all falls apart and then be completely replaced in one national effort. Yet that is the false premise being put forward by the "crumbling infrastructure" meme, which is really just an excuse to spend money to grow the government. Yes, our infrastructure should be constantly maintained, but it hasn't because Congress has not raised the gas tax to keep up with inflation for about a quarter century. As usual they don't react until things fall apart, now they need to have a "surge" program. How does spending money on infrastructure grow the government? The spending goes to private contractors. State highway departments increasingly use private consultant engerneering firms even in design work.
Euclid Our infrastucture is always due for maintenance, but it should not be used until it all falls apart and then be completely replaced in one national effort. Yet that is the false premise being put forward by the "crumbling infrastructure" meme, which is really just an excuse to spend money to grow the government.
Yes, our infrastructure should be constantly maintained, but it hasn't because Congress has not raised the gas tax to keep up with inflation for about a quarter century. As usual they don't react until things fall apart, now they need to have a "surge" program. How does spending money on infrastructure grow the government? The spending goes to private contractors. State highway departments increasingly use private consultant engerneering firms even in design work.
Don't forget the CAFE regulations were enacted to increase the fuel mileage on all new vehicles being constructed, therefore, decreasing the amount of fuel purchased and thus decreasing the number of gallons subject to fuel taxes - federal, state and local.
And then the push for electric vehicles that we have yet to figure out an effective means to tax the electricity necessary for the vehicles operation on the highways.
Never too old to have a happy childhood!
EuclidOur infrastucture is always due for maintenance, but it should not be used until it all falls apart and then be completely replaced in one national effort. Yet that is the false premise being put forward by the "crumbling infrastructure" meme, which is really just an excuse to spend money to grow the government.
After this catastrophe is over the railroads are going to removing a lot of freight it'll get congested
More like a way to raid the Treasury (and thus middle class bank accounts) to fatten private construction companies.
Even if it is not financed by "printing of money," (thus inflationary), it is still money that has to be spent. If it is spent, we either have it in reserve or we borrow it. If we borrow it, it has to be payed back over a range of future time. If it is being paid back, that reduces the amount of investment capital available from the private sector.
Our infrastucture is always due for maintenance, but it should not be used until it all falls apart and then be completely replaced in one national effort. Yet that is the false premise being put forward by the "crumbling infrastructure" meme, which is really just an excuse to spend money to grow the government.
For that deception, the "crumbling infrastructure" is a cash cow; always promising to fix all the potholes once and for all. The worst thing that can happen is to have both parties agreeing on the need for such a colossal boondoggle. As pure stimulus, it is fake economomics.
We'll see if the Feds can quickly sell enough treasury bonds at par with 1% interest. If they can finance the new stimulus with that, it might not be as inflationary as one would think.
To paraphrase Sen. Everett Dirksen (R-Ill) from the 1960's:
"A trillion here, a trillion there - pretty soon you're talking about some real money."
I've been thinking about the inflationary and hence devaluation effects of the federal deficit ever since the late 2017 tax cut bill increased it up to about $1 trillion a year (whoever thought we'd be talking about that number?). Surprisingly, that hasn't happened yet. But it leaves less margin for this latest round.
I predict the inflation/ devaluation - when it takes hold - will adversely affect the share price of the PSR railroads.
- PDN.
My goodness, surely we understand that RR's will benefit whether or not they themselves receieve money. When all business resumes they will participate in it as they did prior to this terrible event. We sure do not need more government created to oversee how these funds are utilized.
I believe this complusion for stimulus is probably the more dire effect of the pandemic. It is being spurred on by people who actually believe the economic nonsense that stimulus grows the economy.
I believe there is a tipping point at which large progects become too large to beat back the natural inclination for cost overrun. It is like a feeding frenzy. The project gets too big to (let) fail. Eventually, it has to be canceled at an unimaginable loss.
Stimulus has the same dynamic plus more dangers in that it is fake money, and causes real inflation. It is also a ruse to grow empire of government. Two trillion dollars in one punch is more than enough to destroy our economy for the above reasons. Inevitably, its cost will overrun. I predicted that the 2-trillion will rapidly turn into 4-trillion.
Sure enough, we are now being told that this would be a good time to rebuild our (fake) Crumbling Infrastrure. What is needed for that is another 2-trillion dollars. It only took about a week to go from 2 to 4. Where it stops, nobody knows.
Paul_D_North_JrSome are owned by conglomerates of many such lines. And will the owners be willing to accept the conditions that would come with the money?
Some are claiming that the requirements for oversight will not be rigidly enforced
This story here, for instance.
Some are owned by conglomerates of many such lines.
And will the owners be willing to accept the conditions that would come with the money?
Seems like the priority thus far has been geared towards smaller businesses, so the big class ones might be shut out. But, some of our favorite shortlines and regionals might qualify.
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