In his not-eagerly-awaited speech on creating jobs in America, Obama will try to accomplish three well-work socialist goals: (1) Blame the lack of new jobs on the Republicans, (2) to expand the power of the federal government, and (3) propose public works infrastructure projects.
The first and second tactics require no explanation. The only question is the precise nature of the lies and name-calling he will employ. The third objective is worth looking at. Public works infrastructure projects are hoary tradition in progressivist, socialist, and communist societies. We can easily think of the Italian and German fascists of the 1920s and 1930s making the trains run on time and the Russian communists building the Moscow subways. In the US, building Hoover Dam and other dams in the Midwest are often held up as great New Deal projects and the National Defense Highway system of the 1950s (continuing) is held up as a project everybody agreed upon. Obama, like all progressive liberals and socialists, drools over public works projects. The political payoff for such projects is irresistible: posters, news video footage, and photo ops in hard hards in front of CGI renderings of big train stations with shiny trains, towering dams, big yellow Caterpillar tractors, airports with big jet liners, all providing the illusion that something wonderful is coming to the voter from the "Government" at someone else's expense.
So why would anyone object to Obama proposing infrastructure projects today? Well, it's all in the details.
What is to be solved by the infrastructure projects? If the goal is to generate jobs and draw the unemployed labor back into the employed labor force quickly, say within several years, then infrastructure project cannot meet those goals. They simply cannot.
Infrastructure projects today are performed within a huge, multi-layered, federal and state regulatory context. There was no such thing as "shovel-ready" construction projects in 2008, there are none today. Why? Because decisions and review and approval take an enormous amount of time -- years. There are no fast tracks. There is never enough money to go around, so political processes must be invoked to decide which projects to pursue and how to schedule them. State and federal reviews must be conducted before any construction can be dones -- state and federal Environmental Impact and EPA reviews, labor reviews, construction plan review. Competitive bidding must be conducted. Rules must be set for winning bids, as to labor force composition, where women contractors are given a fair shot at winning bids, etc. Land and construction rights must be obtained. Political process of public hearing review of plans and review of reviews must be conducted, followed by inevitable law suits. Eminent domain proceedings must be engaged. Losers along the way will sue and also engage in politics to prevent projects from proceeding. Look at how far along the famous rapid rail projects of California have come in more than three years. Exactly no where. Construction projects will not employ a single person for years, certainly not in time to prevent our economy from falling off the cliff of a second "Great Recession".
Obama is also expected to endorse a National (i.e., Federal) Infrastructure Bank to assist financing of infrastructure projects. Well, this should work out just swell. Such a bank would add an another agency and its review to the list of reviews above. And can we really trust such a bank not to screw up construction? Remember the federally insured mortgage banks that created the financial crisis of the Great Recession by granting millions of mortgages to poor credit risks, all in the name of social objectives? And why do you think a federal infrastructure bank would be any better? It's not needed and would only add a level of political mischief to already politically corrupt process of public works infrastructure construction. Construction companies feed fees to the public coffers and contributions to re-election campaigns, then receive construction contracts in return for projects, paid out of tax monies, of questionable value. Think of the famous rail line connecting New York City to JFK. Think hundreds of millions of dollars wasted.
Conclusion: Public works infrastructure projects would add trillions to the national debt, requiring increase in taxes to pay for the debt, not employ a single person for years, and intensify the political corruption of publicly funded public works construction.
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