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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Opinion

Our View: Infrastructure investments best help in hard times

Like a working parent nodding off in front of the TV, the U.S. economy needs a strong jolt of caffeine. Congress is debating a variety of stimulants, but the most effective one might require putting politicians on the sidelines.

Last spring, Congress responded to negative economic forecasts by authorizing tax rebate checks, but the effects were as long lasting as a sugar high. Some leaders are suggesting another round of checks, but they should first consider the whole point of the exercise. The idea is to ensure that the money is spent, preferably in the United States and on U.S. products and services, so workers can regain employment and employers can forestall layoffs. But Americans are not inclined to go shopping these days and for good reason.

So the answer is for the government to spend money – a lot of money – on highways, bridges, schools, harbors, sewer systems, mass transit, airports, railroads, etc.

The feds and the states have a huge backlog of infrastructure projects that are ready to go. An estimated 3,000 highway projects could begin within 30 to 90 days with cash on hand, according to the American Association of State Highway and Transportation Officials. Many other projects have been delayed because funding ran out. The north-south corridor in Spokane is a prime example.

Putting construction crews back to work would stimulate local economies. The workers themselves would have spending money, and the sale of construction materials would boost businesses and tax collections. Mark Zandi, an economist for Moody’s, estimates a return of $1.59 for every dollar spent on infrastructure. Plus, those projects will never be cheaper than they are now.

Two rational objections arise. First, the money must come from somewhere, so the federal deficit would rise in the short term. But it will rise even more if the economy falls into a deep sleep. Second, Congress has proved through pork barrel politics that it can’t be trusted to spend wisely.

That’s a valid concern, and it’s why Congress should step aside and allow an independent body to dole out the money. New York Times columnist David Brooks recommends a commission like the one that determines which military bases to close under the Base Realignment and Closure (BRAC) process.

Removing politics would pave the way to objective decisions driven by two questions: Will the project provide a quick boost to the economy? Is the project worth having over the long haul?

The U.S. economy desperately needs a cash infusion. Infrastructure spending is a bridge to a better future.