Monday, February 29, 2016

Regarding the congressional response to a slow economy: What, Me Worry?

If the AZ Lege is not enough to drive you gibbering mad, try congressional inaction on the nation's crumbling infrastructure. Here are snippets from Karl Reiner's post at Blog for Arizona.

A fiscal boost comes with capital spending on new infrastructure and/or the maintenance of existing systems. The money spent on schools, roads, hospitals and water systems induces complementary spending in other sectors of theUncertainty economy. The potholed roads in American cities push up car-maintenance cost by $700 per vehicle. A third of America’s roads are in poor shape, one in nine of the nation’s bridges are no longer structurally sound. In 2010, the U.S. Senate blocked a proposal to establish a public infrastructure bank and a plan to spend $50 billion on improvements to roads, railways and airports. It was just part of the ongoing partisan squabbling that has slowed the recovery.

... The Federal Reserve has virtually nothing left in its arsenal of recession fighting and economy stimulating tools. If and when the next recession arrives, it will be up to the administration and the standstill Congress to come up with new programs. Based on the record of the recent past, the prospects are not very good for the United States.

See? I told you. Head for the toons.

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