Daily PUMA Column - Commentary by Alessandro Machi

Showing posts with label infrastructure. Show all posts
Showing posts with label infrastructure. Show all posts

Tuesday, November 24, 2009

Is China Destroying our Infrastructure?

(Edit update, the investigation has now expanded to include american made drywall)


From tainted toys, to tainted baby food, and now, DRYWALL! It doesn't get much more "infrastructured" than drywall, does it? Even the New Orleans Saints were affected by the tainted drywall. Apparently the drywall fumes are dangerous and destroy wiring, and probably aren't so great for people's lungs either.

What about those yellow gas lines that all the hardware stores now carry that are made in China? Are we going to find out they only last a couple of years and then leak and cause home explosions? Just asking.


Wednesday, July 29, 2009

Why Infrastructure Projects are a hit and miss proposition when it comes to Stimulating the economy.

Yes, infrastructure projects are a necessary part of government. The problem is, we can't use the acceleration of infrastructure projects to help the economy, unless something else is also done. I'll get to that something else momentarily.

Infrastructure projects should be a constant, steady part of the budgeting process on a yearly basis. To suddenly say we need massive infrastructure projects wrapped inside of a stimulus package means we either are creating busy work, or government skimps on infrastructure projects year after year.

Creating busy work is ok, but NOT when it uses too many resources that could be used to create new job streams and new technologies.
As for our government not spending the proper infrastructure budget on a yearly basis, that means the money that was supposed to be spent on infrastructure every year, has already been spent elsewhere.
So now we are paying TWICE for the same infrastructure project, and therein lies the problem. Paying twice for the same infrastructure project, the first time the money was reallocated elsewhere, is not a good deal and DOES NOT stimulate anything that would help the economy.
There is a solution to avoid paying twice for the same infrastructure project. Any infrastructure project that was previously delayed so money could be reallocated elsewhere, CAN ONLY BE DONE NOW IF IT IS COMBINED with a NEW, PROGRESSIVE, INFRASTRUCTURE PROJECT that is generally regarded as helping save energy or resources, or create new products that save energy and or resources.
So if there is bridge that needs to be refurbished, FIND SOMETHING that creates energy efficiency that the refurbished bridge connects to.

Will the refurbished bridge support other types of transportation besides automobiles?

If the refurbishing of the bridge will also create an improved route for other forms of transportation, such as electric bicycles, joggers, and pedestrians, then it becomes an infrastructure project with an obvious purpose other than just trickling down money to us minions on projects that don't make us feel connected to improving our countries method of operating.

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Friday, February 6, 2009

Fixing Infrastructure DOES NOT stimulate the economy, it actually does the opposite.

When it comes to "infrastructure" spending, unless a road, bridge, electrical line, or sewage system's collapse is imminent, not spending on infrastructure can actually stimulate the economy faster.

Instead of government prematurely fixing infrastructure, let the private sector know which potholes are not going to be filled so private investors can invest in alignment shops, tire stores, car repair bays, and build the repair shops on both sides of the potholes. Even rims and hubcap places will experience terrific economic stimulation if infrastructure is just left as is and assuming general safety is not being compromised. This will save the government billions on unnecessary infrastructure repairs, and many many new car repair businesses will crop up as a result of LESS infrastructure spending.

One key to a useful stimulus program is to stimulate the consumer to get the consumer to want to pay to fix things that they own that break, including their cars. Another aspect to not going crazy on infrastructure repair is to motivate the consumer to go out and buy a new, "stronger car" that comes with a pothole protection plan. (I bet some car manufacturer will now come up with such a program)

Flying road debris may also stimulate cars into being repainted more often. The less roads that are fixed the more overall stimulation is created, it's how the west was won.

The key to capitalism has never been about efficiency, it's always been about filling the needs of people in need. If we prematurely fix roads and bridges while they still work, we are just increasing the country's long term debt via this bailout bill while simultaneously hurting all aspects of auto maintenance and auto manufacturing.

Better roads mean people's cars will last much much longer than they currently do. Plus, those extra automobile fix it shops that were going to be built near the potholes, the people those new businesses were going to employ, and the taxes that these businesses were all going to pay, never happened because all the roads were fixed instead.

One pothole making machine can do a whole lot more economic stimulating than one hundred construction people fixing an unbroken road ever could.

"But, but, you can't be serious". Well, consider this a "Modern Proposal".

Assuming that infrastructure repair means the timely maintenance of roadways, bridges, electrical and sewage lines and has been done on an annual basis following a logical maintenance schedule, than it really should be business as usual and no stimulus program is needed for infrastructure at all....

....unless, the overall rate of yearly infrastructure deterioration has been occurring at a much greater rate than it was being repaired all along???

If the government is behind on its infrastructure repair maintenance schedule AND the economy is tanking as well, then clearly the government didn't spend wisely over the past few decades on infrastructure, and instead diverted infrastructure funds to pad their own pet projects in ways we'll never know. "If you don't have the money to do infrastructure right the first time, how are you going to have the money to do infrastructure correctly, later?" I would suggest that using taxpayer money to give roadways a new coat of asphalt before it is necessary, is not a way to stimulate the economy.

Fixing only the neediest bridges and roads is all that is needed for infrastructure, and that infrastructure money should already have been allocated within the yearly budget anyways. "What, you mean money that was supposed to go to annual infrastructure maintenance was being diverted to other projects? Really???" So the government now wants to borrow even more money to do the work that should have been being done all along anyways???

Just who wants to stimulate a bunch of politicians now, when it appears they have used prior years budgets to stimulate their own needs rather than fix infrastructure at the proper yearly maintenance level? I don't.

I hope you can understand that as silly as this blog article seems, everything in it is the truth, and that is why we have a MUCH BIGGER problem related to how to run a worldwide economy without it being stimulated by wasteful spending and inefficiency.

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