Tags: rebuild | us | economy | infrastructure

Schwarzenegger, Mayor Bloomberg: To Save US, Rebuilt It

By    |   Friday, 12 Aug 2011 08:32 AM

Lawmakers and economists often seem at a loss for exactly how to fix the economy. The key is to invest billions in U.S. infrastructure, according to a group headed by New York's mayor, Michael Bloomberg, Edward Rendell, former governor of Pennsylvania, and Arnold Schwarzenegger, former governor of California, one of the most indebted U.S. states.

Their organization, Building America’s Future Educational Fund (BAF Ed Fund) claims to be a coalition “dedicated to bringing about a new era of U.S. investment in infrastructure that enhances our nation's prosperity and quality of life.”

The group recently released a report calling upon policymakers to invest $200 billion a year in infrastructure for the next 10 years, a plan it says could create nearly 5 million jobs over the next decade, reports the Huffington Post.

arnoldschwgetty200.jpg
Arnold Schwarzenegger
(Getty Images photo)
Pointing to how far America has fallen behind, the Huffington Post says the report claims that China's Shanghai port moves more containers in a year than America’s largest seven ports combined.

That America's infrastructure needs to be updated is not a debut idea. According the Fiscal Times, the American Society of Civil Engineers (ASCE) gave the US infrastructure a “D” grade.

ASCE released its own report on the matter in July, reported the Huffington Post. That document claimed that if the U.S. doesn’t make an effort to improve its roads and bridges, the country will lose $3.1 trillion in GDP growth by 2020.

“BAF Ed Fund's study also points out how inadequate public transportation hurts the checkbooks of average Americans,” says the Huffington Post. “It says, American households spend 17.6 percent of their income on transportation costs, more than what they spend on food. Among the nation’s poorest households, that figure rises to 40 percent.”

According to the Times Tribune, Rendell warns that the $85 billion spent annually by local, state and federal governments isn't enough to prevent aging infrastructure dating back to the 1960s from continuing to fall apart.

President Barack Obama has repeatedly talked about the poor condition of U.S. infrastructure and the need to invest in its upgrade to create jobs and to benefit the nation. However, doing so requires substantial amounts of money and at the moment increased spending isn't a popular idea.

If policy makers are open to the idea of the upgrade, BAF Ed Fund has several solutions for overcoming the money issue. The Times Tribune quoted Rendell as saying “a large chunk of the needed revenue can come from the private sector,” also known as the public.

One of the group's ideas is to allow states to toll interstate highways, says the Times Tribune. The creation of a national infrastructure bank is proposed in the report. And, another suggested revenue stream is to push up gas taxes.

The federal gasoline tax — which the report claims is among the lowest in major western nations — has been levied at 18.4 cents a gallon since 1993, noted the Times Tribune.

The paper reports that BAF Ed Fund's report calls for Congress to pass a six-year comprehensive transportation bill that includes highway, bridge, rail and aviation projects instead of just approving extensions.

"If we are going to maintain our economic dominance, we have to get on the stick and get on it fast," Mr. Rendell told the Times Tribune.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Lawmakers and economists often seem at a loss for exactly how to fix the economy. The key is to invest billions in U.S. infrastructure, according to a group headed by New York's mayor, Michael Bloomberg, Edward Rendell, former governor of Pennsylvania, and Arnold...
rebuild,us,economy,infrastructure
548
2011-32-12
Friday, 12 Aug 2011 08:32 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved