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losing its competitive edge. One of the group’s founders, the
Pennsylvanian, Mr Rendell, called for congressional action on
infrastructure issues, urging priority for high-speed rail projects
in the Northeast corridor and along the California coastline.
Mr Rendell, a fellow member of President Obama’s Democratic
Party, told the Scranton (Pennsylvania)
Times-Tribune
(9
th
August):
“If we are going to maintain our economic dominance, we have
to get on the stick and get on it fast.” It was a message he would
repeat to the
New York Times
columnist Frank Bruni: “We should
be talking about big things” (27
th
August).
BAF called upon policymakers to invest $200 billion a year in
infrastructure over the next decade, an infusion that it says could
create nearly ve million jobs. The money would be generated in
part by raising the US gasoline tax, which BAF points out is one
of the lowest among major Western economies.
❈
BAF is not alone in its concerns. Also in midsummer, the
American Society of Civil Engineers released a report on the
state of American transportation infrastructure. According to
ASCE, if the US does not make an e ort to improve its roads
and bridges, it will lose $3.1 trillion in GDP growth by 2020.
The
Hu ngton Post
(27
th
July) noted that the cogency of this
call to action was underscored by the support it attracted
from leaders who are not often in harmony.
Tom Donohue, president and CEO of the US Chamber of
Commerce, said: “[The ASCE report] further reinforces that the
US is missing a huge opportunity to ignite economic growth,
improve our global competitiveness, and create jobs.”
Richard Trumka, president of AFL-CIO, the largest federation
of labour unions in the US, said: “With a modest increase in
investment [as prescribed by ASCE], we can rebuild a strong
economy where business can thrive.”
In US manufacturing, the trend is still up.
Is that enough to help the economy?
On the day on which the contributors to the “Room for Debate”
blog in the
New York Times
considered this question, US
economic news was mixed. The manufacturing sector had been
expanding slowly but steadily for 24 consecutive months; and
with a gain of 117,000 jobs in July, the labour market also was
improving – temporarily, as it turns out. But the congressional
antics during the debate over extending the nation’s debt
ceiling had jangled Wall Street, and Standard & Poor’s, citing
“the gulf between the political parties,” had lowered by a
half-notch the top credit rating that the US had enjoyed since
1941. (“Can Manufacturing Fuel a US Recovery?”, 5
th
August).