EoW November 2011

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).

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.

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EuroWire – November 2011