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The Road to Prosperity
Author: BobR
Date: 10/06/2010 12:08:15
Back at the height of the Great Depression, FDR created a public works program to help put Americans back to work. Eisenhower did the same, creating the interstate system in post-war America. The fruit of their labors was a greatly enhanced national infrastructure that we still enjoy today. However, along the way we didn't maintain much of it, and it's become more and more decrepit. With unemployment still high, it seems like a perfect time to invest in our infrastructure again. The problem, of course, is paying for it, or at least justifying a budget deficit to pay for it. It can be done without increasing the deficit, if people are willing to look beyond the "conventional wisdom".
One major justification for infrastructure investment is that our prosperity depends on it. Without a reliable electric grid, effective water and sewage systems, and transportation systems, we will lag behind other developed (and even under-developed) countries in the world:
With record budget deficits, it will be difficult to find dedicated federal funding for this. One silver lining in this cloud of debt is a new report indicating that the TARP program - rather than costing taxpayers $700B, will actually cost closer to $30B. That means that over $600B could be spent on infrastructure improvements and updates without adjusting the projected budget deficit.
But of course it doesn't work like that. Money's are allocated for certain budget line items - they can't just be moved from one to the other. It might actually be necessary to raise taxes. Nobody will support that, even though they should. Some of our most prosperous times in our country's history were because of high taxes, NOT in spite of them:
(NOTE: The article is a VERY good read - I highly recommend you read the whole thing; it's not very long).
So higher taxes will force businesses to reinvest in themselves, which is good for unemployment, and thus good for the economy (and will reduce the deficit). Higher taxes will allow us to bring our infrastructure into the 21st century, allowing us to maintain our presence on the global market. As WP columnist Ezra Klein notes: infrastructure is the best deal in this economy.
We used to build things in America - now's the time to invest and rebuild ourselves. It's not socialism - it's patriotic. We just have to be willing to pay for it - upfront.
One major justification for infrastructure investment is that our prosperity depends on it. Without a reliable electric grid, effective water and sewage systems, and transportation systems, we will lag behind other developed (and even under-developed) countries in the world:
The United States is saddled with a rapidly decaying and woefully underfunded transportation system that will undermine its status in the global economy unless Congress and the public embrace innovative reforms, a bipartisan panel of experts concludes in a report released Monday.
U.S. investment in preservation and development of transportation infrastructure lags so far behind that of China, Russia and European nations that it will lead to "a steady erosion of the social and economic foundations for American prosperity in the long run."
That is a central conclusion in a report issued on behalf of about 80 transportation experts who met for three days in September 2009 at the University of Virginia. Few of their conclusions were groundbreaking, but the weight of their credentials lends gravity to their findings...
With record budget deficits, it will be difficult to find dedicated federal funding for this. One silver lining in this cloud of debt is a new report indicating that the TARP program - rather than costing taxpayers $700B, will actually cost closer to $30B. That means that over $600B could be spent on infrastructure improvements and updates without adjusting the projected budget deficit.
But of course it doesn't work like that. Money's are allocated for certain budget line items - they can't just be moved from one to the other. It might actually be necessary to raise taxes. Nobody will support that, even though they should. Some of our most prosperous times in our country's history were because of high taxes, NOT in spite of them:
High taxes create an incentive to reinvest profits into long-term growth.
With high taxes, the only way to retain the bulk of the wealth created by a business is by reinvesting it in the business -- in plants, equipment, staff, research and development, new products and all the rest. The higher taxes are (and from 1940 to 1964 the top rates were around 90 percent), the more this is true. This creates a bias toward long-term planning.
If a business is planning for the long term, it wants a happy, stable work force. It becomes worthwhile to pay good wages and offer decent benefits.
Low taxes create an incentive for profit taking.
It is easy to confuse profitability with wealth creation. They are not the same.
President Eisenhower built the interstate highway system. There is no doubt that this gave the country an asset of great value, one that was very productive. It created great "wealth." But, aside from the construction companies that contracted the work, it was not profitable.
Selling subprime mortgages, trading in derivatives, packaging mortgage-backed securities and "flipping" condos were all very profitable but did not create wealth.
The theory is that if the rich can keep their money, they will invest in businesses that create jobs, more businesses, more tax revenue and greater "wealth" for the nation.
[...]
Proponents of tax cuts take the position that taxes take money out of the economy. That's flat out not true.
Governments don't keep the money they collect; they spend it. It goes right back in. It just takes a different route. It goes to different places...
(NOTE: The article is a VERY good read - I highly recommend you read the whole thing; it's not very long).
So higher taxes will force businesses to reinvest in themselves, which is good for unemployment, and thus good for the economy (and will reduce the deficit). Higher taxes will allow us to bring our infrastructure into the 21st century, allowing us to maintain our presence on the global market. As WP columnist Ezra Klein notes: infrastructure is the best deal in this economy.
We used to build things in America - now's the time to invest and rebuild ourselves. It's not socialism - it's patriotic. We just have to be willing to pay for it - upfront.
Comments:
Order comments Newest to Oldest Refresh Comments
Comment by 
Raine on 10/06/2010 12:42:39
Raine on 10/06/2010 12:42:39
THIS IS PERFECT!
We used to build things in America - now's the time to invest and rebuild ourselves. It's not socialism - it's patriotic. We just have to be willing to pay for it - upfront.
We used to build things in America - now's the time to invest and rebuild ourselves. It's not socialism - it's patriotic. We just have to be willing to pay for it - upfront.
Comment by 
wickedpam on 10/06/2010 12:43:58
wickedpam on 10/06/2010 12:43:58
Morning 
I know of about 3 different roads I travel to get to work they could start with for infrastructure jobs right off the top of my head - we can use that "surplus" our dumbass gov is hording
I know of about 3 different roads I travel to get to work they could start with for infrastructure jobs right off the top of my head - we can use that "surplus" our dumbass gov is hording
Comment by wickedpam on 10/06/2010 12:46:44
wickedpam on 10/06/2010 12:46:44
BTW - I heard the best line listening to Kirk and Mike on 105.9 this morning. It comes from Mike's 90 year old mom. a die hard New England Dem, she says "Sarah Palin doesn't have enough brains to blow soup"
Comment by 
TriSec on 10/06/2010 12:59:39
TriSec on 10/06/2010 12:59:39
Just spooling up Keith, where he noted that he's got a real Bozo and a real Witch coming up on the show....would that be our own Laurie Cabot (of Salem, MA), whom I know slightly?
Comment by TriSec on 10/06/2010 13:02:06
TriSec on 10/06/2010 13:02:06
I've been pushing for a new WPA for years now....preaching to the choir.
Only instead of building airports and roads, I'd want to see the bulk of it go to rail infrastructure. When I can get on a train at South Station at 7am and get off at Penn Station by 10, we'll talk. You can do that in Europe, Japan, and China. (200 miles.)
Only instead of building airports and roads, I'd want to see the bulk of it go to rail infrastructure. When I can get on a train at South Station at 7am and get off at Penn Station by 10, we'll talk. You can do that in Europe, Japan, and China. (200 miles.)
Comment by wickedpam on 10/06/2010 13:17:21
I would love some serious rail upgrading - every time I watch the Amazing Race and they have to hop on a train in any place other then here I just don't understand why we don't have rail like that.
wickedpam on 10/06/2010 13:17:21
Quote by TriSec:
I've been pushing for a new WPA for years now....preaching to the choir.
Only instead of building airports and roads, I'd want to see the bulk of it go to rail infrastructure. When I can get on a train at South Station at 7am and get off at Penn Station by 10, we'll talk. You can do that in Europe, Japan, and China. (200 miles.)
I would love some serious rail upgrading - every time I watch the Amazing Race and they have to hop on a train in any place other then here I just don't understand why we don't have rail like that.
Comment by TriSec on 10/06/2010 13:38:55
TriSec on 10/06/2010 13:38:55
Oh, dear. Finally got to the Bozo and Witch segment on KO.
Comment by Raine on 10/06/2010 13:40:45
I was waiting for you to figure it out. I posted that story yesterday on the blog.
Raine on 10/06/2010 13:40:45
Quote by TriSec:
Oh, dear. Finally got to the Bozo and Witch segment on KO.
I was waiting for you to figure it out. I posted that story yesterday on the blog.
Comment by Raine on 10/06/2010 13:47:35
Raine on 10/06/2010 13:47:35
This is funny.
Joe and Tim,
Hold off on any letter for Joe. Sarah put her ass on the line for Joe and yet he can't answer a simple question " is Sarah Palin Qualified to be President". I DON'T KNOW IF SHE IS.
Joe, please explain how this endorsement stuff works, is it to be completely one sided.
Sarah spent all morning working on a Face book post for Joe, she won't use it, not now.
Put yourself in her shoe's Joe for one day.
Todd
Sent via BlackBerry by AT&T
Comment by Raine on 10/06/2010 13:59:54
Raine on 10/06/2010 13:59:54
Chris is right -- this is FREAKY.
Separated At Birth? A Young Carl Paladino And Dan Abrams
Separated At Birth? A Young Carl Paladino And Dan Abrams
Comment by 
Scoopster on 10/06/2010 14:00:45
Scoopster on 10/06/2010 14:00:45
Morning all! 
Water heater died last night.. so the only shower I've had since yesterday has come from this perpetual cold rain.
Water heater died last night.. so the only shower I've had since yesterday has come from this perpetual cold rain.
Comment by wickedpam on 10/06/2010 14:02:38
bbbrrrrr
wickedpam on 10/06/2010 14:02:38
Quote by Scoopster:
Morning all!
Water heater died last night.. so the only shower I've had since yesterday has come from this perpetual cold rain.
bbbrrrrr
Comment by TriSec on 10/06/2010 14:05:49
*snifffffffffffffffffff*.
We know.
TriSec on 10/06/2010 14:05:49
Quote by Scoopster:
Morning all!
Water heater died last night.. so the only shower I've had since yesterday has come from this perpetual cold rain.
*snifffffffffffffffffff*.
We know.
Comment by 
BobR on 10/06/2010 14:06:50
Whatever happened to Dan Abrams? Did he get back behind the camera where he belongs?
BobR on 10/06/2010 14:06:50
Quote by Raine:
Chris is right -- this is FREAKY.
Separated At Birth? A Young Carl Paladino And Dan Abrams
Whatever happened to Dan Abrams? Did he get back behind the camera where he belongs?
Comment by TriSec on 10/06/2010 14:24:20
TriSec on 10/06/2010 14:24:20
Hitting that last 24 hours of working in the City. It's all quiet...manuals have been written, loose ends tied up, and documents are filed.
Even the daily production has been smooth...I expect to wrap that up in an hour or two, then I can spend the rest of the afternoon reading the news and perusing the websites for MRSI. (Really, what can Cole-Hersee do about it now?)
However, I already know going in that MRSI "blocks all non-employment related websites". We'll have to see how extensive that is.
Even the daily production has been smooth...I expect to wrap that up in an hour or two, then I can spend the rest of the afternoon reading the news and perusing the websites for MRSI. (Really, what can Cole-Hersee do about it now?)
However, I already know going in that MRSI "blocks all non-employment related websites". We'll have to see how extensive that is.
Comment by TriSec on 10/06/2010 14:43:10
TriSec on 10/06/2010 14:43:10
Listening to TRMS on "The Great Republican Hunt".
Ya know, I was just a piddling little candidate for School Committee, but I would talk to anyone that would listen to me. Did the Waltham News Tribune, WCAC (local cable), and went to several Democratic and Republican City Committee events.
Way to get elected, witch!
Can we press her to death with large rocks now, since she refuses to testify one way or the other?
Ya know, I was just a piddling little candidate for School Committee, but I would talk to anyone that would listen to me. Did the Waltham News Tribune, WCAC (local cable), and went to several Democratic and Republican City Committee events.
Way to get elected, witch!
Can we press her to death with large rocks now, since she refuses to testify one way or the other?
Comment by TriSec on 10/06/2010 14:47:50
TriSec on 10/06/2010 14:47:50
What do we all think of the "smoke-filled room" news about Hilary getting promoted to Veep in 2012, and Biden going to SecDef?
I didn't support Hilary in 2008 because I thought we had enough of anyone named "Bush" or "Clinton". It will be very hard for me to vote for Obama again if this comes to pass.
I didn't support Hilary in 2008 because I thought we had enough of anyone named "Bush" or "Clinton". It will be very hard for me to vote for Obama again if this comes to pass.
Comment by Raine on 10/06/2010 15:09:18
I have been hearing this rumbling --
this is coming from Woodward who happens to be on a book selling tour.
A few things.
1) the White house denies it.
2) I think this is coming from anon sources in the defense department -- Funny that it's happening 3 weeks before the elections-- perfect timing to get everyone all in a tizzy.
3) It's almost unheard of -- Biden is doing a fine Job - as is Clinton. There is NO reason for this to be floated at this time of year unless people are trying to deflect from the fact that Dems are actually making inroads in the polls as November 2 gets closer.
Don't let this be a distraction. Remember "operation chaos'? - they want Democrats to start taking sides between Biden and Clinton - attacking the less preferred of the two.
Raine on 10/06/2010 15:09:18
Quote by TriSec:
What do we all think of the "smoke-filled room" news about Hilary getting promoted to Veep in 2012, and Biden going to SecDef?
I didn't support Hilary in 2008 because I thought we had enough of anyone named "Bush" or "Clinton". It will be very hard for me to vote for Obama again if this comes to pass.
I have been hearing this rumbling --
this is coming from Woodward who happens to be on a book selling tour.
A few things.
1) the White house denies it.
2) I think this is coming from anon sources in the defense department -- Funny that it's happening 3 weeks before the elections-- perfect timing to get everyone all in a tizzy.
3) It's almost unheard of -- Biden is doing a fine Job - as is Clinton. There is NO reason for this to be floated at this time of year unless people are trying to deflect from the fact that Dems are actually making inroads in the polls as November 2 gets closer.
Don't let this be a distraction. Remember "operation chaos'? - they want Democrats to start taking sides between Biden and Clinton - attacking the less preferred of the two.
Comment by wickedpam on 10/06/2010 15:09:34
if it comes to pass I'm actually fine with it really, Hillary was my choice after the layered disappointmen that was Edwards. I think they are both really smart people and can handle the jobs with brilliance.
wickedpam on 10/06/2010 15:09:34
Quote by TriSec:
What do we all think of the "smoke-filled room" news about Hilary getting promoted to Veep in 2012, and Biden going to SecDef?
I didn't support Hilary in 2008 because I thought we had enough of anyone named "Bush" or "Clinton". It will be very hard for me to vote for Obama again if this comes to pass.
if it comes to pass I'm actually fine with it really, Hillary was my choice after the layered disappointmen that was Edwards. I think they are both really smart people and can handle the jobs with brilliance.
Comment by Raine on 10/06/2010 15:24:26
Raine on 10/06/2010 15:24:26
SO have you heard of MSNBC's marketing campaign? Not sure how I feel about it.
Contessa Brewer just posted this:
Contessa Brewer just posted this:
Comment by BobR on 10/06/2010 15:31:36
I think it's a bullshit story. Not buying this for a minute...
BobR on 10/06/2010 15:31:36
Quote by TriSec:
What do we all think of the "smoke-filled room" news about Hilary getting promoted to Veep in 2012, and Biden going to SecDef?
I didn't support Hilary in 2008 because I thought we had enough of anyone named "Bush" or "Clinton". It will be very hard for me to vote for Obama again if this comes to pass.
I think it's a bullshit story. Not buying this for a minute...
Comment by Raine on 10/06/2010 15:32:22
Raine on 10/06/2010 15:32:22
Todd wasn't just in a huff -- he is fairly illiterate. (I posted the text of the email earlier this morning.)
Comment by Raine on 10/06/2010 15:33:28
Woodward is saying it's Hillary's advisors-- those are the un-named sources. I smell Puma crap.
Raine on 10/06/2010 15:33:28
Quote by BobR:Quote by TriSec:
What do we all think of the "smoke-filled room" news about Hilary getting promoted to Veep in 2012, and Biden going to SecDef?
I didn't support Hilary in 2008 because I thought we had enough of anyone named "Bush" or "Clinton". It will be very hard for me to vote for Obama again if this comes to pass.
I think it's a bullshit story. Not buying this for a minute...
Woodward is saying it's Hillary's advisors-- those are the un-named sources. I smell Puma crap.
Comment by TriSec on 10/06/2010 15:46:58
TriSec on 10/06/2010 15:46:58
I've been looking through some of the new software I'll need starting Monday. Some old friends like Availity and Emdeon, and a competing Practice Management Software called "Allscripts". Sounds a little more savvy than ol' athenahealth, If I say so myself. I'm a liking that "major competitor" aspect already.
Comment by TriSec on 10/06/2010 15:59:45
I said "lunch", not "launch"!!!!
< Far Out Space Nuts >
TriSec on 10/06/2010 15:59:45
I said "lunch", not "launch"!!!!
< Far Out Space Nuts >
Comment by 
livingonli on 10/06/2010 16:03:35
livingonli on 10/06/2010 16:03:35
Good day everyone.
Went to bed late so it took me forever to get out of bed again. Usual story of my life.
Went to bed late so it took me forever to get out of bed again. Usual story of my life.
Comment by wickedpam on 10/06/2010 16:38:41
wickedpam on 10/06/2010 16:38:41
can't stop 
Comment by Scoopster on 10/06/2010 16:44:00
Hey wasn't that lunch/launch thing in the opening of a TV show back in the 80s?
Scoopster on 10/06/2010 16:44:00
Quote by TriSec:
I said "lunch", not "launch"!!!!
< Far Out Space Nuts >
Hey wasn't that lunch/launch thing in the opening of a TV show back in the 80s?
Comment by wickedpam on 10/06/2010 16:44:27
wickedpam on 10/06/2010 16:44:27
Thom's depressing me again.....
Comment by livingonli on 10/06/2010 17:27:36
Actually, that show was from the 70's.
livingonli on 10/06/2010 17:27:36
Quote by Scoopster:Quote by TriSec:
I said "lunch", not "launch"!!!!
< Far Out Space Nuts >
Hey wasn't that lunch/launch thing in the opening of a TV show back in the 80s?
Actually, that show was from the 70's.
Comment by TriSec on 10/06/2010 17:53:44
TriSec on 10/06/2010 17:53:44
Has there been any news about the Westboro Bastards yet? Last I knew, the Snyder case was before the Supremes today.
(I checked the usual places - nothing on the wires)
(I checked the usual places - nothing on the wires)
Comment by BobR on 10/06/2010 18:10:07
haven't heard anything yet...
BobR on 10/06/2010 18:10:07
Quote by TriSec:
Has there been any news about the Westboro Bastards yet? Last I knew, the Snyder case was before the Supremes today.
(I checked the usual places - nothing on the wires)
haven't heard anything yet...
Comment by Raine on 10/06/2010 18:31:15
I turned it on when he was talking to another conservative --
I am going back to listening to WTOP.
Raine on 10/06/2010 18:31:15
Quote by wickedpam:
Thom's depressing me again.....
I am going back to listening to WTOP.
Comment by Raine on 10/06/2010 18:34:59
Raine on 10/06/2010 18:34:59
Comment by Raine on 10/06/2010 19:14:32
Raine on 10/06/2010 19:14:32
GRUMBLE listening to Randi and dammit -- Glenn BEck actually defended the fire department that let the house burn down.
listening to Randi and dammit -- Glenn BEck actually defended the fire department that let the house burn down.
Comment by Scoopster on 10/06/2010 20:21:31
Have I got a pic for you!
http://i.imgur.com/BgN6F.jpg
Scoopster on 10/06/2010 20:21:31
Quote by BobR:
FYI, when you start seeing these pop up all over...
Have I got a pic for you!
http://i.imgur.com/BgN6F.jpg
Comment by livingonli on 10/06/2010 20:52:26
livingonli on 10/06/2010 20:52:26
Listening to Randi arguing with right-wingers and just hearing how dense they are just makes me more and more sick of them for their stupidity and support of these backwards causes.
Comment by BobR on 10/06/2010 21:24:32
BobR on 10/06/2010 21:24:32
Comment by Scoopster on 10/06/2010 22:51:05
Oooh ok.. basically this dude said "I don't want a third of my paycheck going to handouts" so i replied..
Scoopster on 10/06/2010 22:51:05
Quote by BobR:Quote by Scoopster:
When I go on a rant.. I really go on a rant.
I can't read this...
Oooh ok.. basically this dude said "I don't want a third of my paycheck going to handouts" so i replied..
Do you consider Social Security and Medicare a "handout"? How about schools, roads and bridges? Police? Firemen? Unemployment insurance or welfare, should you ever happen to lose your job and have to feed a family? Testing th...e food you eat to make sure it's not crawling with disease? Coast Guard, TSA and Border Patrol agents? These are not handouts - these are NECESSITIES OF MODERN SOCIETY.
This country is built and supported every single day with what the GOP and its tea party base goons consider "handouts". I don't see them complaining at all about the REAL wastes of money - unnecessary tax cuts and subsidies for corporate and individual multi-millionaires/billionaires and wars. They would deny one of their own without blinking an eye the right to go to have an operation that would drive them to poverty, would allow greedy misers with inherited wealth be allowed to keep and increase such wealth without doing a minute of true work, and corporations to screw honest people out of the dream of owning land and a home with a labyrinth of deliberately-skewed mortgage contracts. Fixing these things is not about handouts - it's about HONESTY and FAIRNESS and preventing the CONCENTRATION OF THE ENTIRE COUNTRY'S WEALTH IN THE HANDS OF A FEW.
Comment by Scoopster on 10/06/2010 22:54:30
Scoopster on 10/06/2010 22:54:30