President Obama to unveil infrastructure funding program

[babylonsister]

http://www.dailykos.com/story/2014/07/17/1314603/-President-Obama-to-unveil-infrastructure-funding-nbsp-program?detail=facebook#

Thu Jul 17, 2014 at 07:08 AM PDT
President Obama to unveil infrastructure funding program

by Joan McCarter


President Barack Obama views the new bridge under construction adjacent to the Tappan Zee Bridge after making remarks on infrastructure at the Washington Irving Boat Club in Tarrytown, N.Y., May 14, 2014.


Undaunted by bullshit Republican lawsuits over his executive actions, President Obama is announcing another one today, in an effort do so something about the nation's crumbling infrastructure. In fact, in its fact sheet on the initiative, the White House is making it very clear that Obama is using his executive authority.

The President’s visit and announcement today are a part of the Administration’s continued push to highlight the importance of investing in our nation’s infrastructure so that we can build on the progress our economy is making by creating jobs and expanding opportunity for all hardworking Americans. The steps announced today continue the momentum the President has made using his executive authority —his pen and phone—to invest in modernizing our infrastructure, including speeding up the permitting process for major infrastructure projects to create more jobs. […]

And while the President is encouraged that Congress is heeding these calls by taking action in the short-term to prevent transportation projects across the country from grinding to a halt, the President will continue to act on his own to promote American economic growth where there is need or opportunity. And right now, there is a real opportunity to put private capital to work in revitalizing U.S. infrastructure.

The House passed an $11 billion short-term funding bill for the depleted highway trust fund, a measure that the White House supports, but which fails to address the real scope of infrastructure problems. The White House initiative will "increase infrastructure investment and economic growth by engaging with state and local governments and private sector investors to encourage collaboration, expand the market for public-private partnerships (PPPs) and put federal credit programs to greater use." That includes a new investment center in the Department of Transportation that will serve as a "one-stop shop" for state and local governments trying to secure private loans to underwrite construction projects. The center will provide technical assistance to those governments trying to find federal and private credit programs and capital.

Obama is also creating an interagency working group jointly chaired by Transportation Secretary Anthony Foxx and Treasury Secretary Jack Lew, to conduct a review of what options the federal government has to "expand and increase private investment and collaboration in infrastructure." Maximizing private investment and partnerships is key, so the plan includes an infrastructure investment summit in September that will match institutional investors, developers, and local governments.

[factsarenotfair]

1. "...expand the market for public-private partnerships..."

I find that disturbing.

[babylonsister]

2. Why? I find it encouraging

that he's pushing for this. I imagine construction companies need to get involved. The gov't cannot commandeer this imo. But people will be hired, and that's fantastic.

[JaneyVee]

4. People will be hired, steel mills will be fired up,

Manufacturing will explode, even the local coffee shops and diners will notice a huge bump during workers breakfast and lunch breaks. So yes, govt spending most certainly does create jobs.

[factsarenotfair]

6. Well, it seems to me like it's privatization without the risk on the private side. n/t

[muriel_volestrangler]

8. It is a depressing move to the right; ask the UK about public-private partnerships

It may be just an indication that the refusal of the Republicans to do anything in Congress has defeated the president, and he's had to resort to allowing a cash cow for corporations, rather than being something he'd like to do, but it's still depressing.

The basic idea of a public-private partnership is that a private company borrows the money for the project, rather than the government. This, of course, is more expensive - companies can never borrow as cheaply as stable governments, and the US government is the most stable in the world, and can currently borrow at its cheapest rate ever. And then you have to add more on for the company's profit. What the government gets out of it is spending that doesn't show up on the public debt accounts. The government is still committed to paying for it all - paying more than it would have if it had borrowed the money itself - but it counts as a 'contract', rather than a 'debt'.

Look on it as the Republicans having successfully run an extortion racket on behalf of their clients in the private sector - in Britain it was mainly the banks that benefited (they form consortia with construction companies, and look after the finance side), but the construction sector did very well out of it - it typically involves getting well paid contracts to do the maintenance, which the government can never put out to tender again, however badly the companies do it.

Try asking in the DU United Kingdom forum about the wisdom of using PPP. It has about the same popularity as NAFTA does for American DUers.

[conservaphobe]

3. Gotta do what you can when the extremists are holding the government's purse hostage. nt

[pinto]

5. +1. A sorely needed step.

[Archae]

7. GOP: "Obama wants it, so we oppose it! To hell with jobs!"

3-2-1...

[sakabatou]

9. "Jobs, jobs, jobs!"

"But Obama's coming out with a plan to make jobs."

"NOPE NOPE NOPE!"