Infrastructure Infrastructure Infrastructure

Robert Reich is a very smart man.  I have enjoyed and learned a lot from reading his blog. 

While this post is packed with insightful and interesting analysis, I think that his focus on the infrastructure aspect of Obama’s “Economic Recovery Plan” is especially pertinent. 

The American Society of Civil Engineers believes that $1.6 Trillion in infrastructure  investment is necessary to bring our infrastructure to a GOOD level.  The key implication there is that we currently have a BAD or at least non-good infrastructure.  This is very disturbing.  Especially since not $0.01 of the $700 billion TARP investment, or of the $25bn Auto bailout is going to investment, but just to maintain the status quo.  Now this is not necessarily an indictment of either of these programs, that can be done elsewhere.  But if it isn’t clear that we are faced with a fundamental structural crisis, then it should be. 

I think we would all prefer to see the private sector spearhead most of the necessary intervention.  Even liberals prefer private investment over public (if only to free gov’t up for other pursuits). But I think it is clear that the private sector is unwilling and, certainly in the short term, unable to make this investment.  This problem did not emerge overnight.  Eventually we will need to find a way to incentivize our private sector to tackling long term problems, but that time is not not, the need is too pressing to experiment. 

The question of whether the government needs to make this investment would seem to answer itself.  The key task for Obama will be how to spend this money.  Roads, Bridges, Mass Transit and clean water will be high on the list of course, but we need to do more than just patch up a 20th century system, we need to finally enter the 21st, and start preparing for the 22nd.  Universal Broadband, wireless networks, laptop initiatives, clean industry and sustainable models of living should all be on this list as well.  I think its critical that Obama view our current situation both as a challenge to overcome, but also an opportunity to grab.