Warm Southern Breeze

"… there is no such thing as nothing."

Posts Tagged ‘spending’

To Reboot the Economy, $pend on Economic Infrastructure!

Posted by Warm Southern Breeze on Sunday, June 7, 2020

This is nothing new, per se.

The American Society of Civil Engineers has been saying this for quite some time, as well, which is that throughout America – coast-to-coast – we need to repair, enhance, and expand American economic infrastructure.

And, I’ve been saying that what we TRULY need to reinvigorate the economy since the onset of economic woes via the novel coronavirus, aka COVID-19, began to take its toll on our nation’s economy, is a wholesale reinvestment – top to bottom – in a repair, and expansion of our nation’s economic infrastructure.

While the “bailouts” for the individual citizens was good, and some of the Paycheck Protection Program for small businesses was also good, we STILL need to do MUCH, MUCH MORE!

And there’s something else which – of necessity – must be done. And that is, to CHANGE the Income Tax structure for ALL Americans, to expand and increase the Personal and Corporate Income Tax brackets (which since about 1980 has been compressed and reduced, so that now, the net effect is a flat tax), and to increase the rates upon the rich, wealthy, and well-to-do, and to lower, or eliminate them upon the impoverished, and disabled. And that includes ELIMINATING the Income Taxes Reagan imposed upon Social Security, and the “Paris Hilton Tax Cuts.”

Such a measure WILL “pay for itself” through enhanced, and expanded economic capability and capacity, and will prepare America for the next 50 or more years.

Oh!

And one more thing.

In 2016, the ASCE published a document titled “Failure to Act: Closing the Infrastructure Investment Gap for America’s Economic Future,” which stated in part the following:

“The cost of deteriorating infrastructure takes a toll on families’ disposable household income and impacts the quality and quantity of jobs in the U.S. economy. With deteriorating infrastructure, higher business costs will be incurred in terms of charges for services and efficiency, which will lead to higher costs incurred by households for goods and services due to the rising prices passed on by businesses.

“As a consequence, U.S. businesses will be more inefficient. As costs rise, business productivity falls, causing GDP to drop, cutting employment, and ultimately reducing personal income.

“From 2016 to 2025, each household will lose $3,400 each year in disposable income due to infrastructure deficiencies; and if not addressed, the loss will grow to an average of $5,100 annually from 2026 to 2040, resulting in cumulative losses up to almost $34,000 per household from 2016 to 2025 and almost $111,000 from 2016 to 2040 (all dollars in 2015 value).

“Over time, these impacts will also affect businesses’ ability to provide well-paying jobs, further reducing incomes. If this investment gap is not addressed throughout the nation’s infrastructure sectors by 2025, the economy is expected to lose almost $4 trillion in GDP, resulting in a loss of 2.5 million jobs in 2025.

“Moreover, workers who are employed will earn lower wages, and in the long term, many higher paying jobs in technology and other leading sectors will be replaced by jobs that fulfill needs brought on by the inefficiencies of deteriorating infrastructure.

“Closing each infrastructure investment gap is possible, and the economic consequences caused by these gaps are avoidable with investment.”

You can read that, and other entries associated with economic infrastructure, on this site by searching for the term “economic infrastructure.”

A final, parting thought:

We aren’t out of the woods yet… not by a long shot. Such economic prognostication is shared by many within, and without various universities, educational institutions, economic think-tanks, governmental, and non-governmental agencies throughout this, and other nations. And economic infrastructure spending would be like putting the country on a defibrillator, and giving it steroids, all at the same time.

The Chinese have.


Rebuild the Stalled Economy With Infrastructure Investment

By Scott Paul
Scott Paul is president of the Alliance for American Manufacturing.

There are two discussion topics that federal policymakers should be having right now: relief and recovery. Relief, for the estimated 40 million people this pandemic has put out of work as well as the millions of others impacted by the steps taken to slow its spread. Recovery, for the day when it’s safe to return to work but the demand for goods and services is still missing.

Some economists predict many jobs will simply disappear as industries use this moment to reorganize, compounding the economic crisis our nation faces.

But, as we all know, this isn’t the first time we’ve faced an economic crisis. In the 1932 presidential election, Franklin D. Roosevelt decisively beat President Hoover because of the latter’s inability to revive the economy in the early years of the Great Depression. Democrats eschewed Hoover’s volunteerism and leveraged the power of government to spur an economic revival, passing a landmark domestic preference bill that the lame duck president signed – the Buy American Act of 1933 – and then cleared the way as FDR expanded the federal response to the crisis.

The banking system was reorganized. Labor protections were established in exchange for regulating industrial production levels and price coordination. Farms were Read the rest of this entry »

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Government Spending

Posted by Warm Southern Breeze on Wednesday, April 24, 2019

About that “government spending” thing being a boost to the economy:

Yes, it’s true. We found that out early on, which was how our nation recovered from the Great Depression.

So… here’s the spending we need now (no, it’s not the “Green New Deal”) – INFRASTRUCTURE!!

Oh, and EVERY red cent that “we the people” spend through our government comes from the Private Sector.

Every material – raw or finished – and all manpower comes from the Private Sector; and only after public notices via competitive open (public) bidding.

Yeah. Think about that one for a while.

There is NO “government factory” in our nation. Never has been, never will be.

So, yeah… every four years, the American Society of Civil Engineers rates the overall quality of American economic infrastructure “in the familiar form of a school report card—assigning letter grades based on the physical condition and needed investments for improvement.”

In 2017, American Economic Infrastructure’s quality was graded as Read the rest of this entry »

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GAO Report: Pentagon spending out of control – Rumsfeld reported same in 2001

Posted by Warm Southern Breeze on Monday, May 27, 2013

What does Senator Sessions think about the March 2012 Government Accountability Office report to Congress that found the 96 highest-priority defense programs in the Pentagon acquisitions system represented an estimated total cost of $1.58 trillion, and had actually “grown by over $74 billion or 5 percent in the past year”?

The report, entitled DEFENSE ACQUISITIONS: Assessments of Selected Weapon Programs – may be downloaded from the GAO website: http://www.gao.gov/assets/590/589695.pdf

Or from this blog: GAO 3/12 report – DEFENSE ACQUISITIONS Assessments of Selected Weapon Programs

And then, there are the Remarks as Delivered by Secretary of Defense Donald H. Rumsfeld, The Pentagon , Monday, September 10, 2001 entitled DOD Acquisition and Logistics Excellence Week Kickoff—Bureaucracy to Battlefield, in which he said “According to some estimates, we cannot track $2.3 trillion in transactions.”

How many variety of voices over an extended period of time do we need before we heed their warnings?

His speech, in it’s entirety follows. Read the rest of this entry »

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Suicide, Libertarianism, and Religion -or- Why “No man is an island.”

Posted by Warm Southern Breeze on Monday, April 15, 2013

FACT:
Las Vegas has the highest metropolitan suicide rate in the U.S.

“I’ll add that there’s one more feature here, of Las Vegas, which I think bears mentioning. And that is what I kinda’ think of as a sort of “frontier culture” mentality among residents, and I think, even among visitors.

“That Las Vegas is this sort of place of place of total license. You know… its the ‘Wild West,’ it’s an open frontier for all kinds of immorality and exploration of vice, and… the entire self-branding of Las Vegas as this place where that is not only tolerated, but actually sanctioned.

“You know, the “What happens in Vegas stays in Vegas” kind of mentality – produces, I think, a kind of… sort of libertarian ethos of ‘go it alone, do it yourself.’ And help seeking in this sort of framework is perhaps not accepted or valorized the way it is other parts of the country.

“These kind of cultural arguments are always very hard to make. They always sound deeply unscientific. But, in a lot ways, I think that’s exactly where a lot of the explanatory power comes from… is in this understanding the culture and values underlying people’s behavioral sense.”

Matt Wray, sociologist, Temple University, Philadelphia, PA, and co-author of a 2008 paper entitled Leaving Las Vegas: Exposure to Las Vegas and Risk of Suicide” / excerpted from Freakonomics Radio, episode #92 “Gambling With Your Life,” released April 27, 2011

Of late, attention has been increasingly given to the suicide rate of veterans returning home from the horrors of war in the Middle East, specifically, from their numerous extended tours of duty in Iraq and Afghanistan.

While in retrospect, many acknowledge that Read the rest of this entry »

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Federal Reserve’s “Beige Book” shows improving economy

Posted by Warm Southern Breeze on Thursday, January 17, 2013

The Federal Reserve regularly publishes a summary of economic activity in the 12 Federal Reserve Districts in the United States.

It is important to note that “This document summarizes comments received from businesses and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials.”

Much, if not most of the news was promising.

Summary highlights from this Beige Book 2013-01-16 are that:

• “Reports from the twelve Federal Reserve Districts indicated that economic activity has expanded since the previous Beige Book report, with all twelve Districts characterizing the pace of growth as either modest or moderate.”

• “All twelve districts reported some growth in Read the rest of this entry »

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Could the Price of Milk go to $13 per gallon? If the “Fiscal Cliff” is not avoided, yes.

Posted by Warm Southern Breeze on Monday, December 31, 2012

This Do-Nothing Congress is, without question, the absolutely WORST Congress EVER!

More filibustering & taxes, less law-making, less-governance.

That must be what they mean when they talk about “smaller government,” or “less laws.”

Farm-State Lawmakers Back Plan to Avoid ‘Dairy Cliff’ Price Jump

By Alan Bjerga & Derek Wallbank – Dec 31, 2012 12:01 AM ET

House Agriculture Committee Chairman Frank Lucas and Senate Agriculture Committee Chairman Debbie Stabenow are backing a short-term extension of a farm law that lapsed Sept. 30 as the Obama administration warns that without congressional action, retail milk prices could almost double.

“I would hope that as soon as is humanly possible, a decision will be made to allow us to take action” on the extension, Lucas told reporters off the House floor. “We need to take positive action, put this issue to rest, and make sure that it is clear to everybody in this country that the farm bill policy has certainty and that we will not have $8 or $9 milk.”

The proposal is one of three farm-related draft bills released over the weekend in the House of Representatives; all of them would stave off the potential jump in consumer milk prices should government commodity programs begin to lapse tomorrow. Photographer: Scott Olson/Getty Images

The proposal is one of three farm-related draft bills released over the weekend in the House of Representatives; all of them would stave off the potential jump in consumer milk prices should government commodity programs begin to lapse tomorrow. Photographer: Scott Olson/Getty Images

The proposal is one of three farm-related draft bills released over the weekend in the House of Representatives; all of them would stave off the potential jump in consumer milk prices should government commodity programs begin to lapse tomorrow. Photographer: Scott Olson/Getty Images

The draft bill would extend current law, along with disaster aid for producers affected by this year’s U.S. drought and changes to current milk policy, through Sept. 30. It would reduce mandatory outlays by $30 million through fiscal 2022, according to the Congressional Budget Office. The bulk of the spending would come in the first year, and as such it would actually increase spending by an estimated $555 million through fiscal 2017.

Other Bills

The proposal is one of three farm-related draft bills released over the weekend in the House of Representatives; all of them would stave off the potential jump in consumer milk prices should government commodity programs begin to lapse tomorrow.

The second measure would extend most of the current law through Jan. 31, and the third would protect only against possible dairy-price spikes. Those two are opposed by House and Senate Democratic agriculture leaders. Representative Collin Peterson of Minnesota, the top Democrat on the House Agriculture Committee, called a 30-day extension a “poor joke on farmers that offers no certainty.”

The most recent farm law, enacted in 2008, expired after attempts to pass a new five-year proposal failed. Without that plan, agricultural programs automatically return to rules passed in 1949, the basis of all subsequent legislation.

The effects of that transition have been delayed because of the growing seasons of different crops. Dairy production, a year-round business, is the first major commodity affected. In November, the U.S. Department of Agriculture Read the rest of this entry »

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How to End This Depression

Posted by Warm Southern Breeze on Sunday, July 29, 2012

It’s been said that ‘everything should be made as simple as possible, but not simpler.’

The distinguished Dr. Krugman – who accurately foretold in 2001 that the “Bush Tax Cuts” would create significant deficit (and they did) – understands the role of government in providing opportunity for entrepreneurs and private enterprise, and the equally important role that government has in responsibility to protect public health and safety.

The long and short of it is this: Government spending on economic infrastructure (including education) is a good investment because it yields significant immediate and long-term results.

Why?

Because Materials and Manpower ALWAYS come from the private sector.

Regular readers of this blog will be familiar with the aforementioned premise, and the numerous times about which I have written in detail about the same. This entry illustrates with three excellent examples of that principle.

Naysayers and critics miss one very important factor in their analogy, which is that the Federal government has the power and authority to print money. The way that factor relates to the issue at hand is this: While the government could – in theory, and in reality – print enough money to give $10,000 to every man, woman and child in this nation the net effect of so doing would be to devalue the money, which would be resulting from inflation.

How to correct, resolve or work within the guidelines of that factor is to understand that one very important role of government is to provide OPPORTUNITY for entrepreneurs and private enterprise. By providing opportunity, government is also encouraging private enterprise and entrepreneurship. And, for the strict Constitutionalists, courts have continued to uphold and acknowledge that such power is contained within the Preamble’s clause “to promote the general welfare.”

Further, for the “anti-Big Government” naysayers, it is preposterous (contrary to reason or common sense; utterly absurd or ridiculous) to imagine that, in this era, with every technological advance, invention and discovery which has been made since 1776, and with our population (now approaching 312,000,000), that we would have fewer laws, rules and regulations than when we first began.

And, for those who say we should balance our budget, I would agree. However, I hasten to point out, that the last time that was done was under Eisenhower and LBJ. That does not excuse us from an ongoing civil discussion and debate about how to effectively manage our nation’s budget. Perhaps a formula of some type which would take into account GDP, debt (outstanding Treasury notes), trade deficit, population growth, birth rate, and other factors – with an “escape” mechanism for times of civil emergency or war, of course.

For such, we need technocrats – experts in areas of operations – rather than bureaucrats. Perhaps in an advisory role. But then again, we have those.

So… why don’t we work together as we ought?

Politics.

It seems that “Everybody’s got something to hide except for me and my monkey.”

How to End This Depression

May 24, 2012

Paul Krugman

The depression we’re in is essentially gratuitous: we don’t need to be suffering so much pain and destroying so many lives. We could end it both more easily and more quickly than anyone imagines—anyone, that is, except those who have actually studied the economics of depressed economies and the historical evidence on how policies work in such economies.
Obama in Master Lock factory Milwaukee

President Obama on a tour of the Master Lockfactory in Milwaukee with the company’s senior vice-president, Bon Rice, February 2012; Susan Walsh/AP Images

The truth is that recovery would be almost ridiculously easy to achieve: all we need is to reverse the austerity policies of the past couple of years and temporarily boost spending. Never mind all the talk of how we have a long-run problem that can’t have a short-run solution—this may sound sophisticated, but it isn’t. With a boost in spending, we could be back to more or less full employment faster than anyone imagines.

But don’t we have to worry about long-run budget deficits? Keynes wrote that “the boom, not the slump, is the time for austerity.” Now, as I argue in my forthcoming book*—and show later in the data discussed in this article—is the time for the government to spend more until the private sector is ready to carry the economy forward again. At that point, the US would be in a far better position to deal with deficits, entitlements, and the costs of financing them.

Meanwhile, the strong measures that would all go a long way toward lifting us out of this depression should include, among other policies, increased federal aid to state and local governments, which would restore the jobs of many public employees; a more aggressive approach by the Federal Reserve to quantitative easing (that is, purchasing bonds in an attempt to reduce long-term interest rates); and less timid efforts by the Obama administration to reduce homeowner debt.

But some readers will wonder, isn’t a recovery program along the lines I’ve described just out of the question as a political matter? And isn’t advocating such a program a waste of time? My answers to these two questions are: not necessarily, and definitely not. The chances of a real turn in policy, away from the austerity mania of the last few years and toward a renewed focus on job creation, are much better than conventional wisdom would have you believe. And recent experience also teaches us a crucial political lesson: Read the rest of this entry »

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More evidence that Government $pending boo$t$ economy

Posted by Warm Southern Breeze on Thursday, July 26, 2012

Recollect the brouhaha over Vice President Joe Biden‘s remark Thursday, July 16, 2009 in Alexandria, Virginia?

He was speaking at an AARP-sponsored town hall meeting also attended by AARP CEO A. Barry Rand, Health and Human Services Secretary Kathleen Sebelius and Nancy Ann DeParle, Director of the White House Office of Health Reform.

Vice President Biden said, “Now people, when I say that, look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’ The answer is ‘yes,’ that’s what I’m telling you.”

{ref: http://cnsnews.com/node/51162}

“And folks look, AARP knows – and the people with me here today know, the president knows, and I know – that the status quo is simply not acceptable. Its totally unacceptable. And its completely unsustainable. Even if we wanted to keep it the way we have it now. It can’t do it financially, Were going to go bankrupt as a nation. Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’ The answer is ‘yes,’ I’m telling you.”

Of course, Vice President Biden was speaking in context of the Affordable Care Act – also commonly known as “ObamaCare” – which the Government Accountability Office has shown has already demonstrated significant cost savings and proven to be business-stimulating legislation, and that to eliminate it’s protections would cost the federal government even more in the long-term.

Analogously, it’d be like having a fuel inefficient automobile – one that only got about 5 miles/gallon, or less. If you were to purchase even a used vehicle with twice the fuel economy – 10mpg – you could realize significant overall long-term savings. Simply ceasing driving will not solve any problem, but would rather create more problems.

Similarly, could you imagine having an inefficient Heating/Ventilation & Air Conditioning (HVAC) system? You gotta’ stay cool in the summer and warm in the winter – there’s no way around it. And to lower your average monthly utility bills by even 1/3 would be beneficial.

So, here’s a shocker for armchair philosophers, political pundits, amateur economists, Radical Republicans, TEA Party types and more: Government spending – in part – is a significant driver of our nation’s economy. And, spending on economic infrastructure is ALWAYS a most wise investment.

Why?

Because 1.) Materials and Manpower ALWAYS come from the PRIVATE SECTOR, and; Read the rest of this entry »

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Weather Extremes Not Just in United States

Posted by Warm Southern Breeze on Sunday, July 8, 2012

Here is Wisdom.

(Either that, or pragmatism.)

If there is nothing humans can to to lessen the severity or frequency of these, and other extreme weather events, then the very least that should be done is to significantly improve infrastructure to more effectively manage them, and to mitigate potential for damage.

And that is spelled I – N – F – R – A – S – T – R – U – C – T – U – R – E.

What’s “infrastructure”?

A definition of infrastructure from the New Oxford American Dictionary: “the basic physical and Read the rest of this entry »

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