“Certainly, the need for infrastructure spending over and beyond what the federal government, states and localities already spend is oversold.
Infrastructure is obviously important, and building or repairing it can be a good investment, depending on the particulars. But enormous catch-all Washington infrastructure bills aren’t well suited to discerning, nonpoliticized investment decisions, and the endlessly repeated cliche about our “crumbling” infrastructure doesn’t hold up.
A recent paper for the National Bureau of Economic Research noted, “Over the past generation, the condition of the interstate highway network improved consistently, its extent increased modestly, and traffic about doubled. Over about the same time period, the condition of bridges remained about the same, the number of bridges increased slowly, and bridge traffic increased modestly. The stock of public transit motor buses is younger than it was a generation ago and about 30% larger, although ridership has been about constant.”
Shooting money out of a bazooka is not self-evidently what the state of America’s infrastructure calls for. But when the only tool you have is huge reconciliation spending bills, everything looks like a crisis urgently requiring more profligacy.
The bills are also a substitute for passing significant nonspending policy changes, which is seemingly beyond Biden’s power. Unlike FDR, Biden has narrow and tenuous congressional majorities. He’s not getting HR1, gun control, a higher minimum wage, or immigration reform, and perhaps couldn’t even if Senate Democrats eliminated the filibuster.
What he can do, which FDR and LBJ never could, is reach for the word “trillion” as much as possible.”