The United States has a gap between the infrastructure we have and the one we need if we are to grow our economy and remain a dominant strategic power. China spends 4.8% of gdp on infrastructure. The US spends 2.3%.* Infrastructure includes roads, railroads, seaports, inland investments, energy, etc. Most infrastructure is paid for by taxes or use fees – like bridge tolls.
How do we close the gap? Perhaps, by increasing taxes to pay for the improvements we need. Yes, we would all like to pay lower taxes. And we all think the government could be 5% more efficient, but that won’t fill the gap. Cutting big spending programs sounds great. Health care including medicare is 24% of spending, then social security 21%, then defense 13%. Which one do you want to cut? Interest on the debt is already 10%, so we don’t want to raise that.
Consider, most wealth that has been created in the last 10 years has gone to the the top 10%. Just look at who is getting the benefit of the Wall street gains.** Those of us who have money to invest are making huge returns on our investments. Hasn’t it been fabulous? For everyone else, those without earnings to invest – not so much.
Many folks with a lot of assets are trying to pass money to their heirs, thinking the inheritance taxes may increase soon, but without improvements in infrastructure, their heirs are going to be living in a highly dysfunctional environment. We need to do something about it now.
Maybe there is another way to get the investment that is needed someway other than raising taxes. Perhaps, there could be incentives for infrastructure investment far beyond solar credits. However, it seems like the fastest, simplest and most likely way to get the infrastructure updated is if the Federal government drives it. And, it has to be paid for somehow…..
*Worldpopulationreview.com
**