Here Comes Congress' Next Big Economic Crisis, And It Could Be Even Worse Than The Fiscal Cliff

BI ^ | 5-18-2014 | Brett LoGiurato

[blam]

Here Comes Congress' Next Big Economic Crisis, And It Could Be Even Worse Than The Fiscal Cliff

Brett LoGiurato
May 15, 2014, 10:51 AM

We survived the fiscal cliff and the government shutdown. But there's another big battle brewing this summer between Congress and the Obama administration with dire economic consequences that could cost the country hundreds of thousands of jobs.

And even though politicians on both sides of the aisle agree this disaster is "completely avoidable," all signs indicate we're on a collision course with crisis.

On Wednesday, President Barack Obama gave his first formal warning about this impending self-inflicted disaster — the Highway Trust Fund, a transportation and infrastructure fund financed by gasoline taxes, is set to run out by the end of the summer.

Thus far, Congress has not come up with a solution, and both sides are beginning to dig in. By July, thousands of projects and contracts could be put on hold amid the uncertainty — right in the middle of summer construction season. In one economic analysis released last week, the Obama administration warned 700,000 jobs tied to the fund and its uncertain future are at stake.

"Right now, there are more than 100,000 active projects paving roads and rebuilding bridges, modernizing our transit systems," Obama said Wednesday in remarks near the Tappan Zee Bridge in Tarrytown, New York, where a $3.9 billion effort to replace the current aging structure is underway.

"States might have to choose which ones to put the brake on. Some states are already starting to slow down work because they’re worried Congress won’t untangle the gridlock on time.

(snip)

[tumblindice]

Problem: one (1) prima donna on Pennsylvania Avenue and 535 Capitol Hill critters, all like Paris Hilton on Rodeo Drive, all with Dad’s platinum card.
What have they done since the last `fiscal crisis’?
They’ve borrowed more money from China and spent it.

[Avid Coug]

The Pacific Northwest cities are wasting massive amounts of transportation funds on bike paths, to the exclusion of expanding lanes for cars and trucks. The libs feel good about themselves when they do this, even though most of them don’t ride bikes. Mass transit and bikes for the little people. For the common good. Unless you are a Party elite.

[coldoc]

I seem to recall that in Bush’s first term (early 2000s) the issue of falling bridges, poor roads, etc. came up and the “fix” was to open the spigot from this fund. The previous administrations had been collecting and not spending any money on infrastructure. The fund was reported to be “Overflowing” at the time. I remember signs popping up all over the place touting this spending.

I suspect the truth of the matter is that the “overflowing” money pot was a bunch of IOUs (Treasury Certs.)like in the Social Security “Trust Fund”. Congress had already raided it! Now they don’t have income to cover the IOUs anymore.

I may be off-base here, but some how I doubt it....

[Chode]

100% spot on

[okie01]

The previous administrations had been collecting and not spending any money on infrastructure. The fund was reported to be “Overflowing” at the time. I remember signs popping up all over the place touting this spending.

The problems with the Federal Highway Trust Fund are:

1. A disproportionately high amount has been diverted to support of public transit (light rail, busses, etc.).

2. The porkers in Congress prefer to fund new projects (new bridges and highways, etc) rather than maintenance and repair. Makes for more ribbon-cutting opportunities.

3. Improved mpg and a stagnant economy have resulted in lower tax collections.

The solution, of course, is to use the fund for what it was originally designed to fund: first, maintenance and repair of the existing plant, then new highway projects as needed. Public transit should be funded separately...to the degree justified.

Which is a solution that will never happen...

[Wuli]

There are more than 6,000 bridges and tunnels on the American engineers “in need of critical repair” list and (1) the majority of them are in handful of states and (2) the majority of them are not mission critical to intra-state or interstate commerce, and so of what “national priority” ate most of them? None. Then what is the real problem? The real problem is the highway trust fund is used as a national slush fund that tries to allow states to NOT adopt highway and infrastructure priorities.

[cripplecreek]

Canada is willing to pay the full cost of building a new bridge across the Detroit river to east the trade bottleneck. (Its the second busiest freight crossing on the continent) We still need to pay $250 million for buying and razing buildings, customs plaza, and of ramps etc. Unfortunately Obama refuses to release the money without $100 million being given to union pension funds.

[Wuli]

again, the real issue is not vital and necessary infrastructure spending but priorities

for Congress the only priority is “what’s in it for my state politicians and for my buying votes back home” and for the state politicians the only priority is in “what’s in it for me” which includes “I need to tell the folks back home I’m not raising their state taxes I’m getting their federal reps to bring free gifts back from uncle sam”

the end result?? power shifts to washington d.c. and that is all that is accomplished

[cripplecreek]

I’m usually opposed to spending on things like new bridges but this is a case with an existing need unlike the cargo cult thinking that builds high speed rail.

Unfortunately our governor is one of those cargo cult thinkers who can’t let go of his dream to fund what we actually need.

[familyop]

So administrators and contract bosses sucked up all of the dough again, and many foreign nationals will cease receiving their temporary ghetto pay without benefits.

[familyop]

The real solution is to abolish pork (federal funding to state and local governments). That would make politics a whole lot quieter and more civil besides being more affordable.

[The_Media_never_lie]

Oh my gosh, we’re all going to die!

[broken_arrow1]

At Obama’s discretion, will DOT put up barricades to keep public off roads like Parks Service kept veterans away from Vietnam & WWII Memorials?