Building bridges and roads is a 21st century economy?

Back to the future is what Obama is talking about. How many more roads and bridges do we need? What are we doing with the billions of dollars already targeted for roads and transportation infrastructure with our gas tax dollars? Building roads and bridges we are told. So how will “creating” makeshift work take us into the “new economy”?

Obama is old ideas in a new suit. He has no understanding of economics which I argued often before his election. Here is today’s simple economics lesson:

Obama takes $10,000 from each productive family to build new roads and bridges. He claims this creates jobs and puts people back to work. He is building a 21st century economy through this program. Let’s analyze this promise.

First; what makes Obama’s plan the right plan for the $10,000? Obama believes we should build roads and bridges. If we really needed more roads and bridges would we have not built them? If they were needed to improve our economy they would have been built. Look around your region; when the last time you said, “honey, I think we need a bridge right here. Or honey, I wish we had another road right there”?

That 10K in my family might go for a down payment on a needed car, or put into the kids college fund, or a new computer, or maybe a well deserved vacation, a new roof on the house is a possibility. My needs are real needs that I choose to pay for. The money I spend will be spent on things that bring a value to me, and will keep the people providing these services employed. What would you spend 10K on? I bet a road or bridge is not on your top 10 list.

How many jobs will be created building bridges to nowhere? And all of that money that was taken from my family, and yours, to build these bridges to nowhere will not add one iota of value for our families. And the families that would have prospered from our spending of the 10K will not realize that money either because Obama took money out of the market and put it into this government program. Again I ask; why should the government choose the priorities for our families needs?

How is pouring concrete and paving roads 21st century work? I don’t design bridges, most Americans don’t. So while these people pour concrete and government pours money into programs they deem useful, the money I would have spent on real valued products and services gets poured down the drain as far as I’m concerned (and most Americans).

If Obama understood economics he would immediately suspend the capital gains tax for 3 years. Promise to reduce government spending by 25% over the next 3 years. Reduce the regulations to drill for oil in our country, reduce the regulations to build refineries and nuclear power plants for the private sector. That would get the market’s attention. Investors would invest in the things that will bring the most return in the next 3 years, which will create jobs that are needed. And if roads and bridges are needed people will invest but my guess is that the money will go to more valued services like refineries, and oil drilling, computer upgrades, and new cars, and education, and iPods, and G phones, and savings that will get invested.

Government infrastructure investment never worked. It never can replace real investment in real market needs. Just take an economics course and you will see. Obama’s program is so passé and has a history of failure… So why are we doing it again?