Infrastructure Funding

Much has been made about the deteriorating state of our nation’s infrastructure, from past todos that worked out to be just political chit-chat with nothing done to today’s efforts and commentary.

The commentary, as far as it goes, isn’t far wrong: our infrastructure, our roads, bridges, railroads, airports, even our communications infrastructure are in terrible shape.  But the commentary continues to be largely chit-chat, and the NLMSM isn’t helping.

Take this opening from a piece on President Donald Trump’s latest budget proposal from Fox News, for instance.

President Trump is calling to pump $1.5 trillion into fixing America’s infrastructure while streamlining the often-cumbersome permitting process, as part of a $4 trillion-plus budget plan unveiled Monday.

We’re going to spend 3/8 of our 2019 Federal budget on infrastructure, are we?  That’s the impression the author of this piece has chosen to give.

The truth of the matter, though, is buried deeper into the piece.

The infrastructure component, however, would not necessarily be a huge driver of Washington’s red ink.

Well, NSS.  It turns out the infrastructure spending component of Trump’s budget proposal is just $200 billion—just about 1/8 of those $1.5 trillion.  The Federal part of that spending is just seed money, with the States and local jurisdictions, and importantly, private enterprise, putting up the rest.

And that’s entirely appropriate.  While our national infrastructure benefits our nation as a whole—is critical to it, in fact—the vast majority of use and of benefit is local: it’s the States and local regions that get the first and the most of the benefit of a functioning and sound set of bridges, roads, airports, and so on.  Of course, then, it’s the States and locals who should front most of the money for infrastructure rehab.  After all, why should Illinois or Missouri, with their citizens’ tax dollars, contribute a whole lot to improving Iowa’s lousy highway system?  A bit, yes; some interstate commerce traffic into and out of Illinois and Missouri uses Iowa roads.  But far and away the bulk of Iowa highway traffic is intrastate.  It’s Iowans who are the largest users of Iowa roads.

There’s another reason to put the cost of improvement on the State and locals.  They’re the ones closest to the problem, and so they’re the ones with the most impact from regulations and permitting and other red tape; they’re the ones who can have the most impact on these impediments to improvements.  Private enterprises best know the surrounding regulatory and permit environment, and it’s private enterprise that will employ local workers.

Private Moves and Regulations

The Trump administration’s Bureau of Land Management is moving to rescind and replace an Obama administration regulation that would drastically limit methane gas emissions by companies drilling for hydrocarbons on Federal land.

While the move is salutary—the Obama regulation would have imposed too much cost, would have stunted energy innovation, and would have limited energy supply with resulting higher prices to us consumers—there’s one tidbit in the Wall Street Journal article carrying that news that needs emphasis.

Environmentalists rejected that claim [of impeding energy development] and decried the decision, pointing out that several companies had already moved on their own to start cutting methane emissions.

Because some in private industry think a move is a good idea, Government, says the Left, must get involved and require everyone to do the same thing.

And

Many oil-and-gas companies—including some of the world’s biggest—have been anticipating further rules to slow climate change and have decided to invest in better methane-capturing technology. They can recoup some of the investment and potentially add to profits by capturing more stray gas and selling it with the rest of their output.

Of course, they still will be able to with the new regulation in place.  Methane gas produced as a side effect of oil drilling or fracking still will be a marketable product, still will be competitive with coal, still will produce profit for the drillers and frackers.  This is innovation in a free market, something the Left and their environmentalists.

Bigger Budgets and Spending Cuts

Last week, Congress passed and President Donald Trump signed, a budget covering the next two years that has significantly larger spending caps than the last several budgets have had, including in particular a large increase in domestic spending.  Of course, that means spending must rise, right?  Every dollar budgeted must be spent; the budget is a spending floor, not a cap?

Not at all, as the budget proposal Trump has sent over to Congress for FY2019 demonstrates.

The Trump budget is proposing to reduce nondefense discretionary spending caps by 41% over the coming decade.

Cuts to domestic spending instead of spending every dollar budgeted.  Hmm….

Costs, and Costs

The fight to drive the Daesh out of Iraq (while killing too few of them IMNSHO) has caused more than $45 billion in infrastructure damage to Iraq.

That’s roughly half the cost of the damage a couple of hurricanes did in Texas and Florida last year, an even smaller ratio when Puerto Rico is figured in.  But it’s a lot of damage for a nation like Iraq.

What might that imply, besides the relative wealth of the two nations?

One is the relative dependence we have on our more highly developed, and so expensive, infrastructure compared to Iraq.  Iraq is scraping by with that level of damage and already beginning to recover.

If we suffered the same relative level of damage to our infrastructure, particularly our electric grid, how well would we fare?

Against Their Own Interest

Fast food workers began protesting yesterday, demanding higher wages and the right to join a union.  Ashley Cathey, a 29-year-old Memphis fast food person, had this:

Fast-food cooks and cashiers like me are fighting for higher pay and union rights, the same things striking sanitation workers fought for 50 years ago.  We’re not striking and marching just to commemorate what they did—we’re carrying their fight forward. And we won’t stop until everyone in this country can be paid $15 an hour and has the right to join a union.

The work they do isn’t worth $15 per hour.  They’re just looking to price themselves out of their jobs, to be replaced by automated kiosks, as so many fast food restaurants already are doing.  Worse, if their unions, through strikes, force those higher wages, that will end with two outcomes: higher food prices for consumers, and from that, lessened demand for those restaurants’ fast food.  That, in turn, will result in fast food restaurants accelerating the move to kiosks or going out of business.  That last will cost not only the demanders their jobs, it’ll cost everyone in those restaurants their jobs.

And the right to join a union?  They already have that.  These folks should know that; they’re being misled by union leadership and the SJWs in the mix.