February 20, 2011

Fix the infrastructure

Obama is right, the infrastructure needs fixing. In many respects it is a question of whether it is fixed now or fixed later. Our roads are crumbling. We don't have a rail system. Many areas in this country still do not have adequate access to the internet. Many of our school buildings are a disgrace. Our cities are awash with buildings that contribute to the plight of our inner cities.

Money is cheap right now and we need to ignite the economy by putting people back to work. If many of these projects were taken on by the private sector they would not be considered expenses. They would be investments that are capitalized and expended over the life of the asset, rather being reported as an expense that would either reduce net income or cause a net loss. The government most look at its outflows in the same manner. Recognize the expense over the life and usefulness of the asset.

At the same time the government must get more efficient and cut out waste. We all know there is much waste that needs to be eliminated.

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