Infrastructure – Page 2 – The Wrongologist

Biden Invites Sinema and Manchin to Talks

The Daily Escape:

Sunset, Cape Disappointment, WA – September 2021 photo by Rick Berk Photography. The lighthouse was built in 1856 and was the first in the Pacific Northwest.

In politics as in business, there’s theater, and then there’s the real work. Biden outlined his goal of raising taxes on the wealthy to strengthen the middle class and boost the economy in remarks on Thursday afternoon at the White House.

On Wednesday, Biden met with Sens. Joe Manchin (D-WVA) and Kristen Sinema (D-AZ), looking to find a path forward on the infrastructure bill, along with the big social spending package and Machin’s voting rights bill.

Democrats will use budget reconciliation for the social spending bill, bypassing Republican opposition. It allows them to win Senate passage with 51 votes, with VP Harris casting the tie breaking vote, rather than the 60 votes that would otherwise be required.

But that means Manchin and Sinema need to vote for the big bill, something they have said they won’t do. No one who was in the room when the talks took place came out and said that a deal was pending. But there’s still time for that to emerge.

The House Ways and Means Committee unveiled a tax proposal this week to pay for the $3.5 trillion package, which includes Democrats’ plans for universal pre-K, expanding Medicare, child and elder care, and the environment. The committee approved its portions of the big bill in a near party-line vote Wednesday, which included the new tax provisions.

Predictably, the WSJ’s editorial board weighed in on the proposed tax plan, saying:

“…this bill looks like a House Democratic suicide note.”

More from the WSJ: (Emphasis by Wrongo)

“If Americans are successful, Democrats want to tax more of their income. The top individual tax rate will rise to 39.6% from 37%, as Mr. Biden promised. But wait: The higher tax rate will kick in at a mere $400,000 for individuals and $450,000 for married couples. That’s down from $523,600 and $628,300 under current law.”

A mere $450,000. They trot out their “pity the poor rich” trope any time the possibility that tax rates might be raised shows up. Let’s unpack this:

The 98th percentile of household income is $387,116 and the 99th is $531,020,

This opens the possibility that there will be some families that are below the 99th percentile of household income and above the 98^ththreshold. Under the new law, they would be forced to pay about $700 more in taxes than they do now. That’s assuming the Democrats’ latest effort at socialism in America is enacted. This paltry tax increase might cut into the nanny’s Christmas bonus. Why are Democrats so cruel?

Sunday Cartoon Blogging – August 15, 2021

Sorry there wasn’t a Saturday Soother this week. Instead of writing for you, Wrongo and Ms. Right went to an outdoor concert at New Jersey’s PNC Arts Center. It’s an outdoor amphitheater that seats about 7,000, with lawn seating for maybe another 10,000.

Very few people wore masks, but NJ doesn’t require masking at outdoor venues. And they didn’t check for vaccine cards. Will the show we saw become a super-spreader event? Let’s hope not.

The 2021 summer concert season has seen conflict over masking and vaccination requirements. With the spread of the Delta variant, a loose consensus has taken shape. Starting in October, fans must provide proof of vaccination, or a negative test at most venues. Some venues and artists already insist on them.

But the decision process is complex. States like NJ have a say, and so do the artists. Live Nation and AEG Presents, the two global companies that dominate the concert business, have each announced that, by October, most venues and festivals they control in the US will require vaccinations or negative tests for entry.

We all need think about our personal response to seeing concerts in light of this from Fortune:

“In short: There is now mounting evidence that mRNA-based vaccines such as Pfizer’s and Moderna’s lose potency over time and especially against the Delta variant, and that the Pfizer vaccine’s efficacy drop is significantly more dramatic.

More: (emphasis by Wrongo)

“…discouraging new research from the Mayo Clinic forced investors to question how long the Pfizer vaccine remains effective at preventing coronavirus infections and protecting those who are vaccinated from getting sick with a Delta variant case. Pfizer’s shot may be significantly less effective than Moderna’s against breakthrough infections (42% efficacy for Pfizer/BioNTech versus 76% for Moderna), according to the data…”

The Mayo Clinic study, which hasn’t been peer-reviewed, noted that between January and July, Moderna’s jab was 86% effective at preventing infection, while Pfizer’s was 76% effective. But for the month of July alone, those numbers fell to 76% for Moderna and 42% for Pfizer. Researchers observed similar drops for the Pfizer shot outside of Minnesota in states with high COVID counts such as Florida.

If this trend holds true in peer-reviewed research, public health officials, drugmakers and medical institutions will have to rethink their approach to fighting the Delta variant. In fact, we may need to think carefully about how we will live if Covid becomes endemic.

The good news is that for now, if you are vaccinated but infected, you probably won’t need hospitalization, and you most likely won’t die. The bad news is you won’t know you’re infected until symptoms set in, meaning you can still spread the virus to anyone you meet.

Do the world a favor. Wear a mask. On to cartoons.

The race that never ends:

Opposition to basic safety will literally be the death of us:

One way to get school kids masked up:

One way to convince the vaccine hesitant:

New Census worries GOP:

DC has wrong priority for infrastructure:

Sunday Cartoon Blogging – July 25, 2021

David Frum in the Atlantic:

“In the United States, this pandemic could’ve been over by now, and certainly would’ve been by Labor Day. If the pace of vaccination through the summer had been anything like the pace in April and May, the country would be nearing herd immunity. With most adults immunized, new and more infectious coronavirus variants would have nowhere to spread. Life could return nearly to normal.”

“When pollsters ask about vaccine intentions, they record a 30-point gap: 88% of Democrats, but only 54% of Republicans, want to be vaccinated as soon as possible. All told, Trump support predicts a state’s vaccine refusal better than average income or education level.”

Wrongo’s patience is nearly at an end with these people. It will be fully at an end once vaccinations are available to the 12 and under crowd. Then, let the anti-vaxxers go one-on-one with the virus to see who wins. Wrongo will say to them, “mask up if you want to live, or don’t”. On to cartoons.

GOP tries on a new vax message:

And even Fox tries walking it back:

And it’s not just at home:

McCarthy rolls his ball of dung back to the GOP caucus:

Parties don’t see eye to eye on infrastructure:

Our weather’s out of control:

Deferred Maintenance is America’s Exceptionalism

The Daily Escape:

West Cornwall Covered Bridge, West Cornwall, CT – photo by Juergen Roth Photography. The 172’ bridge spans the Housatonic River.

America runs on deferred maintenance. We won’t do a thing today that can be put off for another day, another year, or several years. The ongoing disaster of the collapsed condo at Champlain Towers South in Florida is a perfect metaphor for America. A quick look at some details is instructive.

The NYT had a story about the conflicts among residents and the Champlain Towers South condo board. A report indicated that major repairs were needed to maintain the structural integrity of the building. But the repairs weren’t popular with the residents: (brackets by Wrongo)

“Steve Rosenthal, 72, a restaurant advertising executive, went to the gym in the building nearly every day. Afterward, he would stop at the pool, where he could see a crack on a third-floor balcony that he described as ‘atrocious.’ But he called the $135,000 assessment [to fix the problems] on his condo, a corner unit with double balconies, a ‘second mortgage’.

‘It’s an upscale building, but it’s not the Ritz or the Four Seasons….The people that live [here]…aren’t Rockefellers or Rothschilds. We’re upper middle class, I guess, and a lot of us are retired’….When a neighbor knocked on his door, 705, with a petition against the assessment, Mr. Rosenthal signed it. The first payment was due on July 1.”

BTW, Rosenthal survived the condo collapse. He was rescued from the intact part of the collapsed building, and he’s staying in a Residence Inn a few blocks away. Worse, Rosenthal has filed a lawsuit against the condo board for negligence and against the property for shoddy construction!

America is filled with assholes like Rosenthal. They’ve taken over – they dominate our politics (I’m talking to you Mitch). They dole out promotions to other assholes. They punish anyone who tries to do the right thing. They tell us how to vote, and who to love. (Hat tip: Jessica Wildfire)

Their attitude that “This seems bad, but if I have to pay to fix it, count me out” is the position of many, many Americans, regardless of what kind of deferred maintenance is being considered. Fixing our roads? Sorry, no gas tax increases. Better school buildings? Property taxes are too damn high. Better Internet? Why? Better health insurance? Socialism!

DC politics is infested with a “we can’t afford this” knee-jerk reaction whenever the subject of dealing with America’s deferred maintenance is on the table. And of course, that’s the thinking that deferred the maintenance in the first place.

It’s particularly bad when the subject is how to deal with climate change. What incentives are there to alter behavior to prevent change that will have most of its effects after 2050? The answer is none, except for an intangible feeling that you’ve done the right thing for posterity.

Current stakeholders (regardless of whether they have a stake in a property, a city, or the entire country), willingly defer maintenance to the next generation of stakeholders, when it will be much, much more expensive. Eventually, the problem can’t be remedied. Like In the Florida condo, that’s when things start collapsing, and people start dying.

Perhaps someone should have said to the condo residents: “You can probably play Russian roulette without dying, but do you really like your odds?”

There was a 1981 ad by Fram Oil Filters that had the tag line: “pay me now or, pay me later.” Imagine, accountability and wisdom brought to you by Madison Avenue! When we move from car maintenance to the country, the answer is you’ll pay WAY more later. We’ve been blowing off serious repair and replacement of our infrastructure for decades.

We’ve blown off making sure that all Americans have safe bridges and roads.

We’ve blown off making sure that all Americans have basic health insurance.

We’ve blown off immigration reform.

We’ve blown off gun sanity.

We’re blowing off moving from fossil fuels to renewables.

Do you see the parallel in how we respond to these issues? First, there’s a warning, then there’s evidence, followed by denial, delay, and ultimately, disaster. There’s no problem, if there is a problem, it’s too expensive to fix. Maybe we can fix it in a few years, eventually followed by incalculable cost and misery.

We’re the only rich country that kicks the can down the road on anything that’s politically difficult. You know that’s true if you’ve been to an airport in China or Europe. If you’ve taken public transit in Europe or Hong Kong. If you’ve seen the ports in Rotterdam or in Asia.

Time to kill all the assholes.

Sunday Cartoon Blogging – June 27, 2021

Long-time blog reader Terry McK. commented about yesterday’s column on infrastructure:

“If we look at the collapse in Florida, there is a simple lesson about infrastructure. A report has just emerged that shows that the building had many compromises – but presumably, the costs of rehabbing the structure were prohibitive. We have deferred maintenance costs for so long across the US and one can see the results in bridges and tunnels across the US. So, what is needed is more money, not the shell game of making something look like it won’t cost more money.

But real money means taxes.”

Terry’s right, the Florida condo is a metaphor for the failure of our legislators to legislate. Here’s a view of the horrific damage:

Photo via AP

A 2018 engineer’s report cited by the NYT found major structural damage to the concrete slab below the pool deck and “abundant cracking and crumbling” of the columns, beams and walls of the parking garage. And two and a half years later, before a repair project was scheduled to begin, the building pancaked without warning.

The city released that report saying the damage was caused perhaps by years of exposure to salt air and water intrusion: (brackets by Wrongo)

“Though some of this damage is minor, most of the concrete deterioration needs to be repaired in a timely fashion…[in order to maintain]…the structural integrity” [of the building]”.

Prior repairs to cracks were failing. Concrete on many balconies were also deteriorating. This building isn’t a public property. Responsibility for its maintenance is on the shoulders of the owners, the condo association, which will probably declare bankruptcy and move on.

But the collapse is an object lesson for our DC pols. First, it reminds us that our public infrastructure is deteriorating and in need of replacement. Second, Republicans who lecture us about personal responsibility and that there is no free lunch, nonetheless are always fighting to cut taxes and limit funding for maintaining our infrastructure.

They would also support the right of the condo ownership to declare bankruptcy.

Third, it shows how important it is not to turn over public goods to public/private partnerships to build, own and manage, and then expect them to stay safe and intact. The economic incentives for private parties maintaining public goods will be all wrong. On to cartoons.

Washington’s unvirtuous circle:

It’s clear who’s truly against America:

Derek goes away:

Saturday Soother – June 26, 2021

The Daily Escape:

Low tide, Thumpertown Beach, Cape Cod MA – July 4, 2018 iPhone photo by Wrongo

After Biden and a bipartisan group of US lawmakers announced a deal on infrastructure, it soon became clear that Democrats would only support it if it was passed alongside a big reconciliation bill, something that Wrongo suggested was the only way to play infrastructure with the Republicans.

The American Society of Civil Engineers says that we need to spend $2.59 trillion in the next decade on pure, traditional infrastructure. According to a fact sheet released by the White House, Part 1 includes just $579 billion in new infrastructure spending over the course of five years, with $309 billion going to transportation and $109 billion earmarked for roads, bridges, and other projects.

That means there needs to be two bills: one, a “hard infrastructure” bill along the lines of the framework agreed on Thursday, and the second, a “broadly defined infrastructure” bill containing the other provisions Biden originally wanted in his big infrastructure bill.

If a bipartisan Part 1 appeases enough moderates of both parties sufficiently to get them not to raise hell over a reconciliation Part 2, then Biden will be acknowledged as better at politics than the pundits.

OTOH, McConnell says Biden can have Part 1 only if he doesn’t ask for Part 2. That sets up the possibility that Democrats must choose between something that’s admittedly terrible, or nothing. Biden says he won’t sign the first unless he is also given the second one to sign, while Pelosi says the first bill won’t pass the House until the reconciliation bill passes the Senate.

As with everything in DC, the usual caveats apply: So. Much. Can. Go. Wrong. The two-track Senate strategy (one bill bipartisan, another through reconciliation) requires extraordinary political deftness, possibly a bridge too far for the craptacular Senate Majority Leader Schumer.

A few words about Part 1 from Common Dreams:

Rather than pushing for taxes targeting rich individuals and corporations, a White House fact sheet on the bipartisan package outlines other potential financing sources, from unused Coronavirus funds to reinstating Superfund fees for chemicals.
The proposal also relies on public-private partnerships, (P3s), private activity bonds, and asset recycling for infrastructure investment.

When politicians say “asset recycling” they mean the sale or lease of public assets to the private sector so the government can put that money toward new investments. But the devil is in the details, and how we fund new infrastructure can’t be through privatizing our existing infrastructure.

America won’t get a redo once its public infrastructure is privatized.

In some places public/private partnerships can be tolerable. Think rail policy where Amtrak’s funding is contingent on some sort of matching grants for private freight service improvement. This can be better justified as both are connected as part of the same rail network and improvements can be easily tracked.

But elsewhere, it can’t, especially in power and telecom, where P3s only serve to prevent public services from being offered. This sounds like how Philadelphia and other cities sold off infrastructure like parking garages and parking meters. The city derived no recurring income, while private companies collected the monies.

From Benjamin Studebaker:

“In most democracies, a working legislative majority allows the government to pass legislation. In the United States, things don’t work this way….As our problems slowly mount, neither the Democrats or the Republicans are able to experiment with policy solutions. The policies that do get passed are the result of fraught compromises. It’s never clear who is responsible for the policies that issue from the federal government, and every time anything goes wrong every part of the US government passes the buck to every other part.”

The failure to make essential investments in the basic infrastructure of the country is not consistent with having a functioning state. Either the filibuster must go, or the primary system must go. The primary system is here to stay because it is equated with democracy itself in the US. Therefore, sooner or later, the filibuster will go.

So, rather than teasing Americans with the promise of a new Roosevelt administration (in aviator shades), it looks like we’re in for another round of gridlock.

That’s enough politics for this Saturday. It’s time for our Saturday Soother. Wrongo and Ms. Right are spending a few days on Cape Cod, which is always enjoyable. So, before going off to watch another beautiful sunset, let’s take a few minutes to relax and listen to the Second movement (largo) of Dvořák’s “From the New World“, performed here in 1985 by the Vienna Philharmonic, directed by the late Herbert von Karajan:

Monday Wake Up Call, Bipartisan Kabuki Play Edition – June 21, 2021

The Daily Escape:

North Umpqua River, Glide OR – 2021 photo by Bobbie Shots Photography

We’re hearing a lot of talk about a bipartisan infrastructure plan. The plan would spend about $1 trillion over the next eight years. But that’s only about half of what Biden had asked for and won’t accomplish anywhere near all that he wanted. But half is better than nothing, and if the plan were fair, Wrongo would support it.

Sen. Lindsey Graham (R-SC) made headlines on Sunday by saying he’s the latest Republican Senator to support the bipartisan infrastructure deal in the Senate. On Fox News, he said:

“I think the difference between this negotiation and the earlier negotiation is that we are willing to add more new money to infrastructure in this package and I am hopeful that the White House and Joe Biden stay involved, we can get there,”

He also said that the “bipartisan” support will disappear if Democrats signal that they intend to follow it up with a second infrastructure package passed via reconciliation.

But is there any reason to believe he, or other Republicans involved in these negotiations are acting in good faith? Or is this another game like what happened with Obama’s Affordable Care Act negotiations? Will Republicans simply try to run out the clock on the legislative calendar and then ultimately vote no on the final bill?

The bipartisan proposal is led by Sens. Rob Portman (R-OH) and Kyrsten Sinema (D-Ariz.). It costs about $973 billion over five years or $1.2 trillion over eight. The plan would have $579 billion in new spending. That makes the bill’s total new investment about one-fourth the size of Biden’s initial proposal. Graham joined the group, including 10 Democrats and 10 other Republicans, as its 21st member.

But as always in DC, the devil is in the details. Their plan uses public infrastructure funds for “public private partnerships” in the form of thousands of new toll roads. It uses money already earmarked for COVID relief funds, rather than paying with more progressive taxation. It imposes new taxes and surcharges on electric vehicles, a disincentive when we should be doing our best to phase out fossil fuels. But more about that below.

OTOH, there are worthwhile elements of their funding methodology. They are suggesting ramped-up IRS enforcement to pay for a portion of the spending. In a NYT op-ed last Wednesday, five former Treasury Secretaries Timothy Geithner, Jacob Lew, Henry Paulson, Robert Rubin and Larry Summers all agreed that the country should strengthen its tax system by collecting uncollected taxes.

The Treasury’s Office of Tax Analysis estimates that this could generate $700 billion over the next 10 years. But the former Treasury Secretaries say that is a modest estimate, citing former IRS commissioners who say it could be as large as $1.6 trillion.

The taxes on electric vehicles can be justified, since drivers of EVs do not pay gas taxes that fund highway maintenance, even though they use roads and highways just like gas-powered cars. But an EV tax must be paired with investments in electric charging stations or else the net effect would be to slow America’s transition off fossil fuels.

We’re watching as, Eric Levitz says, a staring contest between moderates and liberals. Liberals can’t pass anything without Manchin and Sinema’s votes. Moderates won’t get federal dollars for their states without the liberal’s cooperation. Both factions are waiting for the other to blink, while Republicans are happily trying to keep the stare down going: The longer it lasts, the less time Democrats will have to pass new laws before midterm season begins.

The Republicans are bragging that the plan doesn’t raise taxes. That’s not exactly true. They mean the plan doesn’t raise taxes on corporations or the rich. They don’t seem to mind that the plan would take money out of the pockets of working- and middle-class people.

The legislative calendar is a scarce resource. The Senate has only six more workweeks before summer’s end. Time to wake up Democrats! Biden can support this $1 trillion bill, but he must also keep pressing forward with a reconciliation bill to address other infrastructure priorities.

To help you wake up listen to the great Pink Martini perform their song, “Hang on Little Tomato“. Here it’s performed live in Portland, Oregon in December 2005, featuring vocalist China Forbes.

The song was inspired by an ad for Hunt’s Ketchup in a 1964 issue of Life magazine telling a green tomato to stay on the vine and ripen. It’s been popular lately as a song of hope:

Saturday Soother – April 3, 2021

The Daily Escape:

Spring snow in Grand Canyon NP – March 2021 photo by indieaz

Here’s some good news amidst all of the negative DC political punditry. US manufacturing activity hit its highest level in 37 years last month. Manufacturing’s biggest problem right now is the same one that Wrongo’s new treadmill company had: making products fast enough to satisfy all of their current demand.

A little more detail: The overall ISM manufacturing index rose from 60.8 to 64.7, the highest reading since 1984. The new orders sub-index, an important leading indicator, also rose from 64.8 to 68.0, the highest reading since 2004.

The Economist says that CEO worries about weak demand for products has been replaced by fear of supply bottlenecks, from worldwide chip shortages to the freak traffic jam in the Suez Canal. They quote Chad Moutray, chief economist of the National Association of Manufacturers:

“…90% of members surveyed recently by the trade association were bullish about their businesses’ outlook for the next 12 months, the highest in two years. Two-thirds foresee revenues returning to pre-pandemic levels by the end of the year, as new orders, production and employment all pick up.”

The optimism is being backed by investment. Intel announced that it would spend $20 billion on two factories in Arizona. More from The Economist:

“Scott Davis of Melius, a research firm, reckons that capital expenditure at several dozen leading American industrial companies he follows, including icons such as Caterpillar and Stanley Black & Decker, are set to rise by 20% on average this year.”

Goldman Sachs forecasts that capital spending at S&P 500 firms will reach $740 billion this year, slightly above the $731 billion in 2019. For the first time in a while, Goldman Sachs says big American firms will spend more on capital goods, research and development than on dividends and share buy-backs.

Three factors are driving this positive news. First, America will be largely vaccinated by the summer, so the level of those unemployed should continue to drop, like it did last month, when 916,000 new jobs were added. This means that Americans will have more money to spend on cars, electronics and other goods. It’s not all roses, manufacturing jobs increased by 53,000. But, since February 2020, manufacturing is still down 515,000 jobs, or 4% of the total. As of now, over 60% of the total manufacturing jobs loss of 10.6% has been regained.

Second, much of the Biden infrastructure plan’s spending will wind up in the hands of private companies who will be performing all of that new infrastructure building. That’s the kind of trickle-down that causes economic growth.

Third, companies went to school on the impacts of tight, non-resilient supply chains. Some were surprised that bad Texas weather could slow production. Or, that Covid could stop their orders for PPE, and strain port capacity in Los Angeles. Stranded container ships in the Middle East and geopolitical tensions with China are making CEOs think more seriously about building networks that can withstand such shocks.

In the short term, this involves stockpiling components. In the longer run they are looking to bring production closer to home, which would also bolster American suppliers. More from the Economist:

“General Motors is hoping to build…a second battery factory in America. Intel’s planned Arizona [factories]…are a way both to guarantee deliveries of chips to customers in Detroit and beyond, and to “near-shore” the semiconductor giant’s own production.”

If people can just hang in there a little bit longer, we might just be able to avoid a whole lot more Covid deaths, and then have a very good year. Fingers crossed.

Time to put down your phones and settle in for a Saturday Soother, where we spend a few minutes escaping from the perils of the world. Here at the Mansion of Wrong, we had snow flurries on Friday, and the temperature barely got into the high 30s. That means a break from more spring yard work for a few days.

Let’s start by brewing up a yuuge cup of Dirty South – (As Dark As We Will Go) coffee ($14.99/12 oz.) from Atlanta’s Peach Coffee Roasters. Given the voting repression in Georgia, it seems certain that the outlook in the state for free and fair elections is substantially darker than this coffee.

Baseball’s opening day was Thursday. Some games were cancelled, while some played in snowstorms. When baseball has both indoor stadiums along with many in the warmer south and west, why are teams playing outdoors in 40°weather?

And, in honor of opening day, take a seat by a window and listen to “Field of Dreams” from the movie, performed live at the Tenerife International Film Music Festival. The music is composed by James Horner. The orchestra is conducted by Diego Navarro, artistic director of the festival. It is performed by the Tenerife Symphony Orchestra. This is a very nice way to remember an iconic film:

Remember the line: “Is this heaven? No, it’s Iowa.”

Biden’s Infrastructure Plan

The Daily Escape:

Crepuscular rays at White Sands NM, NM – photo by dantreks

Biden announced his big infrastructure plan on Wednesday. The American Jobs Plan is a $2+ trillion proposal that is an expansive interpretation of the word “infrastructure.”

Naturally, Republicans are against it. South Dakota Gov. Kristi L. Noem (R) disparaged it on Fox:

“I was shocked by how much doesn’t go into infrastructure…It goes into research and development. It goes into housing and pipes and different initiatives, green energy.”

So, Republicans aren’t sure what “infrastructure” is? Or maybe, they want Biden restricted to being President Pothole? They must know that “pipe” and “green energy” are well within the definition of “infrastructure.”

But they would be against it, no matter how little it contained. Today’s Republican Congress is even worse than it was in 2009. Back then, Obama’s stimulus bill to combat the Great Recession, (like Biden’s stimulus bill after COVID-19), received zero GOP votes in the House. In the Senate, Obama got three more Republican votes than Biden. And in the 2010 midterms, the GOP regained control of both chambers, setting its template for 2022.

Now In 2021, Republicans no longer run on policy. They’re running against a mythic Democratic party bent on imposing socialism, demeaning Christianity, defunding the police, coddling menacing migrants, and supporting angry American minorities.

If you’re a Republican politician, you’re not offering any actual policy. They’re offering to fight Democrats, and that seems to be enough to get reelected. This means that Republicans will filibuster any bill the Democrats can’t pass through reconciliation.

Biden knows that. So, his legislative strategy prioritizes rebuilding American infrastructure, something that has a broad consensus within the electorate. His plan includes a commitment to confronting climate change (and creating jobs) by modernizing the electrical grid, encouraging the development of alternative energy sources, and building charging stations across America.

He plans to combat poverty and buttress the middle class through funding childcare, universal pre-K, and free community college, while extending the child tax credits authorized by his stimulus plan.

Taken together, his American Jobs Plan represents Biden’s belief that the pandemic has changed what is politically possible. He proposed to open the way to expanding government’s role in addressing our economic and societal weaknesses, on a scale of spending we wouldn’t have dreamed possible.

He’s taken the ideas originally outlined in the Green New Deal in 2019 and repackaged them under the more politically popular umbrella of infrastructure, including some of the same goals. Biden’s plan isn’t the Green New Deal in sheep’s clothing, regardless of what Republicans say.

To help cover the costs of his plan, Biden proposes raising taxes on corporations, the affluent, estates, and capital gains, starting with corporate taxes. He’s proposing an accompanying tax plan, the Made in America Tax Plan. If it passes, it will pay for the American Jobs Plan in 15 years, and reduce deficits from then on.

Biden proposes to set the corporate tax rate at 28%, from its current rate of 21%, nowhere near the 35% tax rate before the 2017 tax cuts. He also plans to discourage offshoring of corporations and to get rid of subsidies for fossil fuels. Here’s a chart that gives some historical perspective about Biden’s corporate tax proposal:

It’s clear that despite Republican wailing that the infrastructure plan is a “trojan horse” for raising taxes, the reality is that corporate taxes will still be lower than at any point since the 1940’s.

Even this may be a bridge too far, since the Senate’s most conspicuous swing vote, Sen. Joe Manchin (D-WVA), says that while he favors tax hikes, he insists that infrastructure legislation should be passed with bipartisan support.

This suggests a longish legislative process. As a realist, Biden will be happy to again pass landmark legislation with no Republican support. But first he must get Manchin to labor through the thankless work of establishing that the GOP is unwilling to work toward a meaningful compromise.

OTOH, a new Morning Consult/Politico poll says that by a two-to-one margin voters prefer an infrastructure bill that includes tax hikes to one that does not have those tax hikes. That means the GOP may be in trouble if it castigates Biden and Democrats if they pass his plan.

Despite Wrongo’s early misgivings, Biden is the reset button that America desperately needed. He was outwardly moderate but has moved to embrace more progressive positions.

But we shouldn’t underestimate the damage Republicans can do with their singular focus on power and winning the 2022 mid-terms.

Monday Wake Up Call – Infrastructure Edition, March 15, 2021

The Daily Escape:

Ruby Beach Overlook, Olympic NP, WA – 2021 photo by Erwin Buske

Back in pre-history or as Wrongo likes to call it, 2004, John Edwards said that there were two Americas. He was talking about social stratification and its pernicious impact on social cohesion in America.

Biden and Congress have just passed the American Recovery Plan into law. It provides a temporary assistance to many Americans, particularly for those in the two Americas who are struggling in our economy. As Wrongo said yesterday, although total wages are now at the level they were before the Covid recession, almost 10 million fewer Americans are working! If we are to be a healthy society, these people need jobs.

Listening to Republicans, there’s no money left in the piggy bank to fund the rest of what America needs to do. They say our debt is too high, and that it would be a terrible mistake to raise taxes on corporations or the wealthy to fund our needs.

Yet, something must be done about the disaster that is America’s infrastructure. Biden has said that improving and modernizing our infrastructure is a high priority for his administration. He campaigned on a $2 trillion infrastructure plan to create a:

“modern, sustainable infrastructure and an equitable clean energy future.”

But there is a huge chasm between where we are and where we need to go. From the WaPo: (parenthesis by Wrongo)

“America can put a rover on Mars, but it can’t keep the lights on and water running in the city that birthed the modern space program (Houston). It can develop vaccines….to combat a world-altering illness but suffers one of the developed world’s highest death rates due to lack of prevention and care.”

America’s recent historic breakthroughs in science, medicine and technology coexist alongside monumental failures of infrastructure, public health, and education. More from the WaPo: (emphasis by Wrongo)

“The disparities reflect a multitude of factors…but primarily stem from a few big ones: Compared with other well-to-do nations, the US has tended to prioritize private wealth over public resources, individualism over equity and the shiny new thing over the dull but necessary task of maintaining its infrastructure, much of which is fast becoming a 20th century relic.”

One of our two Americas pays a heavier price for our politicians’ unwillingness to build new infrastructure. Yet politicians kick the can down the road, since higher taxes to fix things is rarely a winning political strategy.

From highways to airports, from internet access to schools, to the electric grid, our infrastructure isn’t distributed equally. Even in richer zip codes, infrastructure quality is uneven. The myth that America treats everyone equally regardless of race, color, or creed is as decrepit as our bridges and highways.

Americans used to be proud of their infrastructure. But since Reagan, Republicans have believed that government spending is a problem. Loving new roads, bridges and tunnels changed to outright suspicion when austerity became the Republican religion.

They are always willing to cut taxes by $trillions to further enrich wealthy people. But they scoff at building a high-speed rail network, a high-speed internet network, or an integrated electric grid. If you’ve ever traveled through a Chinese airport, or traveled by rail in Europe, you have experienced awesome infrastructure projects, things that are normal in most developed nations.

Yet in America, we’re far behind, mostly because Republicans put growing personal wealth ahead of supporting the public good. Much of this hurts the bottom half of the US population more than the top half. It hurts rural America more than urban and suburban America. Most suburbs are as modern and safe as any major city in Europe or Asia. Their public schools are modern and largely well-equipped.

None of these are true in rural or inner-city America.

The time has come to address infrastructure. At least some of it must be paid for by new taxes, even if that means zero Republican political support.

Time to wake up America! We can do better for both Americas by investing in education, infrastructure, and people. And we can give some of those 10 million long-term unemployed workers a new opportunity to succeed in a growing US economy.

To help you wake up, let’s go back to the 1980s, and listen to the Eurythmics do a live version of “Would I Lie to You”. High energy and lots of fun:

The Wrongologist

Geopolitics, Power and Political Economy

Category: Infrastructure

Biden Invites Sinema and Manchin to Talks

Deferred Maintenance is America’s Exceptionalism

Sunday Cartoon Blogging – June 27, 2021

Saturday Soother – June 26, 2021

Monday Wake Up Call, Bipartisan Kabuki Play Edition – June 21, 2021

Saturday Soother – April 3, 2021

Monday Wake Up Call – Infrastructure Edition, March 15, 2021