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Monday, April 05, 2021

Borrowing $2 trillion to spend $921 billion on public works

A reader asked me a few questions about Chairman Xiden's $2 trillion infrastructure plan, which I gladly answered and will share with readers.

But first let us look at how the mainstream press views this. 

CNBC reported, "President Biden unveiled a more than $2 trillion infrastructure and economic recovery package on Wednesday."

Well that's a lot of money. We are increasing federal spending by another 50%. Whee.

The story said, "The proposal would:

"Put $621 billion into transportation infrastructure such as bridges, roads, public transit, ports, airports and electric vehicle development.

"Direct $400 billion to care for elderly and disabled Americans.

"Inject more than $300 billion into improving drinking-water infrastructure, expanding broadband access and upgrading electric grids.

"Put more than $300 billion into building and retrofitting affordable housing, along with constructing and upgrading schools.

"Invest $580 billion in American manufacturing, research and development and job training efforts."

Hmm.

So we are borrowing $2 trillion so we can spend $621 billion on transportation plus another $300 improving public utilities.

That's 45%.

Of course, the road money includes $20 billion to destroy racist roads. They are lined with racist trees. That is right, readers, America is fighting bigot-tree.

Which leads to my reader's questions. He wrote, "Mr. Surber, a couple of questions that I do not see being asked.

"1. Did not Obama have a infrastructure plan that cost one trillion dollars and did nothing?

"2. Where does all that gasoline tax we pay on each gallon of gas go? Where is this spent?

"3. Where does the ticket taxes we pay for airline flights go? Is this not spent on airport improvement? I thought airport upkeep and operational cost was paid by landing fees, gate rental, ticket counter rental and food court, etc. 

"4. Are not tolls for some roads and bridges for upkeep and improvement?

"I am sure there are other examples as well."

My answers were simple.

1. That $787 billion stimulus under Obama went down the rathole to pay off investors, er donors. We know this because Biden guided the stimulus. He was the bag man.

2. The federal gasoline tax goes into a pot where senior senators dole it out to their states so they can get a highway named after them. We have 22 Bob Byrd Highways, Courthouses, and sundry other items. Some of them were actually necessary.

3. The government no longer needs to tax people to fund things. It merely prints what it wants to spend. Ticket taxes like most taxes exist only to punish people's behavior. In this case, the government opposes allowing the middle class to be free to roam the country, as the old Southwest Airlines commercial said.

This was why the government took over airport security after 9/11 and eagerly shut down the airports when the virus hit. The government never lets a crisis pass without expanding its power.

4. Finally, tolls exist to pay for the tollbooths. Every 30 years or so, when the bonds are paid off, the Turnpike borrows again to pay for improvements that always seem to include paving the driveways of politicians.

Skepticism is when you fear things will go wrong. Cynicism is when you know they will go wrong.

The highways to hell aren't paved with good intentions. They are paved with inferior asphalt spread poorly by a state highways department run by the unemployable nephews of state elected officials.

35 comments:

  1. Years back, things like this were said to amount to "Throwing money at the problem."

    We need to revive that term, particularly as this is all looking more and more like a senile version of a 1970s revival.

    ReplyDelete
    Replies
    1. Also known as "pouring money down a rathole."

      Delete
    2. "Throwing good money after bad."

      Delete
  2. This is a carbon copy of Obama's payoff pork bill. Same song different verse.

    "I guess those shovel-ready jobs weren't as shovel-ready as we thought."

    "It's a three-letter word. Jobs. J-O-B-S."

    ReplyDelete
    Replies
    1. And this will all be used as the "reason" for proposing huge, crippling tax increases in the near future.

      Because for leftists, the chief purpose of taxation is economic sanctions against people they don't like.

      Delete
    2. J-O-B-S
      Just
      Over
      Broke,
      Suckas !

      Delete
    3. You are right, Snow and LG.

      Delete
    4. LG, we knew it was a fake the first time. We're not the suckers.

      Delete
    5. You loved the shovel-ready jobs last time.

      Delete
    6. "Somewhere out there a village is missing its idiot."

      Delete
  3. "A pessimist is an optimist with experience."

    ReplyDelete
    Replies
    1. "A conservative is a liberal who's been mugged."

      Delete
    2. "Somewhere out there a village is missing its idiot."

      Delete
    3. Big Jake: I thing there is an over-supply of idiots or a shortage of villages.

      Delete
  4. The Obama Stimulus (aka "Porkulus") was like heaving a big rock into a pond and watching it disappear without making a splash or leaving a ripple.

    They predicted it would create ("shovel-ready") jobs. Afterward they talked about jobs that were "created or saved."

    ReplyDelete
    Replies
    1. A friend was tasked by a major company to find those shovel ready jobs so his company could bid on them. He found 3 minor projects to bid on and the company executives said forget it.

      Delete
  5. When this passes it will simply equal what Trump did last year which was $4 trillion. I didn't notice any bellyaching about any of that over here.

    Not a bit. Its party over principle, party over country, party party party. That's why there is such a mess both sides think their crap doesn't stink.

    Meanwhile cities large and small across the land have begun to try and figure out how to spend their share of the fiat money.

    And if Trump were still in power we'd be told how necessary all this fiat money is. But since he isn't then this is all unnecessary.

    Right.

    ReplyDelete
    Replies
    1. This comment has been removed by the author.

      Delete
    2. You lie again, Jeffery (or Roland or Jake or Susie). People did object. Don said it was compassionate because of the Walz Whipworm your Commie pals unleashed on us.

      But you never objected to Zippy's boondoggle.

      So quit lying. Elwood.

      Delete
    3. people did object, and objected loudly. they were all Democrats and they said that the things proposed, like fast tracking vaccine approval, buying vaccine bottles and syringes would never be necessary because 'orange man bad, orange man stupid'. BTW I heard the House holds the purse strings and the Dems controlled the house during the Pandemic, so any whining you losers do on the left about the money, it's on you. but, we will keep track of how you Dems spend our money and we will reward you with a shellacking in 2022.

      Delete
  6. Most republicans are culpable in this debacle as well.

    ReplyDelete
    Replies
    1. Not most, 7 in the Senate, 145 in the House, 7 in SCROTUS.

      A shotgun may be a satisfying weapon, but it takes the good with the bad.

      Delete
    2. Lard, you are quite correct. The establishment of the party runs the show and bears the blame. You have a mere handful in both Houses of Congress COMBINED that will do the right thing. #DitchMitch is an expert at cycling his votes around his membership to maintain the illusion of conservatism. But when push comes to shove he gets them to vote the way his masters expect.

      It's a show.

      Delete
    3. 45 in the Senate is not a handful.

      Delete
    4. Some people are too stupid to see what's happening. Ahem. That's why the uniparty wins no matter who is nominally in power.

      Delete
  7. There was an old political cartoon about the abuses of the customers of the SPRR along their right of way in the person of a donkey ridden by the Big Four and a coolie (the Chinese Curse) with the caption,

    When Will This Ass Kick?

    We voted out Zippy's third term in '20. Can't do it this time.

    When in the course of human events...

    ReplyDelete
  8. An optimist says “it doesn’t get any better than this.”
    A pessimist is afraid the optimist is right.
    With the US Swamp, both are correct.

    ReplyDelete
  9. An optimist says “it doesn’t get any better than this.”
    A pessimist is afraid the optimist is right.
    With the US Swamp, both are correct.

    ReplyDelete
  10. Don, the H.E.Bailey Turnpike in Oklahoma has been there since 1964, and if you travel on it you'll notice that when it ends, the road gets good.

    ReplyDelete
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