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Showing posts with label Infrastructure. Show all posts
Showing posts with label Infrastructure. Show all posts

Tuesday, April 17, 2018

USA: Disturbing facts about the US Infrastructure and a variety of other problems which are getting worse by the day

The US infrastructure and the country is in dire need of repair
Someone once said that you can tell a lot about a nation by the condition of the infrastructure.

So what does the US infrastructure say about America?  It says that America is in a very advanced state of decay.

At this point, much of America is being held together with spit, duct tape and prayers.  Roads are crumbling and thousands of its bridges look like they could collapse at any moment.  The power grid is ancient and over a trillion gallons of untreated sewage is leaking from aging sewer systems each year.

US  airports and seaports are clogged with far more traffic than they were ever designed to carry.

Approximately a third of all of the dam failures that have taken place in the United States since 1874 have happened during the past decade.  The national parks and recreation areas have been terribly neglected and the US railroads system is a bad joke.

Recent hurricanes which hit America showed how vulnerable the  levees and dikes are, and drinking water systems all over the country are badly outdated.  Sadly, at a time when we could use significant new investment in infrastructure,  the spending on infrastructure is actually way down.

Back during the 50s and the 60s, the U.S. was spending between 3 and 4 percent of GDP on infrastructure.  Today, that figure is down to about 2.4 percent.  But the US does not have any extra money to spend on infrastructure because of reckless spending and because of the massive amount of national debt that it has accumulated.

Here are 21 facts about America’s failing infrastructure

#1 The American Society of Civil Engineers has given America’s crumbling infrastructure an overall grade of D.
#2 There are simply not enough roads in the United States today.  Each year, traffic jams cost the commuters of America 4.2 billion hours and about 2.8 million gallons of gasoline.
#3 It is being projected that Americans will spend an average of 160 hours stuck in traffic annually by the year 2035.
#4 Approximately one-third of all roads in the United States are in substandard condition.
#5 Close to a third of all highway fatalities are due “to substandard road conditions, obsolete road designs, or roadside hazards.”
#6 One out of every four bridges in America either carries more traffic than originally intended or is in need of repair.
#7 Repairing all of the bridges in the United States that need repair would take approximately 140 billion dollars.
#8 According to the U.S. Chamber of Commerce, our decaying transportation system costs the U.S. economy about 78 billion dollars annually in lost time and fuel.
#9 All over America, asphalt roads are being ground up and are being replaced with gravel roads because they are cheaper to maintain.  The state of South Dakota has transformed over 100 miles of asphalt roads into gravel roads, and 38 out of the 83 counties in the state of Michigan have transformed at least some of their asphalt roads into gravel roads.
#10 There are 4,095 dams in the United States that are at risk of failure.  That number has risen by more than 100 percent since 1999.
#11 Of all the dam failures that have happened in the United States since 1874, a third of them have happened during the past decade.
#12 Close to half of all U.S. households do not have access to Public bus or rail transit.
#13  The US's aging sewer systems spill more than a trillion gallons of untreated sewage every single year.  The cost of cleaning up that sewage each year is estimated to be greater than 50 billion dollars.
#14 It is estimated that rolling blackouts and inefficiencies in the U.S. electrical grid cost the U.S. economy approximately 80 billion dollars a year.
#15 It is being projected that by the year 2020 every single major container port in the United States will be handling at least double the volume that it was originally designed to handle.
#16 All across the United States, conditions at many of our state parks, recreation areas and historic sites are deplorable at best.  Some states have backlogs of repair projects that are now over a billion dollars long….
#17 Today, the U.S. spends about 2.4 percent of GDP on infrastructure.  Meanwhile, China spends about 9 percent of GDP on infrastructure.
#18 In the United States today, approximately 16 percent of our construction workers are unemployed.
#19 China has plans to build 55,000 miles of highways by the year 2020.  If all of those roads were put end to end, it would be longer than the total length of the entire U.S. interstate system.
#20 The World Economic Forum ranks U.S. infrastructure 23rd in the world, and we fall a little bit farther behind the rest of the developed world every single day.
#21 It has been projected that it would take 2.2 trillion dollars over the next 5 years just to repair our existing infrastructure.  That does not even include a single penny for badly needed new infrastructure.

So where did the US go wrong?

Well, one of the big problems is that the US have become a very materialistic "me first" society that is obsessed with short-term thinking.  Investing in infrastructure is something that has long-term benefits, but these days Americans tend to only be focused on what is happening right now and most politicians are only focused on the next election cycle.

Another major problem is that there is so much corruption and waste in the US  system these days. Special interest groups and corporations have basically total control over the US political system

The government certainly spends more than enough money, but very little of that money is spent wisely. Too much is going into military spending, without questions asked; No one in America seems to have figured out that the US is not obliged to be the global cop to keep the weapons industry happy.

And sadly, the US simply does not have the money that it  needs for infrastructure because of all the debt that it has have piled up.

Unless the Trump Administration puts their money where their mouth is ( which they have not done so far) the federal government, state governments and local governments are all struggling to stay afloat in an ocean of red ink, and unfortunately that means that spending on infrastructure is likely to be cut even more in the years ahead.

It is high time everyone in America wakes up to the reality that "business as usual" is not working anymore and that radical change is needed. So far no one has seriously stepped up to the plate. 

EU-Digest

Thursday, January 25, 2018

EU: More growth and jobs: EU invests €873 million in clean energy infrastructure

Europe's transition to a clean and modern economy is the goal of the Energy Union, a priority of the Juncker Commission. It is now becoming the new reality on the ground, and one important building block is adapting the European infrastructure to the future energy needs. Properly interconnected electricity lines and gas pipelines form the backbone of an integrated European energy market anchored on the principle of solidarity. Thus, supporting these 17 selected electricity and gas projects , signals Europe's willingness to upgrade and make the European energy system more competitive that will ultimately deliver cheaper and secure energy to all European consumers.

The EU funding for the chosen projects comes from the Connecting Europe Facility (CEF), the European support programme for trans-European infrastructure.

Commission Vice-President for Energy Union Maroš Šefčovič said: "Once more we demonstrate that cooperation and solidarity pays off and that the Energy Union is becoming a reality with tangible impact on the ground. These are important projects with major cross-border benefits and by implementing them we strengthen energy resilience of EU Member States. The Connecting Europe Facility has yet again shown tremendous added value in the modernisation of the European economy."

Commissioner for Climate Action and Energy Miguel Arias Cañete said: "The construction of the Biscay Gulf France-Spain interconnection marks an important step towards ending the isolation of the Iberian Peninsula from the rest of the European energy market. Only a fully interconnected market will improve Europe's security of supply, reducing the dependence of single suppliers and giving consumers more choice. An energy infrastructure which is fit for purpose is also essential for renewable energy sources to thrive and for delivering on the Paris Agreement on climate change."

For the complete EU Commission Press release, click here

Saturday, September 9, 2017

US Infrastructure: How Trump Could Rebuild America - by Lenny Mendonca & Laura Tyson

In the United States today, with partisan polarization at record levels, there is still at least one policy goal on which there is broad consensus, not only among Republicans and Democrats, but also among business and labor leaders, states and cities, and ordinary citizens: infrastructure.

The US has been short-changing infrastructure for years. Historically, federal, state, and local governments have together invested about 2.5% of GDP in non-defense infrastructure assets. But, over the last 35 years, federal investment as a share of GDP has dropped by more than half.

For a long time, state and local governments were able to cover the shortfall, increasing their contribution to three quarters of total spending. But when the Great Recession hit, states and cities were forced to slash their budgets. As a result, in the second quarter of this year, total public expenditure on infrastructure fell to an estimated 1.4% of GDP, the lowest share on record.

This is all the more worrying, given the already-poor state of US infrastructure, which earned a grade of D+ from the American Society of Civil Engineers in its 2017 quadrennial report. Almost 20% of US highways are in disrepair. The costs and consequences of deferred maintenance are apparent everywhere, and almost every city and state has its horror stories: dysfunctional subways in New York City, lead-contaminated drinking water in Flint, Michigan, the near-collapse of a major dam in Oroville, California.

The report estimates that restoring US infrastructure to “a state of good repair” would cost $4.6 trillion between 2016 and 2025. That is $2.1 trillion more than has been committed so far. Developing new funding sources for infrastructure investment is therefore critical.

Read more: How Trump Could Rebuild America by Lenny Mendonca & Laura Tyson - Project Syndicate

Thursday, August 31, 2017

Hurricane Harvey Energy Crisis Could Be Nightmare For U.S. Economy- by Ellen R. Wald

On Tuesday, August 29, over 26 inches of rain fell in Port Arthur, Texas. The 50,000 residents of that city, north and east of Houston, are suffering severe flooding and personal loss. Port Arthur is also the home of the largest refinery in the United States, Motiva, which has been shut down due to massive flooding. In addition, the nearby Valero Energy VLO -0.45% and ExxonMobil XOM +0.30% refineries were shut and the Colonial Pipeline (distributing refined products across the Southeast and north to Tennessee) has been disrupted. About 22% of U.S. refining capacity is offline due to the natural disaster. All told, it now appears that the impact Harvey will have on the energy industry is worse than expected and could very well, in a worst case scenario, lead to a serious macro-economic problem.

Read mor: Hurricane Harvey Energy Crisis Could Be Nightmare For U.S. Economy

Sunday, August 27, 2017

USA:Infrastructure neglect by Federal and State governments major cause of Texas flooding caused by hurricane Harvey

USA Infrastructure the root of all evil
Arcadis, the Dutch consultancy, recently released an analysis of the world’s built assets, aka the value of physical structures, buildings, and infrastructure.

Basically, it’s all the money a country spends publicly or privately on physical development, from “infrastructure investment, construction, investments in plant and machinery and improvements in ‘natural assets’ such as land reclamation.”

The study relies data from the World Bank, the International Monetary Fund, and from individual countries’ statistics offices.

It’s an interesting snapshot since it deals only with the stuff that has tangible physical value, rather than investments in less tangible stuff like intellectual property or software. More money spent on improving a country’s built environment, from new subway systems to flood-proofing coastlines, means stronger and more productive cities, which contribute to a country’s overall growth.

All in all, the report pegs the value of those physical assets–computed for 32 of the top-spending countries–at a whopping $218 trillion worldwide. So how does the US stack up against other countries? In terms of straight value, we’ve been eclipsed by China over the past two years:

While Arcadis points out that Qatar bowls every other country over when you look at it per capita value, that’s pretty unsurprising for a small country investing massively in its cities and infrastructure.

By that metric, the US doesn’t even make this list.  The US is actually slipping down in the rankings in general.

Arcadis says that the problem in the US isn’t real estate–the US is doing “solid” in terms of private assets like buildings. But US is in a mess when it comes to infrastructure, especially in high-growth cities that contribute to the overall productivity of the country.

“There is increasing concern about the negative impact an underperforming built environment has on the economic prosperity of US cities,” Arcadis’ Julien Cayet writes, citing a survey by Politico that showed that many US mayors say better infrastructure is the biggest hurdle in their cities.

In other words, if cities don’t figure out a way to upgrade their roads, parks, and transit systems, their growth is going to stall out.

One other problem the US is facing? Severe weather. Arcadis continues:
"The situation in the US is further complicated by the consequences of severe weather. From drought in California to hurricanes in New Orleans and New York – there is an urgent need to build more resilient cities to protect the public and the economy from these devastating events. The economic impact of Hurricane Sandy alone is estimated at over $70 billion".
Sadly, accepting the existence of climate change doesn’t necessarily mean politicians will be ready to spend on resilient infrastructure, unless the number of Harvey type storms increase .

EU-Digest

Wednesday, August 9, 2017

Tax Systems - money is not determinating factor: The happiest countries in the world also pay a lot in taxes

The US Tax System needs an overhaul
The happiest countries in the world in 2017 are prosperous Western-style liberal democracies.

Their populations are, in many cases, largely homogeneous. And they also have something else in common: They each pay a lot in taxes.

According to the United Nations' latest World Happiness Report, as covered by CBS News, the top 10 happiest countries are:
1. Norway
2. Denmark
3. Iceland
4. Switzerland
5. Finland
6. Netherlands
7. Canada
8. New Zealand
9. Australia
10. Sweden

Report co-author Jeffrey Sachs, who is also the director of the Sustainable Development Solutions Network, tells CBS that "happiness is a result of creating strong social foundations," and that if other nations prioritized "social trust" and "healthy lives," they could also find that their citizens become more content.

The top three happiest countries, Norway, Denmark and Iceland, are all among the highest taxed countries in the Organization for Economic Cooperation and Development (OECD), in terms of total tax revenue as a percentage of GDP. The widely enjoyed social benefits residents get in exchange for their taxes, such as universal health care, access to education and subsidized parental leave, could have something to do with the "strong social foundations" touted by Sachs.

Note EU-Digest: These countries are happy, mainly for all the services they are getting in exchange for paying high taxes. Specially in the area of healthcare and low pharmaceutical costs, obviously also by enjoying great infrastructural advantages and obviously modern public transportation systems. In America right-wing politicians (mainly Republicans) have figured out that by telling the taxpayers they pay the lowest taxes in the world, it will make  corrupt practices by them easier. Unfortunately over time this made the US taxpayer the big loser.

Read more: The happiest countries in the world also pay a lot in taxes

Thursday, July 27, 2017

US Infrastructure: Decaying infrastructure taking a toll on America

America's infrastructure is in a state of crisis. Roads and train lines are old, dangerous and cost the country billions of dollars in economic growth. Trump wants to repair damages but he is at the mercy of investors.

The summer of hell began for New Yorkers last Monday. Beginning at four o'clock in the afternoon people hurried home from work, clogging midtown Manhattan's Pennsylvania Station.

 Over 600,000 people trek to Manhattan daily from faraway places like New Jersey and Long Island, entering the city via Penn Station. More people transit through Penn Station than all three of New York's airports: JFK, LaGuardia and Newark. Yet on Monday many tracks were shut down for the summer so the city can begin tackling urgently needed repairs.

During his campaign, Trump promised trillions of dollars to tackle this issue. Yet a look at the budget says otherwise: The government will spend only $200 billion on the infrastructure package. The remaining $800 billion must come from states and municipalities - no major problem for wealthy states. But the rural areas remain in disrepair.

Decaying infrastructure taking a toll on America | Business | DW | 17.07.2017