American financial blogger Barry Ritholtz believes that the country needs to build its way out of its economic crisis. A bank strategist turned financial pundit, who rose to prominence by correctly calling the US house price crash, Ritholtz is known for not mincing his words. And when it comes to America's infrastructure, he is particularly forthright: "Our infrastructure is shockingly bad. So bad that it's not an exaggeration to declare it a national disgrace, a global embarrassment and a massive security risk."
Not that long ago, America's infrastructure was the envy of the world, says Ritholtz on his Washington Post blog. But since then, standards have slipped.
"Our interstate highway system is in disrepair; our bridges are rusting away, with some collapsing now and then. The electrical grid is a patchwork of jury-rigged fixes, vulnerable to blackouts and foreign cyberattacks. The cell system of the United States is a laughing stock versus Asia's or Europe's coverage."
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Indeed, the American Society of Civil Engineers recently gave the country's infrastructure a "D", says Ritholtz. To get an "A" would require a five-year infrastructure development of $2.2 trillion.
That's a lot of money but it would bring a number of benefits. In the short term, the investment would provide a boost to the economy, and also "create a lasting effect by creating tools and platforms that the private sector can build upon".
Spending $2.2 trillion would increase the US government's deficit, he concedes. But investing in infrastructure would be far more productive than "giving trillions of dollars to reckless bankers, tax cuts for the wealthiest Americans, or a war of choice in Iraq".
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