[Congressional Record Volume 157, Number 176 (Thursday, November 17, 2011)]
[House]
[Pages H7718-H7719]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CREATE JOBS AND REDUCE THE DEFICIT THROUGH LARGE-SCALE INFRASTRUCTURE
INVESTMENTS
The SPEAKER pro tempore. The Chair recognizes the gentleman from New
York (Mr. Higgins) for 5 minutes.
Mr. HIGGINS. Mr. Speaker, we are approaching the deadline for the
supercommittee to propose a debt reduction plan. Most economists are in
agreement on what we need to do: in the long term, reduce the debt by
at least $4 trillion over 10 years through a mix of added revenue and
reduced spending. And in the short term, make immediate investments to
create jobs and to reduce unemployment.
I encourage the supercommittee not to ignore the second of those
priorities because now is the perfect time to create jobs by making
large-scale investments in American infrastructure. Since World War II,
every economic contraction was followed by a period of economic
expansion; but although economists tell us the recession has ended, we
have had no economic expansion. Unemployment remains at 9 percent, and
economic growth is projected to be moderate at best. The reason our
economy is taking so long to recover is because this recession was more
severe than any since the Great Depression, something that seemingly
few in government, finance, or academia realized at the time.
Because of the historic severity of this recession, American
households, local and State governments--even European governments--
find themselves in debt like never before. Consequently, consumer
demand is and will be depressed while households and governments reduce
spending. And when demand falls, businesses don't hire. It is that
simple.
Some believe this period of decreased demand will last 5 to 7 years.
A policy of fiscal austerity will make matters only worse. We only have
to look back at the United States in 1937, Japan in the 1990s, and
Europe last year and this year to understand that when consumers are
not spending, the worst thing a government can do is stop spending
itself.
The New America Foundation report makes the case that investing $1.2
trillion over the next 5 years in rebuilding our infrastructure will
create 22 million jobs--22 million jobs over a 5-year period. That is
more than the 22 million jobs that were created under President
Clinton. And the job creation of the 1990s raised so much revenue that
our Federal budget reached record surplus. Times were so good that we
were debating, at that time, the implications of repaying the entirety
of the
[[Page H7719]]
Nation's debt. The lesson is that the greatest debt-and-deficit
reduction tool is job creation. That is why the supercommittee must
include significant job creation components in its recommendations.
Let me add, Mr. Speaker, that our infrastructure is sorely in need of
massive investment. Our roads, bridges, airports, energy grid, and
water infrastructure are all in horrible condition. The World Economic
Forum ranks America 23rd in infrastructure quality. The American
Society of Civil Engineers gives our infrastructure a D grade.
Transportation for America reports that there are 63,000 structurally
deficient bridges in our country--including 99 in my community in
western New York. The Chamber of Commerce has said that unless we
repair our infrastructure, we will suffer $336 billion in lost growth
over the next 5 years.
To my colleagues who believe that we can't afford to make investments
at this time, I say we can't afford not to. Delaying the repair or
replacement of infrastructure by just 2 years can increase the cost of
doing those repairs by a factor of five.
I also note that we just spent $62 billion nation-building in Iraq
and $73 billion nation-building in Afghanistan. There was no objection
then to borrowing to finance that nation-building, nor should there be
objection now when we're proposing to do nation-building right here at
home.
And given the current economic conditions, financing American
infrastructure projects will never be cheaper. Interest rates are
extremely low, the cost of labor and materials are low due to lack of
demand, and the equipment is cheap because it is idle. Repairing and
expanding our infrastructure is work that we need to do to stay
globally competitive, and it will never be cheaper to do it than it is
today. Quite simply, there is much work to be done, and a lot of
Americans need to do work. Now is the best time to do that.
Mr. Speaker, a large scale, $1.2 trillion, 5-year investment in
infrastructure would create 27 million American jobs that cannot be
shipped overseas. It will reduce unemployment, it will reduce the
deficit and, in the end, we will have an infrastructure our country
needs and our country deserves.
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