Tuesday, September 7, 2010

Barack Obama announces $50bn infrastructure plan

President Obama: "We used to have the best infrastructure in the world, and we can have it again"

President Barack Obama has called for a new comprehensive infrastructure plan as part of efforts to jump-start the spluttering US economy. The plan will invest about $50bn (£32.5bn) in roads, railways and airports as well as high-speed rail and the creation of an infrastructure bank. US infrastructure has long been considered underfunded and receives poor grades from government agencies.  The move comes amid signs that the US economy is faltering. On Friday, the US Labor Department announced that the US economy had lost a further 54,000 jobs, while the unemployment rate rose to 9.6%, from 9.5% in July. "Over the next six years, we are going to rebuild 150,000 miles of our roads - enough to circle the world six times," Mr Obama told an event in Milwaukee marking the Labor Day holiday in the US. "We're going to lay and maintain 4,000 miles of our railways - enough to stretch coast-to-coast. We're going to restore 150 miles of runways and advance a next generation air-traffic control system to reduce travel time and delays for American travellers - something I think folks across the political spectrum could agree on."

"All of this will not only create jobs now, but will make our economy run better over the long haul," Mr Obama add. Mr Obama also called for the creation of a permanent infrastructure bank that would focus on funding national and regional infrastructure projects. The proposals would require congressional approval, which analysts say, is uncertain amid concerns about the size of the federal deficit. Senate Republican Leader Mitch McConnell said the plan "should be met with justifiable scepticism" because it would raise taxes. The infrastructure announcement marks the start of a week in which Mr Obama will focus on the economy, seen as the most important issue for voters in Novembers congressional elections. On Wednesday the president travels to Cleveland, Ohio, where he is expected to unveil new tax proposals. On Friday he will speak in Washington.


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