Physical Address

304 North Cardinal St.
Dorchester Center, MA 02124

Tag Barack Obama

Obama administration sells transit out to protectionists (again)

I’m not sure how I missed this (actually, I have an idea – more on that in a minute), but back in February the Federal Transit Administration issued the following warning about strengthened “Buy America” transit procurement protectionism: Congress and the Obama Administration asked Americans to provide $787 billion to help avoid an economic catastrophe and restore and modernize America’s infrastructure.  In return, the Federal Government asks recipients of Recovery Act funds to be held accountable to the American public by using these resources to maximize opportunities to put Americans back to work and to support our domestic manufacturing industry. In order to support this goal, the Federal Transit Administration (FTA) will not consider any requests for a public interest waiver of FTA’s Buy America regulation for Recovery Act projects.  If issued, such waivers would allow recipients of Recovery Act funds to procure steel, iron, or manufactured products, including rolling stock, that are not produced or manufactured in the United States.  I will not waive Buy America for Recovery Act projects because such action would undermine the very purpose and intent of the Recovery Act—to preserve and create jobs in America.  In addition, FTA will continue to carefully scrutinize requests for waivers based on non-availability to determine whether suitable American-made alternatives exist, and if none do, whether the funds can be used in an alternative manner that fulfills the goals of the Recovery Act.  Similarly, FTA will examine requests for cost-differential waivers to determine whether the cost savings justifies the loss of American jobs, especially in critical manufacturing sectors.  By necessity, FTA will extend existing, standing waivers—for products exempted by the Federal Acquisition Regulation, microprocessors and microcomputers, and small purchases—to Recovery Act-funded procurements, although I encourage recipients to use their best efforts to carry out the intent of Congress and the Obama Administration […]

“Buy American” drives up cost of transit

by Stephen Smith As if America’s public transportation networks weren’t hobbled enough by union wages and pensions, the Obama administration’s “Buy American” pandering is adding to the burden. One streetcar line in Houston has been sent back to the drawing board because it didn’t comply with purchasing provisions attached to federal money: The Federal Transit Administration told Metro officials, Mayor Annise Parker and local members of Congress Wednesday that the process Metro used to award a rail car contract violated federal law and “Buy America” requirements intended to promote American employment. To qualify for federal funds on the North and Southeast lines, the FTA said, Metro must cancel its contract with a Spanish company, Construcciones y Auxiliar de Ferrocarriles, and solicit new proposals for a purchase involving up to $205 million in federal money. Meanwhile, Transportation Secretary Ray LaHood is pushing for all federal rail contracts to adhere to Buy American provisions, with “comparable mandates for highways.” (Though obviously this doesn’t apply to the cars running on them, and I’d imagine that the physical properties of asphalt and concrete favor local highway construction companies anyway.) These mandates have had some success in bringing manufacturing home – for the first time in 60 years streetcars are being built in America – but I have to wonder, at what cost? Just something to think about when people try to argue that transit is too expensive to ever be viable. Edit: As a few commenters have pointed out, “Buy American” is much older than the Obama administration, and indeed dates back to at least 1982, although I’m curious as to how domestic vs. foreign procurement decisions have changed since then, as the law allows for quite a few waivers.

Obama’s genius high-speed rail plan

by Stephen Smith Just in case you were under the impression that Obama’s high-speed rail commitment was genuine, the Boston Globe would like to disabuse you of that notion: The railroad tracks from Boston to Washington – the busiest rail artery in the nation, and one that also carries America’s only high-speed train, the Acela – have been virtually shut out of $8 billion worth of federal stimulus money set aside for high-speed rail projects because of a strict environmental review required by the Obama administration. Because such a review would take years, states along the Northeast rail corridor are not able to pursue stimulus money for a variety of crucial upgrades. Instead, the $8 billion is going to be split up to ten ways amongst other regions, such as California, the Gulf Coast, and the “Chicago Hub.” I love the irony of environmental standards stopping the Obama administration from making the one high-speed rail investment that has any chance of getting people out of their cars. Originally posted on my blog.

“Misbuilding” the Future, Again…

From "Highway to hell revisited", a Financial Times article by Christopher Caldwell: The Highway Act probably has more defenders than detractors. But Mr Obama should be among the latter. The act, which budgeted $25bn in federal money to build 41,000 miles of motorway, exacerbated the very problems Mr Obama has been most eager to solve – spoliation of the environment, dependence on foreign oil, overburdening of state and local budgets, abandonment of the inner-city poor and reckless speculation in real-estate development, to name a few. The article goes on to discuss the history of the Highway act of 1956, some of the problems it caused, and critiques of the sprawl caused by the dangerous feedback-loop created by over allocating resources to infrastructure.  I recommend reading the whole article, which concludes: The infrastructure network that came out of the Highway Act had higher overheads than the one it replaced. It became a bottomless pit of spending. The largest building project in Mr Obama’s Recovery Act is $27bn for roads, and there have been no complaints that the government will have a hard time finding things to spend it on.  The US has big economic problems. But they have been made worse, and harder to resolve, by a half-century in which, at federal urging, the country was misbuilt. There is an inherent bias in favour of government projects. The successes can be mythologised through commemoration, goading future generations to imitate them. The failures are fixable only through equally extensive projects to undo them. This makes it easy to forget that there is no social or economic problem so big that a poorly targeted government intervention cannot make it worse. On the subject of “misbuilding”, this Onion video is the funniest thing I’ve seen in a while, and is pretty much how I […]

President Obama on Jane Jacobs and Cities

Without getting too political on inauguration day, I’d like to share a positive video featuring our new President that urbanists should appreciate, regardless of political persuasion: Let’s hope President Obama keeps Jane Jacobs’ lessons of spontaneous order from The Death and Life of Great American Cities in mind as he makes economic decisions. While on the subject of Jane Jacobs, Sandy Ikeda discusses Jane Jacobs’ thoughts on poverty from The Economy of Cities (1969). [hat tip for the video: Vince Graham]

Uncomfortable truths about the progressive legacy

by Stephen Smith Yesterday I was listening to the pre-inaugural concert at the Lincoln Memorial on the radio, and one of the speakers said something that struck me as emblematic of the challenges that Barack Obama faces, though I doubt she realized the ironic significance. She was praising Theodore Roosevelt’s conservationist legacy as a model for Obama, with some quotes from him at the Grand Canyon or Yosemite or some other celebrated national park, though she only touched on a small sliver of Roosevelt’s environmental legacy. He definitely did cherish the environment; a timeline of his life shows that in early April 1903 he “commune[d] with deer while writing letters in Yellowstone, WY.” He was indeed a conservationist, as were many progressives at the time. But the progressives were also something else – something that today’s progressives would do well to remember: ardent planners whose plans often had grave unforeseen consequences. Just after his time communing with the deer at Yellowstone, Roosevelt traveled to St. Louis to address the 1903 Good Roads Convention. The “good roads” movement dated back to before the automobile rose to prominence, and was formed to agitate for improved roads for bicyclists and farmers. But around the time of Roosevelt’s speech, the movement was hijacked by the budding auto-industrial complex. Unwilling or unable to compete on their own against mass transit, the automakers, highway engineers, and road contractors sought for the state to both acquire the rights of way necessary for the roads, and to pay for them to be paved – an advantage the streetcars and railroads did not generally have. Not wanting to appear to be too blatant in their rent seeking, these interests lobbied the government indirectly, giving organizations like the AAA money in exchange for influence and seats on their boards. The […]

Urban[ism] Legend: Creating Jobs With Infrastructure

This post is part of an ongoing series featured on Market Urbanism called Urbanism Legends. The Urbanism Legends series is intended to expose many of the myths about development and Urban Economics. (it’s a play on the term: “Urban Legends” in case you didn’t catch that) Last week President-elect Obama announced some details of his economic stimulus package: Second, we will create millions of jobs by making the single largest new investment in our national infrastructure since the creation of the federal highway system in the 1950s. We’ll invest your precious tax dollars in new and smarter ways This further taxpayer subsidization, beyond currently insufficient highway revenue sources, of sprawl and auto-dependency seems to contradict Obama’s promise of “green jobs”. As Tyler Cowen remarks, “for better or worse you can consider the opposite of a carbon tax.” Furthermore, the Obama plan intends to fund the stimulus directly to states, as opposed to metro areas, which have historically received almost two-thirds of the funds directly. Certainly, Obama’s plan is not an urbanism-friendly plan, yet I consistently hear urbanists subscribing to and spreading the myth that jobs can be created by spending on infrastructure, and that these jobs will lead to economic recovery. Even if the job creation myth were true, and could stimulate the economy immediately, you would think urbanists would not sacrifice urbanist ideals for the sake of short-term recovery through their commitment to so-called progressive ideology. In his enduring 1961 classic, Economics in One Lesson, Henry Hazlitt addresses the long-standing myth about “creating jobs” through public works projects: A bridge is built. If it is built to meet an insistent public demand, if it solves a traffic problem or a transportation problem otherwise insoluble, if, in short, it is even more necessary to the taxpayers collectively than the things for which […]

How McCain or Obama Can Permanently Eliminate the Gas Tax, Cut Pork and Help the Environment

John McCain and Hillary Clinton have both supported the idea of a “Gas Tax Holiday“. The whole idea of a Holy Day to celebrate the worship of socialized transportation catered by Santa Clinton/McCain seems pretty absurd to me. Nonetheless, they expect pandering to gas-addicted voters to pay off in their election hopes. Unfortunately, such a gas holiday would burden the deficit, incentivize the burning of fossil fuels, and further socialize our transportation system. Highway advocates currently cling to arguments that roads are more “free-market” than transit because the costs of maintaining the highways are paid by the user through gas taxes and user fees. That is a myth to be debunked in future posts, but the argument would be void during McCain’s new “holiday”. And, with future tax money footing the bill instead of gas users, we would have a full blown transfer of wealth from the responsible taxpayers who don’t depend on petroleum to the gas guzzlers and petroleum industry. I propose a more free-market solution at the federal level – get out of the transportation business altogether! The federal government would end the gas tax permanently, but at the same time deed the entire federal highway system over to the individual states where the highways are located, and abolish the Department of Transportation over a span of a few years. The individual states would be free to handle their transportation as they see fit, as long as the they do not diminish the military’s ability to mobilize forces for defense. States could pay for maintenance of the assets in ways that best suit them, whether it be a gas tax, tolls, property taxes or states could actually raise money through complete privatization of the new assets. Besides easing the burden on the deficit, getting the federal government out […]

Trending now

gentrification
Only 2 Ways to Fight Gentrification (you’re not going to like one of them)
The problem with “public” transportation
The Great American Streetcar Myth
O’Toole Under More Fire