UPDATE, October 28 - ENR ran a story on our memo today, as did CNBC. Apparently it has also been published on IJ Online.

UPDATE, October 24 - The memo, "Investing in Infrastructure Projects as Conduits for Economic Stimulus," was submitted to Chairman Bernanke, Secretary Paulson, and various members of Congress earlier this morning.

October 21, 2008 - Investments in infrastructure channelled through state and local governments could be an effective fiscal stimulus package for the American economy. A national network of university professors affiliated with the Leadership and Management in Engineering and Construction Working Group is now working on recommendations for the establishment and administration of an infrastructure stimulus program. In addition, the Working Group is compiling a list of projects that are approved, permitted, and waiting for capital and that could become effective conduits of fiscal stimulus dollars.

One of the main alternative proposals for fiscal stimulus (other than infrastructure spending) would be some form of tax rebate or cashable check sent directly to citizens. Our Working Group is concerned that such a program would either (a) result in people saving the money and not spending it, or (b) buying consumer goods with the money such tat it would ultimately go straight to China (which would not lead to re-circulation in America). On the contrary, if done well, an infrastructure investment program would result in a much more enduring form of public capital, fostering both spending and job creation in the short-term and boosting productivity in the long-term.

One of the reasons that policy makers are putting forward not to invest in the nation's infrastructure as fiscal stimulus is that shaping, approving, planning, and developing infrastructure projects takes too long and critics say that it does not create new jobs and spending fast enough. While this may have been true during the Great Depression era, it is simply not true today at a time when hundreds billions of dollars of infrastructure projects across America have already been approved but are sitting "on the shelf" due to fuding shortfalls.

To demonstrate that a considerable volume of pre-approved projects exist, our Working Group is compiling a list of permitted, approved infrastructure projects throughout America that could be ready for financing in the next 30 days. We are focused on adding to the list only those projects that could add real value to the economy, say, by solving a serious congestion bottleneck, or by creating real jobs and spending. The list will be submitted to political and administrative leaders in Washington later this week with a memo advising on next steps to prioritize projects on the list from the perspective of maximizing economic stimulus.

This idea for the master list evolved out of meetings held at a conference at Lake Tahoe in California over the weekend where several participants committed to engage in new thinking, research, and policy advice pertaining to the concept of infrastructure as a new middle-class fiscal stimulus package.

The eight public and private Universities involved in the Working Group include:

• Clemson University
• University of Colorado at Boulder
• Columbia University
• University of Illinois at UC
• Medical University of South Carolina
• University of Pennsylvania
• Virginia Tech
• University of Wisconsin at Madison
• Stanford University

Posted by rjorr at October 28, 2008 11:25 AM