Re:We've Built Cities We Can't Afford
by toomuchtodo on Saturday April 18, 2020 @02:54PM
(#22910142)
> That’s probably the first of many infrastructure debts coming due
The problem isn't related to infrastructure alone. US debt is already above $24 trillion [1]. The Federal Reserve just put $6 trillion on its balance sheet [2] that is unlikely to ever be unwound. We've already spent far into the future. It's important to allocate capital intelligently in the near term to ensure disaster is averted when defaults occur en masse decades from now. I'd rather fix all of our existing infrastructure that gets a D+ rating [3] and then default on that debt in the future; we still get to keep what has already been built. The debt is "funny money".
A better title, with more weight towards the financial situation, would've been "We've Built A Civilization We Can't Afford." We have to stop kicking the can, but you need leaders with the fortitude to tackle these painful issues, and an electorate that will support them. Is that likely? I wouldn't bet my own money on that.
The problem isn't related to infrastructure alone. US debt is already above $24 trillion [1]. The Federal Reserve just put $6 trillion on its balance sheet [2] that is unlikely to ever be unwound. We've already spent far into the future. It's important to allocate capital intelligently in the near term to ensure disaster is averted when defaults occur en masse decades from now. I'd rather fix all of our existing infrastructure that gets a D+ rating [3] and then default on that debt in the future; we still get to keep what has already been built. The debt is "funny money".
A better title, with more weight towards the financial situation, would've been "We've Built A Civilization We Can't Afford." We have to stop kicking the can, but you need leaders with the fortitude to tackle these painful issues, and an electorate that will support them. Is that likely? I wouldn't bet my own money on that.
[1] https://www.thebalance.com/national-debt-by-year-compared-to...
[2] https://fred.stlouisfed.org/series/WALCL
[3] https://www.infrastructurereportcard.org/