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American Made: Why Making Things Will Return Us to Greatness by Dan Dimicco
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Affordable Care Act / Obamacare, American energy revolution, American Society of Civil Engineers: Report Card, Bakken shale, barriers to entry, Bernie Madoff, carbon footprint, clean water, crony capitalism, currency manipulation / currency intervention, David Ricardo: comparative advantage, decarbonisation, fear of failure, full employment, Google Glasses, hydraulic fracturing, invisible hand, job automation, knowledge economy, laissez-faire capitalism, Loma Prieta earthquake, manufacturing employment, oil shale / tar sands, Ponzi scheme, profit motive, Report Card for America’s Infrastructure, Ronald Reagan, Silicon Valley, smart grid, smart meter, sovereign wealth fund, The Wealth of Nations by Adam Smith, too big to fail, uranium enrichment, Washington Consensus, Works Progress Administration
Gerry Smith, “Internet Speed in United States Lags behind Many Countries, Highlighting Global Digital Divide,” Huffington Post, September 10, 2012, http://www.huffingtonpost.com/2012/09/05/internet-speed-united-states-digital-divide_n_1855054.html. 14. “2013 Report Card for America’s Infrastructure,” American Society of Civil Engineers, March 19, 2013, http://www.infrastructurereportcard.org/. 15. “Failure to Act: The Impact of Current Infrastructure Investment on America’s Economic Future,” American Society of Civil Engineers, January 15, 2013, http://www.asce.org/uploadedFiles/Infrastructure/Failure_to_Act/Failure_to_Act_Report.pdf. 16. “2013 Report Card for America’s Infrastructure,” American Society of Civil Engineers, March 19, 2013, http://www.infrastructurereportcard.org/. 17. President Barack Obama, “Barack Obama’s Acceptance Speech,” Democratic National Convention, Denver, Colorado, August 28, 2008, http://elections.nytimes.com/2008/president/conventions/videos/transcripts/20080828_OBAMA_SPEECH.html. 18.
Ross DeVol and Perry Wong, “Jobs for America: Investment and Policies for Economic Growth and Competitiveness,” Milken Institute, January 2010, http://assets1c.milkeninstitute.org/assets/Publication/ResearchReport/PDF/JFAFullReport.pdf. 17. “2009 Infrastructure Report Card,” American Society of Civil Engineers, January 28, 2009, http://www.infrastructurereportcard.org/2009/sites/default/files/RC2009_full_report.pdf. 18. Ibid.; “Failure to Act: The Economic Impact of Current Investment Trends in Water and Waste Treatment Infrastructure,” American Society of Civil Engineers, December 15, 2011, http://www.asce.org/Infrastructure/Failure-to-Act/Water-and-Wastewater/. 19. “2009 Infrastructure Report Card,” American Society of Civil Engineers; Proprietary Analysis by Garten Rothkopf. 20. FAA NextGen 2012 Implementation Report, http://www.faa.gov/nextgen/media/executive_summary_2012.pdf. 21. “2009 Infrastructure Report Card.” 22. “Connecting California 2014 Business Plan,” California High Speed Rail Authority, April 30, 2014, http://www.hsr.ca.gov/docs/about/business_plans/BPlan_2014_Business_Plan_Final.pdf. 23. “2011 Statewide Transportation System Needs Assessment,” Califronia Transportation Commission, October 2011, http://www.catc.ca.gov/reports/2011Reports/2011_Needs_Assessment_updated.pdf. 24.
Kevin Carey, “An Innovative Tech Trio Puts Students in Solid Jobs,” Chronicle of Higher Education, November 20, 2011, http://chronicle.com/article/An-Innovative-Tech-Trio-Puts/129826/. 15. Bureau of Labor Statistics, “Employment, Hours, and Earnings from the Current Employment Statistics Survey (National).” 16. “2013 Report for America’s Infrastructure,” American Society of Civil Engineers, March 19, 2013, http://www.infrastructurereportcard.org/a/#p/grade-sheet/americas-infrastructure-investment-needs. 17. Proprietary analysis by Garten Rothkopf. Chapter 7 1. “Monthly Budget Review—Summary for Fiscal Year 2013,” Congressional Budget Office, November 7, 2013, https://www.cbo.gov/sites/default/files/44716-%20MBR_FY2013_0.pdf. 2. “The Debt to the Penny and Who Holds It,” TreasuryDirect, U.S. Treasury Department, http://www.treasurydirect.gov/NP/debt/current. 3. “Public Pulse: Does Your Opinion Match the Public’s?”
Street Smart: The Rise of Cities and the Fall of Cars by Samuel I. Schwartz
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, active transport: walking or cycling, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, autonomous vehicles, car-free, City Beautiful movement, collaborative consumption, congestion charging, crowdsourcing, desegregation, Enrique Peñalosa, Ford paid five dollars a day, Frederick Winslow Taylor, if you build it, they will come, intermodal, invention of the wheel, lake wobegon effect, Loma Prieta earthquake, Lyft, Masdar, megacity, meta analysis, meta-analysis, moral hazard, Nate Silver, oil shock, Productivity paradox, Ralph Nader, rent control, ride hailing / ride sharing, Rosa Parks, self-driving car, skinny streets, smart cities, smart grid, smart transportation, the built environment, the map is not the territory, transportation-network company, Uber and Lyft, Uber for X, Unsafe at Any Speed, urban decay, urban planning, urban renewal, walkable city, Wall-E, white flight, Works Progress Administration, Yogi Berra, Zipcar
Lots of people have heard of the “Report Card” on America’s infrastructure prepared annually by the American Society of Civil Engineers. (Full disclosure: I’m not only a member of the society but have served on the New York Committee on America’s Infrastructure, which is responsible for assigning grades.) The Report Card gives a grade to sixteen different categories of America’s infrastructure, from aviation to ports to schools to inland waterways, and if you’ve heard of it at all, you probably know that our overall GPA is currently a pretty pathetic D+. That same report estimates the investment needed to bring us up to a passing grade by 2020 at $3.635 trillion—that’s trillion, with a “T.” The largest single component of that number, $1.735 trillion, is surface transportation: roads, highways, transit, and bridges.
NCBW Forum, March 7, 2005. Appleyard, Donald, M. Sue Gerson, and Mark Lintell. Livable Streets. Berkeley, CA: University of California Press, 1981. APTA. Millennials & Mobility: Understanding the Millennial Mindset. Washington, DC: American Public Transportation Association, 2014. ARUP. Urban Mobility in the Smart City Age. London: ARUP, 2014. ASCE. 2013 Report Card on America’s Infrastructure: Roads: Conditions and Capacity. Washington, DC: American Society of Civil Engineers, 2014. Barro, Josh. “Under Pressure from Uber, Taxi Medallion Prices Are Plummeting.” New York Times, November 28, 2014: A1. Barry, Keith. “How Smartphones Can Improve Public Transit.” Wired, April 8, 2011. Bassett, David R., Jr., et al. “Pedometer-Measured Physical Activity and Health Behaviors in U.S. Adults.” Medicine & Science in Sports & Exercise 42, no. 10 (2010): 1819–1825.
That doesn’t mean there’s no risk of any bad outcomes. Given the difficulties most of us have with distinguishing between short-term appetites and long-term good sense, there’s a chance that lower oil prices will lead to some poor decisions on infrastructure investment. Even if the price of oil doesn’t distort investment decisions, it’s not as if we were making the most efficient decisions on infrastructure before. Though there is actually a lot to recommend in the American Society of Civil Engineers’ analysis of the sorry state of all aspects of the country’s infrastructure—we really do need to upgrade our waste-water treatment plants and our internal waterways—the Report Card makes some serious errors in urging greater investment in big parts of the transportation system. Spending hundreds of billions of dollars on expanding and restoring roads when Americans are driving fewer miles each year is a very expensive exercise in nostalgia, one that could easily turn our fifty-year-long mistake into one lasting decades longer.
Success and Luck: Good Fortune and the Myth of Meritocracy by Robert H. Frank
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Amazon Mechanical Turk, American Society of Civil Engineers: Report Card, attribution theory, availability heuristic, Branko Milanovic, Capital in the Twenty-First Century by Thomas Piketty, carried interest, Daniel Kahneman / Amos Tversky, David Brooks, deliberate practice, en.wikipedia.org, endowment effect, experimental subject, framing effect, full employment, hindsight bias, If something cannot go on forever, it will stop, income inequality, invisible hand, labor-force participation, labour mobility, lake wobegon effect, loss aversion, minimum wage unemployment, Network effects, Report Card for America’s Infrastructure, Richard Thaler, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, Rory Sutherland, side project, sovereign wealth fund, Steve Jobs, The Wealth of Nations by Adam Smith, Tim Cook: Apple, ultimatum game, Vincenzo Peruggia: Mona Lisa, winner-take-all economy
We who were born into highly developed countries are thus the lucky beneficiaries of centuries of intensive investment by those who came before us. In recent decades, however, those investments have been depreciating. A 2013 report from the American Society of Civil Engineers estimated that the United States faced a $3.6 trillion backlog in essential maintenance for existing infrastructure.1 Crumbling roads and unsafe bridges are common across the country, as are failing water and sewage systems. Millions live downstream from dams that could collapse at any moment. Countless school buildings are in disrepair. We’ve also done little to expand and improve existing infrastructure. Morocco, a country whose per capita income is roughly a tenth that of the United States, is nearing completion of a 350-kilometer high-speed rail link between Casablanca and Tangier.
., 2015. 25. For an excellent survey of how views about luck differ along the political spectrum, see Dean M. Gromet, Kimberly A. Hartson, and David K. Sherman, “The Politics of Luck: Political Ideology and the Perceived Relationship between Luck and Success,” Journal of Experimental Social Psychology 59 (2015): 40–46. CHAPTER 6: THE BURDEN OF FALSE BELIEFS 1. American Society of Civil Engineers, Report Card for America’s Infrastructure, 2013, http://www.infrastructurereportcard.org. 2. Donna M. Desrochers and Steven Hurlburt, “Trends in College Spending: 2001–2011; A Delta Data Update,” Delta Cost Project: American Institutes for Research, 2014, www.deltacostproject.org/sites/default/files/products/Delta%20Cost_Trends%20College%20Spending%202001–2011_071414_rev.pdf. 3. Robert Hiltonsmith, “Pulling Up the Higher-Ed Ladder: Myth and Reality in the Crisis of College Affordability,” www.demos.org/publication/pulling-higher-ed-ladder-myth-and-reality-crisis-college-affordability. 4.
Viard and Robert Carroll, Progressive Consumption Taxation: The X-Tax Revisited, Washington, DC: AEI Press, 2012. INDEX Abramson, L. Y., 73 According to Jim, 31 adoption, 36, 57, 58 Allen, Paul, 34 Alloy, L. B., 73 Alou brothers, 33 American Dream, the, 4, 145 American Economic Association, 25 American Economic Review, 28, 126, 133, 171 American Enterprise Institute, 127, 171 American Society of Civil Engineers, 87 Anderson, Chris, 47 antlers in bull elk, 116–18, 118 Apotheker, Léo, 53 Apple, 44, 49, 132 Arab Spring, 107 Archilla, Gustavo, 106 artificial intelligence, 70 attention scarcity, 48–49 attribution theory, 77 austerity policies, 134 availability heuristic, 79, 80 baby boomer retirements, 97, 127, 167 Baker Library, 36 Bartlett, Bruce, 90 Bartlett, Monica, 101 Baumeister, Roy, 75 Beatty, Warren, 23 behavioral economics, 69, 70, 96 Bernanke, Ben, 133–35 best seller, xiii, 45 Betamax, 44, 45 birth order effects, 32 birth-date effects: in hockey, 38; in the workplace, 38 Blackstone, 103 Blockbusters, 48 Bloomberg Business, 132 Bonaparte, Napoleon, 7 Boudreaux, Donald, 122 Breaking Bad, 24, 31, 68 British accent, 4 Broderick, Matthew, 24, 68 Brooklyn Dodgers, 142 Brooks, David, 83, 84 Buffett, Warren, 12, 39 Bush, George H.
Getting Back to Full Employment: A Better Bargain for Working People by Dean Baker, Jared Bernstein
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, Asian financial crisis, collective bargaining, declining real wages, full employment, George Akerlof, income inequality, inflation targeting, minimum wage unemployment, new economy, price stability, quantitative easing, Report Card for America’s Infrastructure, rising living standards, War on Poverty
But we will not stop pulling for full employment until we get there and stay there. References Akerlof, George, William Dickens, and William Perry. 1996. “The Macroeconomics of Low Inflation.” Brookings Papers on Economic Activity, Vol. 1996, No. 1, pp. 1-76. http://www.jstor.org/discover/10.2307/2534646?uid=3739584&uid=2&uid=4&uid=3739256&sid=21101919624531 American Society of Civil Engineers (ASCE). 2013. “2013 Report Card for America’s Infrastructure.” http://www.infrastructurereportcard.org/a/#p/home Anderson, Palle and David Gruen. 1995. “Macroeconomic Policies and Growth.” Research Discussion Paper 9507. Sydney: Reserve Bank of Australia. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.200.1174&rep=rep1&type=pdf Appelbaum, Eileen, Thomas Bailey, Peter Berg, and Arne Kalleberg. 2000.
In essence, the higher rate becomes insurance against a tough and intractable problem in modern, advanced economies: the zero lower bound. The 2008 downturn has been enormously costly to the economy simply in terms of lost GDP. If we compare the actual GDP with the projections made by the Congressional Budget Office at the beginning of 2007, before the downturn began, by mid-2013 the economy had lost more than $6 trillion (in 2005 dollars) in output, and it is projected to lose at least another $17 trillion in output compared to its trend path, as shown in Figure 3-1. If the economy sustains a permanently higher level of unemployment because so many workers have lost skills and are unable to re-enter the workforce (or because the Fed believes this to be the case and adjusts its monetary policy accordingly), then the loss over subsequent decades will raise this figure even further.
We have an immediate problem --millions cannot find any or enough work—and we can address this problem with measures that will lead to higher deficits. If in 10-15 years these large deficits are a problem, we can deal with them. History is a guide here. The first President Bush secured a substantial deficit reduction agreement in 1990, and President Clinton did so in 1993. Under President Obama, spending cuts and tax increases have lowered projected 10-year deficits by almost $3 trillion, and the deficit-to-GDP ratio is down from 10 percent in 2009 to 4 percent in 2013 (Kogan and Van de Water 2013). If we’ve done it before we can certainly do it again, though the current dysfunctional Congress does give sensible people cause for worry. One of the most peculiar arguments about deficits is that we must save our children from the phantom menace of future debt tomorrow by severely underinvesting in them today. We must defund Head Start, public schools, universities, libraries – not to mention our own employment opportunities.
Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance by Ian Goldin, Chris Kutarna
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Airbnb, Albert Einstein, AltaVista, Asian financial crisis, asset-backed security, autonomous vehicles, banking crisis, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, bitcoin, Bonfire of the Vanities, clean water, collective bargaining, Colonization of Mars, Credit Default Swap, crowdsourcing, cryptocurrency, Dava Sobel, demographic dividend, Deng Xiaoping, Doha Development Round, double helix, Edward Snowden, Elon Musk, en.wikipedia.org, epigenetics, experimental economics, failed state, Fall of the Berlin Wall, financial innovation, full employment, Galaxy Zoo, global supply chain, Hyperloop, immigration reform, income inequality, indoor plumbing, industrial robot, information retrieval, intermodal, Internet of things, invention of the printing press, Isaac Newton, Islamic Golden Age, Khan Academy, Kickstarter, labour market flexibility, low cost carrier, low skilled workers, Lyft, Malacca Straits, megacity, Mikhail Gorbachev, moral hazard, Network effects, New Urbanism, non-tariff barriers, Occupy movement, On the Revolutions of the Heavenly Spheres, open economy, Panamax, personalized medicine, Peter Thiel, post-Panamax, profit motive, rent-seeking, reshoring, Robert Gordon, Search for Extraterrestrial Intelligence, Second Machine Age, self-driving car, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart grid, Snapchat, special economic zone, spice trade, statistical model, Stephen Hawking, Steve Jobs, Stuxnet, TaskRabbit, too big to fail, trade liberalization, trade route, transaction costs, transatlantic slave trade, uranium enrichment, We are the 99%, We wanted flying cars, instead we got 140 characters, working poor, working-age population, zero day
The same connective and developmental forces that boost health, wealth and populations are multiplying the demands upon lagging and aging infrastructure. Public belt-tightening in the wake of the financial crisis only exacerbates this strain, which is most acute in those areas most crucial to sustaining contemporary life: energy, water and food. The World Economic Forum puts overall infrastructure investment needs at $100 trillion globally over the next 20 years.58 It’s a rich-world problem. The American Society of Civil Engineers gives current US infrastructure an overall grade of D+. The country’s rail and bridges are “mediocre”; roads, drinking water and waste management systems are “poor”; levees and waterways score somewhere between “below standard” and “unfit for purpose.” Just to put American infrastructure “in good repair” would take $3.6 trillion of public money through to 2020. Current spending levels ($2 trillion to 2020) will slow US urban decline, but won’t help her cities seize new opportunities to flourish.59 It’s also (and more urgently so) a poor-world problem.
“Rethinking the Financial Network.” Speech given to the Financial Student Association, Amsterdam. Retrieved from www.bankofengland.co.uk/archive/Documents/historicpubs/speeches/2009/speech386.pdf. 58. Green Growth Action Alliance (2013). “Required Infrastructure Needs.” The Green Investment Report. Geneva: World Economic Forum. 59. American Society of Civil Engineers (2013). “Grade Sheet: America’s Infrastructure Investment Needs.” Reston, VA: ASCE. Retrieved from www.infrastructurereportcard.org. 60. Bhattacharya, Amar, Mattia Romani, et al. (2012). “Infrastructure for Development: Meeting the Challenge.” Policy brief. Seoul: Global Green Growth Institute. Retrieved from www.gggi.org. 61. Bolt, J. and J.L. van Zanden (2014). “The Maddison Project: Collaborative Research on Historical National Accounts.”
Google now gives away, to each of its nearly 1 billion cloud users, online storage worth about $15,000 per person at 1995 prices. In other words, what would have cost a combined $15 trillion just 20 years ago is now free.24 Not only a large share of all public knowledge, but also our private libraries—of letters, photos, music and corporate databases—are available to us anywhere, anytime. “Cloud” is a catchy, but misleading, metaphor; it’s more like a skin—always at our fingertips, inseparable from our identity. Books, and the ideas they contained, were carried along every land and sea route Europe’s new maps revealed; so it is today with digital data. The selfie taken by Ellen DeGeneres with seven other celebrities at the 2014 Oscars generated two terabytes of traffic in just 12 hours, as it was downloaded to 26 million devices worldwide. In 2013, global data traffic broke the one exabyte-per-day barrier—more per day than total annual traffic in 2003.
The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies by Erik Brynjolfsson, Andrew McAfee
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, access to a mobile phone, additive manufacturing, Airbnb, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, American Society of Civil Engineers: Report Card, Any sufficiently advanced technology is indistinguishable from magic, autonomous vehicles, barriers to entry, Baxter: Rethink Robotics, British Empire, business intelligence, business process, call centre, clean water, combinatorial explosion, computer age, computer vision, congestion charging, corporate governance, crowdsourcing, David Ricardo: comparative advantage, employer provided health coverage, en.wikipedia.org, Erik Brynjolfsson, factory automation, falling living standards, Filter Bubble, first square of the chessboard / second half of the chessboard, Frank Levy and Richard Murnane: The New Division of Labor, Freestyle chess, full employment, game design, global village, happiness index / gross national happiness, illegal immigration, immigration reform, income inequality, income per capita, indoor plumbing, industrial robot, informal economy, inventory management, James Watt: steam engine, Jeff Bezos, jimmy wales, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kevin Kelly, Khan Academy, knowledge worker, Kodak vs Instagram, law of one price, low skilled workers, Lyft, Mahatma Gandhi, manufacturing employment, Mark Zuckerberg, Mars Rover, means of production, Narrative Science, Nate Silver, natural language processing, Network effects, new economy, New Urbanism, Nicholas Carr, Occupy movement, oil shale / tar sands, oil shock, pattern recognition, payday loans, price stability, Productivity paradox, profit maximization, Ralph Nader, Ray Kurzweil, recommendation engine, Report Card for America’s Infrastructure, Robert Gordon, Rodney Brooks, Ronald Reagan, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Simon Kuznets, six sigma, Skype, software patent, sovereign wealth fund, speech recognition, statistical model, Steve Jobs, Steven Pinker, Stuxnet, supply-chain management, TaskRabbit, technological singularity, telepresence, The Bell Curve by Richard Herrnstein and Charles Murray, The Signal and the Noise by Nate Silver, The Wealth of Nations by Adam Smith, total factor productivity, transaction costs, Tyler Cowen: Great Stagnation, Vernor Vinge, Watson beat the top human players on Jeopardy!, winner-take-all economy, Y2K
There remains great scope for increasing the volume and variety of innovation competitions. 5. Upgrade Infrastructure It’s almost universally agreed among economists that the government should be involved in building and maintaining infrastructure—streets and highways, bridges, ports, dams, airports and air traffic control systems, and so on. This is because, like education and research, infrastructure is subject to positive externalities. Excellent infrastructure makes a country a more pleasant place to live, and also a more productive place in which to do business. Ours, however, is not in good shape. The American Society of Civil Engineers (ASCE) gave the United States an overall infrastructure grade of D+ in 2013, and estimated that the country has a backlog of over $3.6 trillion in infrastructure investment.23 However, only a bit more than $2 trillion has been budgeted to be spent by 2020, leaving a large gap.
id=USARGDPH INDEX Academically Adrift: Limited Learning on College Campuses (Arum and Roksa) Acemoglu, Daron Affinnova Aftercollege.com Agarwal, Anant Age of Spiritual Machines, The: When Computers Exceed Human Intelligence (Kurzweil) Agrarian Justice (Paine) agriculture: development of inelastic demand in Ahn, Luis von Aiden, Erez Lieberman Airbnb.com Alaska, income guarantee plan in algorithms Allegretto, Sylvia Allstate Amazon Amazon Web Services American Society of Civil Engineers (ASCE) Android animals, domestication of Apple Arthur, Brian artificial intelligence (AI) future of SLAM problem in uses of see also robots Arum, Richard ASCI Red ASIMO Asimov, Isaac Asur, Sitaram Athens, ancient ATMs Audi Australia, immigrant entrepreneurship in Autodesk automation: future of labor market effects of in manufacturing Autor, David Baker, Stephen Barnes & Noble Bartlett, Albert A.
Office of Science and Technology Policy, March 2012, available at http://www.whitehouse.gov/sites/default/files/microsites/ostp/competes_report_on_prizes_final.pdf (accessed September 18, 2013). 22. For a detailed list, see the appendix of McKinsey and Company, “And the Winner Is . . . ” Research Report, 2009, http://mckinseyonsociety.com/downloads/reports/Social-Innovation/And_the_winner_is.pdf (accessed September 18, 2013). 23. “2013 Report Card for America’s Infrastructure,” ASCE, 2013, http://www.infrastructurereportcard.org/a/#p/home (accessed August 12, 2013). 24. See Matthew Yglesias, “The Collapse of Public Investment,” Moneybox blog, Slate, May 7, 2013, http://www.slate.com/blogs/moneybox/2013/05/07/public_sector_investment_collapse.html (accessed August 12, 2013); and the underlying data at “Real State & Local Consumption Expenditures & Gross Investment, 3 Decimal,” Economic Research—Federal Reserve Bank of St.
Connectography: Mapping the Future of Global Civilization by Parag Khanna
1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, complexity theory, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, labour market flexibility, labour mobility, LNG terminal, low cost carrier, manufacturing employment, mass affluent, megacity, Mercator projection, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Peace of Westphalia, peak oil, Peter Thiel, Plutocrats, plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day
Since the financial crisis, dozens of prominent economists including Yale’s Robert Shiller have advocated infrastructure-led investment as a way to create jobs and boost economic confidence. The American Society of Civil Engineers has called for $1.6 trillion in spending for an overhaul of America’s transportation system. Only now—and just before it is too late—is such a national overhaul near the top of America’s agenda with proposals for the creation of a national infrastructure bank. The same is true across the world: The gap between the supply and the demand for infrastructure has never been greater. As the world population climbs toward eight billion people, it has been living off the infrastructure stock meant for a world of three billion.*3 But only infrastructure and all the industries that benefit from it can collectively create the estimated 300 million jobs needed in the coming two decades as populations grow and urbanize.
CITY BUILDING AS STATE BUILDING There is no worse corruption than the oppressive inefficiency of societies where basic mobility is hampered by nonexistent infrastructure. It’s like life without the wheel. Yet three-quarters of the world population—whether urban or rural—lacks basic infrastructure and utilities. In 2013, a rupture along a 250-kilometer water pipeline supplying half of Dakar’s water forced many of its three million people to spend their days lining up at wells and water trucks. More than half of all Africans lack electricity, and 60 percent of South Asians lack sanitation. One-third of the global population still lives in deep poverty—including half the world’s children—with the next two billion people coming from developing countries with inadequate health and education services. McKinsey estimates an $11 trillion shortfall in investments in basic housing. So desperate is their lack of physical and institutional foundations that we should seriously consider whether the biggest problem with state building is the state itself.5 It is not foreordained that all states eventually achieve territorial sovereignty and political stability.
One estimate suggests $2 trillion in emerging market pension assets allocated to other emerging markets by 2020. See Jay Pelosky, “Emerging Market Portfolio Globalization: The Next Big Thing” (New America Foundation, World Economic Roundtable policy paper, July 17, 2014). 10. Martin Neil Baily and Douglas J. Elliott, “The Role of Finance in the Economy: Implications for Structural Reform of the Financial Sector” (Brookings Institution, July 11, 2013). CHAPTER 14: CYBER CIVILIZATION AND ITS DISCONTENTS 1. Julio Bezerra et al., The Mobile Revolution: How Mobile Technologies Drive a Trillion-Dollar Impact (Boston Consulting Group, Jan. 2015). 2. Neal Stephenson, “Mother Earth, Mother Board,” Wired, Apr. 2012. 3. Mark P. Mills, “The Cloud Begins with Coal: Big Data, Big Networks, Big Infrastructure, and Big Power” (Digital Power Group, 2013). 4.
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, Airbnb, American Society of Civil Engineers: Report Card, asset-backed security, Bakken shale, banking crisis, BRICs, British Empire, business process, business process outsourcing, call centre, Carmen Reinhart, clean water, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency manipulation / currency intervention, demand response, Donald Trump, Frederick Winslow Taylor, high net worth, housing crisis, hydraulic fracturing, If something cannot go on forever, it will stop, illegal immigration, index fund, intermodal, inventory management, Kenneth Rogoff, labor-force participation, LNG terminal, low skilled workers, Mark Zuckerberg, Martin Wolf, Maui Hawaii, McMansion, mortgage debt, Network effects, new economy, obamacare, oil shale / tar sands, oil shock, peak oil, Plutocrats, plutocrats, price stability, quantitative easing, race to the bottom, reserve currency, reshoring, Richard Florida, rising living standards, risk tolerance, risk/return, Silicon Valley, Silicon Valley startup, six sigma, Skype, sovereign wealth fund, Steve Jobs, superstar cities, the High Line, transit-oriented development, Wall-E, Yogi Berra, Zipcar
That means U.S. ports will have to be upgraded. If the volume of trade continues to rise, if exports are to double, then rail, trucking, intermodal, and shipping infrastructure will have to expand as well. To attract and handle more tourists, American airports need a facelift and major internal surgery; they have to become as efficient as their counterparts overseas. These are signs that the United States is falling behind, especially when countries such as China are making splashy, highly visible infrastructure investment. In its 2009 Infrastructure Report Card, the American Society of Civil Engineers (ASCE) estimated that the United States needed to invest $2.2 trillion in infrastructure over five years, and that only $903 billion of that total had been budgeted. And Larry Summers said, “Compare Kennedy Airport with the airport where you land, and you ask yourself which is the airport of the greatest country, richest, most powerful country in the world?”
Data on Amazon.com’s revenues can be seen at http://money.usnews.com/money/blogs/flowchart/2011/06/30/why-us-companies-arent-so-american-anymore; information on LivingSocial and HomeAway’s expansion can be found at the companies’ websites; Lynn Cowan, “HomeAway IPO Opens at 34% after Pricing Well,” Wall Street Journal, June 29, 2011, http://www.marketwatch.com/story/homeaway-ipo-opens-up-34-after-pricing-well-2011-06-29. 3. Larry Summers’s remarks can be seen at http://tech.fortune.cnn.com/2011/07/19/brainstorm-tech-video-larry-summers-transcript/. 4. The American Society of Civil Engineers “Infrastructure Report Card” can be seen at http://www.infrastructurereportcard.org/. 5. Raul Katz, “Estimating the Economic Impact of the Broadband Stimulus Plan,” http://www.gcbpp.org/files/BBSTIM/KatzBBStimulusPaper.pdf; the ITU’s broadband rankings can be seen at http://www.websiteoptimization.com/bw/1109/; Pando Networks’ download speed rankings can be seen at http://dl.dropbox.com/u/33013/pandoglobalstudy.pdf. 6.
Index Abdullah, King of Saudi Arabia, 125 advertising, 7, 50, 136, 143, 201, 202 exports and, 129–30 Aegis Communications, 172 agriculture, 20, 99–101, 206, 227 exports and, 100–101, 104, 122, 154, 160 in North Dakota, 149, 153–58, 162 AIA, 35 AIG, 32–33, 35–36, 133 Airbnb, 194–95 Ally Financial, 40, 42 Altman, Daniel, 141 Amazon.com, 22, 203 American Association of Publishers, 193 American Bankers Association, 12–13 American Petroleum Institute, 104 American Recovery and Reinvestment Act, 30 American Society of Civil Engineers (ASCE), 208 Anheuser-Busch, 95, 158 AOL, 183–84, 195 A123 Systems, 211 Apple, 140–41, 143, 195, 198–201 Areddy, James T., 101 Argentina, 85, 176, 203 arms, exports of, 108–9 Armstrong, Tim, 183 Arvizu, Dan, 210 Asia, 13, 35, 87, 144, 203, 226, 228 employment and, 164, 168 exports and, 103, 105, 120, 123 inports and, 131, 138, 140, 146 North Dakota and, 155, 161 and reshoring and insourcing, 169–70, 173, 176–78 Associated Press, 174, 190, 206 Association of International Educators (NAFSA), 119–20 athletes, 126–27 ATM machines, 124, 174–76 Auletta, Ken, 183 Australia, 14, 48, 74, 103, 203 exports and, 98, 106, 122 autos, automakers, 2, 7, 14–15, 21, 34, 104, 186 bailout of, 33, 40–43, 46, 133, 136 efficiency economy and, 60–61, 69, 75, 77–79, 102, 173, 222–24, 227 efficient consumers and, 182, 190–93, 195–96 electric, 41, 79, 97, 210–11, 222 FDI and, 82, 87, 97 hybrid, 78–80, 211 inports and, 133–37, 227 Japan and, 14, 26, 41, 79, 87, 134–35, 173 and reshoring and insourcing, 167–68, 173–74 restructuring and, 46, 51–52, 78, 136, 173–74 supersizing and, 210–11 Bach Composite, 86 bailouts, 6, 20, 23, 46, 51–52, 133, 136–37 of Fannie Mae and Freddie Mac, 32, 35, 42–43 TARP and, 36–38, 40–42 timely policy decisions and, 28, 31–43 Bailyn, Bernard, 18 Bain Capital, 50–51 Baker, Akbar Al, 108 Bakken Shale, 151 Banco do Brasil, 95 Bank of America, 37–38, 48 Bank of East Asia, 92 Bank of Hawaii, 124 bankruptcies, 1, 82, 111, 166, 218 of CIT Group, 47–48 efficiency economy and, 78, 80 restructuring and, 44–48, 51, 53, 55, 58, 78, 136 timely policy decisions and, 40–41 banks, bankers, banking, 1–4, 16, 21, 25–26, 65, 81, 208, 217, 219 bailouts and, 6, 20, 32–34, 38–40, 42–43 of China, 20, 82, 92–94 economic decline and, 12, 17 efficient consumers and, 184, 190 exports and, 112, 124, 129 failure of, 1, 39–40, 46, 92 FDI and, 83, 85, 92–95 in history, 13–14, 36 of Japan, 29–30, 37, 47 North Dakota and, 156–58 regulation of, 19, 25 restructuring and, 45–47, 51, 53–55, 58 strengthening recovery and, 216, 220 TARP and, 36–38 timely policy decisions and, 32–34, 36–40, 43 Barboza, David, 141 Batali, Mario, 123 Bear Stearns, 32–33, 53 Beck, Jill, 155–56, 162 beer, beer business, 144, 194, 206 FDI and, 95–96 North Dakota and, 158–59 and reshoring and insourcing, 177–78 Bennett, Jeff, 87 Berger, John, 153 Bernanke, Ben, 32–33 Bernstein, Peter, 206 Berry Petroleum, 80 Better Place, A, 211 BigBelly Solar, 75, 107, 195, 204 efficiency economy and, 64–68, 72 Big Roads, The (Swift), 207 Bison Gear & Engineering, 67 Blinder, Alan, 31, 164 Blonder Home Accents, 111 Bloomberg, 33, 109 BMW, 79, 87, 97 Boehner, John, 5, 222 Boeing, 51, 108, 227 Book of Masters, 137 Bopp, Aric, 88–89 Boskin, Michael, 5 Boston, Mass., 72, 144, 192, 212, 224 BigBelly Solar and, 66–67 restructuring and, 49–51 Boston Community Capital, 225 Boston Consulting Group (BCG), 117, 166–68, 179 Boston Properties, 51 bottled water, 184–85 Bowen, Wally, 209–10 Bowles-Simpson Commission, 221–22 BP Amoco, 153 brands, 46, 159, 183, 206, 215 exports and, 111, 117, 119 FDI and, 87, 93, 96 inports and, 132, 135, 138–41, 143–44, 227 supersizing and, 199, 202 Braskem, 95 Brattle Group, 210 Brazil, 19, 100–101, 175 exports and, 101, 103–4, 109, 122 FDI and, 82, 85, 94–95 inports and, 131, 144–46 BRIC nations, 19–20, 23, 151 Broadway Partners, 49–50 Buffalo Commons theory, 150 Buicks, Buick, 78, 134–36, 227 Bull, 171 Bureau of Labor Statistics, 166, 187, 191 Burger King, 95 Burr, Aaron, 218 Bush, George W., 5, 16, 26, 30, 33, 222 business cycles, 17–18, 82, 231 Business Roundtable, 146–47 Cai Yong, 134 California, 79–80, 149, 161, 211–12 FDI and, 84, 92, 96–97 tourism in, 122–23 Campagna, Michael A., 178 Canada, 4, 48, 74, 202 exports and, 100, 122 FDI and, 92, 95 capitalism, 3, 14, 25, 45 Capital One, 58 Capital Purchase Program (CPP), 36–38 carbon, 170, 186 efficiency economy and, 61, 65, 75 taxes on, 61, 75, 103–4, 217 Card Hub, 55, 58 Cargill Malt, 158–59 Caro, Robert, 206 casinos, 85, 152 Cavendish Farms, 159–60 Census Bureau, 53 Center for Budget and Policy Priorities, 222 Center Rock Inc., 108 Central Park, 85, 94, 212 Chandan, Sam, 94 Chandler, Alfred, 206 Chegg.com, 193, 195, 204 Cheniere Energy Partners, 106 Chesapeake Bay Candle, 177 Chevrolets, Chevrolet, 41, 77, 135–36, 199 Chicago, Ill., 8, 67, 90, 193, 212 China, 6–9, 14, 18–21, 25–26, 82, 164–78, 187, 217 comparisons between U.S. and, 7–8, 25, 166–67, 202, 208 economy of, 2, 7–8, 18–20, 25, 141, 148, 165, 178, 222 efficiency economy and, 62, 67–69, 71, 227 employment and, 164–68, 170 FDI and, 85–87, 92–94, 97, 164 incomes in, 20, 164–67 inports and, 134–36, 138–44, 146, 164, 227 and reshoring and insourcing, 169–78, 222 trade and, 94, 98, 100–104, 106–9, 112–14, 116, 118–20, 122–28, 164 China Eastern, 124 China UnionPay, 124 Christie, Chris, 211 Chrysler: bailout of, 40–42 bankruptcy of, 40–41, 46, 51, 136 Fiat’s acquisition of, 40, 78, 87 and reshoring and insourcing, 173–74 Chung, Winston, 97 CIT Group, 47–49 Citi, Citibank, Citigroup, 37, 53, 84–85, 172 Citic Press, 128 Civilian Conservation Corps (CCC), 206–7 Civil War, 18, 82 Civil Works Administration, 206 Cleveland Clinic, 126, 145 Clinton, Bill, 26, 31, 70, 217–18, 228 Clooney, George, 129, 227 CNBC, 4, 108 CNG Now, 105 CNOOC, 86 coal, 102–5, 162, 165, 202 Coca-Cola, 83–84, 143, 202, 227 inports and, 133, 137–38, 146 coffee, 139–40, 181 Coleman, 171 collateralized debt obligations, 36 Collinses, 111–14, 116 Colombia, 26, 131, 148 FDI and, 85, 88–91 Commerce Department, U.S., 1, 54, 99–100, 104, 120, 122, 125, 219 Commercial Paper Funding Facility, 34 Committee on Foreign Investment in the United States, 96 competition, 3, 19, 21, 23, 80, 83, 106–7, 167, 194, 204, 228 efficiency economy and, 62, 68, 77 efficient consumers and, 193, 196 inports and, 131–32, 137, 141 North Dakota and, 148, 161 and reshoring and insourcing, 169, 179 Congress, U.S., 14, 19, 23–24, 125, 146 deficits and, 221–22 economic decline and, 3, 10 health care reform and, 5–6 U.S. credit rating and, 1–2 Congressional Budget Office, 31 Connecticut, 50, 86, 105, 140, 146, 151, 161–62, 212 efficient consumers and, 187–88 Conservation and Recreation Department, Mass., 66 construction, 174 efficient consumers and, 190–91 housing crisis and, 219–20 infrastructure and, 205–6, 209, 211, 213 North Dakota and, 152–53, 155–56 Consumer Price Index, 187 consumers, consumerism, consumption, 2, 25, 28, 81, 101, 111, 216, 219 coal and, 102–3 economic pessimism and, 22–23 efficiency economy and, 64–65, 68, 73–75, 78, 223–24 exports and, 98–99, 104–5, 107, 110, 119, 128, 130–31, 147, 154, 164 FDI and, 83, 89–90, 92–93 indebtedness and, 9–10, 53–57 inports and, 131–32, 136–37, 141, 143, 147, 227 North Dakota and, 151, 153–54 and reshoring and insourcing, 169, 172, 175, 177 restructuring and, 44–45, 53–59 supersizing and, 202, 204, 209 see also efficient consumers Cooper, Bill, 105 Cooper, Stephen, 44 CoreLogic, 190 corporations, 1, 9–10, 60, 139–43, 163–67, 169–85, 192–206, 225 comparisons between consumers and, 181, 185, 189, 195 and costs of labor, 164–67 economic optimism and, 23–24 economic pessimism and, 22–23 efficiency economy and, 63–68, 71, 75–76, 80–81, 158, 172, 223 efficient consumers and, 181–85, 192–96 exports and, 98, 103, 108–10, 112–14, 116–17, 131, 177 FDI and, 82–96 global, 22, 24, 71, 95 inports and, 132, 135–37, 139–42, 144, 146–47, 202–3, 227 job growth and, 218–19 North Dakota and, 152–53, 155, 157–60 recoveries and, 17–18, 21, 215 and reshoring and insourcing, 167, 169–79 restructuring and, 44–45, 47–49, 52–53, 57–58, 81, 166 supersizing and, 199–206, 209–10 taxes on, 146–47, 163 timely policy decisions and, 28, 30, 34 U.S. economic importance and, 227–28 Costner, Kevin, 129–30 Coty, 71 Coulomb Technologies, 211 Council of Economic Advisers, 31 Cowan, Lynn, 203 Creation Technologies, 67 credit, 32–36, 94, 194 booms in, 21, 29, 56, 62 crisis in, 2, 4, 23, 26, 48, 53 exports and, 112–13 restructuring and, 49, 51, 53–56, 58 timely policy decisions and, 29, 32–33, 35–36, 42–43 credit cards, 34, 183–85 restructuring and, 54–56 credit ratings, 1–2, 11, 52 Credit Suisse, 137, 223 Davis, Fred, 90–91 debt, 1, 19–20, 23–24, 60, 185 CIT Group and, 48–49 consumers and, 9–10, 53–57 crises and, 6, 29, 216 efficiency economy and, 62–63, 72, 78 efficient consumers and, 181, 189, 193, 196 Erie Canal and, 205–6 FDI and, 82, 94 national, 2, 5, 11, 217 North Dakota and, 155–56 restructuring and, 45–59, 78 strengthening recovery and, 215–16 timely policy decisions and, 32–34, 36, 39, 42 see also loans, lending, lenders debt ceiling extensions, 2, 217 Dedrick, Jason, 140 Defense Department, U.S., 109 deficits: budget, 2, 6, 10, 64–65, 217, 221–22 efficiency economy and, 64–65 trade, 102, 107, 168, 221–22 Delphi, 46 demand, 18, 31, 45, 57, 101, 132, 178, 221 efficiency economy and, 60, 62, 72–74, 223 exports and, 99, 104, 107–10, 116, 119 North Dakota and, 153–54, 159 supersizing and, 206, 208 Deming, W.
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, active transport: walking or cycling, American Society of Civil Engineers: Report Card, big-box store, car-free, hydraulic fracturing, if you build it, they will come, Jane Jacobs, job automation, Loma Prieta earthquake, medical residency, oil shale / tar sands, peak oil, Ponzi scheme, ride hailing / ride sharing, science of happiness, the built environment, urban renewal, women in the workforce, working poor, young professional
The freeway cost is the average cost per mile for a four-lane urban freeway without special restrictions, as reported by a Rails to Trails report on nationally collected figures. The real costs may be much higher when taking into account bridges, tunnels, over and underpasses, and various other factors. Politifact Oregon, March 19, 2011 32 Southeastern Wisconsin Regional Planning Commission Planning Report No. 47 A Regional Freeway Reconstruction System Plan For Southeastern Wisconsin 2005 33 American Society of Civil Engineers, Infrastructure Report Card, 2013. 34 “Repair Priorities,” a 2011 report by Smart Growth America and Taxpayers for Common Sense found that between 2004 and 2008, $22 billion dollars, or 57% of state costs were sunk into building new roads—23,300 miles in total. That left less than half the available funding, or a total of $16 billion for repair of the remaining 98.7%, nearly 2 million lane miles, of the nation’s state highways.
Starting about ten years ago, freeways and bridges started to age out en masse; we have a couple of interesting decades to come. Because we are running out of money now—and not just federal money, but local money for local roads. In truth, we never had it. As early as 2000, the amount of spending needed for basic, safe maintenance of our national freeways and bridges was 20 percent higher than the $30 billion that was actually spent that year. More recently, according to the American Society of Civil Engineers, we need to make 3.6 trillion dollars in infrastructure investments by 2020, just to keep up with basic maintenance.33 But filling potholes just isn’t sexy. The great spate of road building set off in the 1950s continues quickly, and new highway projects are still political gold.34 Skill at leveraging federal money for road projects in one’s district are a standard metric of Congressional electability. The short term jobs created by the construction are badly needed (though the arithmetic of jobs created by new road building never includes the jobs displaced to make room for the projects).
Other cities anecdotally do not boast such law-abiding behavior—but that may be a function in many ways of infrastructure. Research in Chicago found that after new bicycle signals were put in on the busy downtown Dearborn Avenue, cyclist compliance at red lights nearly tripled, from 31% to 81%. A host of studies have attempted to determine who is at fault more often in crashes involving a car and a bicycle; they universally have found that in at least half the cases and often closer to 90% the driver is to blame. Maus, J. “94% of Bikes Wait at Red Lights, Study Finds.” June 25, 2013 143 Goldmark, A. “Traffic Fatalities Up in NYC, Speeding Top Culprit, DOT Says” WNYC March 18, 2013 145 In July, 2013, the average gas mileage of new cars on the market is nearly 25 miles per gallon. On average, someone my age drives 15,000 miles in a year.
Rust: The Longest War by Jonathan Waldman
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Anton Chekhov, computer age, David Brooks, Exxon Valdez, Frederick Winslow Taylor, Golden Gate Park, index card, Isaac Newton, Mason jar, pez dispenser, Ralph Nader, RAND corporation, Ronald Reagan, Works Progress Administration, Y2K
“It’s deplorable! . . . We are virtual engineers. We’re out of touch with reality. “My colleagues still teach like it’s the 1950s,” he went on. “Traditional engineering is brute force. Dam that river. Dig that canal. If it doesn’t work, try harder. . . . Civil engineers have to build something big: my tower is bigger than your tower.” Considering the condition of American infrastructure, which earned a D from the American Society of Civil Engineers, he calls this approach a “technical wasteland.” As evidence, Amadei cited recent train travel. He took the Acela on an hour-and-a-half trip, and was an hour and a half late. He wrote a letter to Amtrak and got his money refunded. To get engineering students back in touch with reality and to give them a conscience, Amadei founded Engineers Without Borders. The organization now has twelve thousand members engaged in more than four hundred projects—mostly water or sanitation related—in forty-five countries.
At seventy-four, his knees have given out, but he still likes to get down and pull weeds. He just needs help getting back up. Robert Baboian, the corrosion consultant, has been back to the statue many times to check up on her. He was there in October 1986, when NACE dedicated its National Corrosion Restoration Site plaque, and he was there a year later, only to discover that the plaque was corroding. It was turning green. The American Society for Metals and the American Society of Civil Engineers had installed their own historic landmark plaques in 1986, and they were doing fine. When ASM and ASCE executives heard about NACE’s rusty plaque, they laughed their butts off. Baboian took care of the problem. He had a New York sculpture artist strip off the old interior-grade coating and apply a durable, exterior-grade coating to it. The plaque has survived okay since. It’s not shiny and polished like ASM’s, but a dull, muted brown.
A former rust industry executive said he and his colleagues always felt like the Rodney Dangerfields of the engineering community. Sensing as much, we avoid the word. Residents of Rust, California, changed the town’s name, a century ago, to El Cerrito. Politicians, too, know better than to mention rust. Though a few presidents have mentioned infrastructure and maintenance, none has mentioned corrosion or rust in a State of the Union address. President Obama has, between 2011 and 2013, called America’s infrastructure failing, crumbling, aging, deteriorating, and deficient—but he didn’t call it rusty. That’s as close as a president has come to uttering the word. Like a condition between high cholesterol and hemorrhoids, rust is a nuisance that we’d prefer not to deal with, and certainly not talk about in public. Confidentially, industry representatives inquire with Luz Marina Calle, the director of the Corrosion Technology Laboratory at NASA’s Kennedy Space Center, regarding their rust woes.
The Impulse Society: America in the Age of Instant Gratification by Paul Roberts
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, accounting loophole / creative accounting, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, asset allocation, business process, Cass Sunstein, centre right, choice architecture, collateralized debt obligation, collective bargaining, corporate governance, corporate social responsibility, crony capitalism, David Brooks, delayed gratification, double helix, factory automation, financial deregulation, financial innovation, full employment, game design, greed is good, If something cannot go on forever, it will stop, impulse control, income inequality, inflation targeting, invisible hand, job automation, Joseph Schumpeter, knowledge worker, late fees, Long Term Capital Management, loss aversion, low skilled workers, new economy, Nicholas Carr, obamacare, Occupy movement, oil shale / tar sands, performance metric, postindustrial economy, profit maximization, Report Card for America’s Infrastructure, reshoring, Richard Thaler, rising living standards, Robert Shiller, Robert Shiller, Rodney Brooks, Ronald Reagan, shareholder value, Silicon Valley, speech recognition, Steve Jobs, technoutopianism, the built environment, The Predators' Ball, the scientific method, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, total factor productivity, Tyler Cowen: Great Stagnation, Walter Mischel, winner-take-all economy
Liz Kennedy, “Citizens Actually United: The Bi-Partisan Opposition to Corporate Political Spending and Support for Common Sense Reform,” Demos, Oct. 25, 2012, http://www.demos.org/publication/citizens-actually-united-bi-partisan-opposition-corporate-political-spending-and-support. 23. Chris Myers, “Conservatism and Campaign Finance Reform: The Two Aren’t Mutually Exclusive,” RedState, April 24, 2012, http://www.redstate.com/clmyers/2013/04/24/conservatism-and-campaign-finance-reform/. 24. David Brooks, “The Opportunity Coalition,” The New York Times, Jan 30, 2014. 25. “2013 Report Card for America’s Infrastructure,” American Society of Civil Engineers, http://www.infrastructurereportcard.org/. 26. In Robert Frank, The Darmn Economy: Liberty, Competition, and Common Good. 27. Brooks, “The Opportunity Coalition.” Footnotes Chapter 1 * Traffic fatalities in the 1920s were about seventeen times higher, per mile traveled, than today
John’s College, Santa Fe, NM, Summer 1985. Accessed June 8, 2013. Doi: http://www.brtom.org/sjc/sjc4.html. Noah, Timothy, “The United States of Inequality,” Salon, Sept. 12, 2010. Accessed September 12, 2013. Doi: http://www.slate.com/articles/news_and_politics/the_great_divergence/features/2010/the_united_states_of_inequality/the_great_divergence_and_the_death_of_organized_labor.html. Parker, Kathleen. “A Brave New Centrist World.” Washington Post, Oct. 15, 2013. Accessed November 1, 2013. Doi: http://www.washingtonpost.com/opinions/kathleen-parker-a-brave-new-centrist-world/2013/10/15/ea5f5bc6–35c9–11e3-be86–6aeaa439845b_story.html. Polsky, G., and Lund, A. “Can Executive Compensation Reform Cure Short-Termism?” Issues in Governance Studies 58 (March 2013). Washington, DC: Brookings Institute. Purinton, Edward.
Daniel Martin, Katz “Quantitative Legal Prediction—Or—How I Learned to Stop Worrying and Start Preparing for the Data-Driven Future of the Legal Services Industry,” Emory Law Journal, 62, no. 909 (2013): 938. 7. Gary Burtless, “How Far Are We From Full Employment” Brookings, Aug. 27, 2013. 8. Paul Krugman, “Defining Prosperity Down,” The New York Times, July 7, 2013, http://www.nytimes.com/2013/07/08/opinion/krugman-defining-prosperity-down.htmlsrc=recg; “Median Household Income, by Year,” table, DaveManuel.com, http://www.davemanuel.com/median-household-income.php; Robert Pear, “Median Income Rises, but Is Still 6% below Level at Start of Recession in ’07,” The New York Times, Aug. 21, 2013, http://www.nytimes.com/2013/08/22/us/politics/us-median-income-rises-but-is-still-6-below-its-2007-peak.html; past years’ data was adjusted usingthe CPI Inflation Calculator at the U.S.
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, affirmative action, banking crisis, carried interest, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, desegregation, full employment, Home mortgage interest deduction, job automation, Mahatma Gandhi, minimum wage unemployment, new economy, Occupy movement, offshore financial centre, Plutocrats, plutocrats, Ponzi scheme, race to the bottom, Ronald Reagan, single-payer health, special drawing rights, The Wealth of Nations by Adam Smith, Tim Cook: Apple, too big to fail, trickle-down economics, women in the workforce, working poor
States also need help financing early childhood education so that every preschooler can begin school ready to learn. And the federal government should help restore the nation’s system of public higher education, which has been decimated by state budget cuts. Meanwhile, America’s infrastructure is crumbling. Our roads, bridges, water and sewer systems, subways and other forms of public transit, gas pipelines, ports, airports, and school buildings are all in desperate need of repair. Deferred maintenance is taking a huge toll. The American Society of Civil Engineers has given the nation’s infrastructure an overall grade of D. The percentage of the national economy going to infrastructure continues to drop—from 1 percent in 1960 to barely three-tenths of 1 percent in 2012. It’s time to rebuild America while at the same time expanding high-speed Internet and modernizing the electricity grid.
If they were taxed at that rate now, they’d pay at least $80 billion more annually, which would reduce the budget deficit by about $1 trillion over the next ten years. PUT A 2 PERCENT SURTAX ON THE WEALTH OF THE RICHEST ONE-HALF OF 1 PERCENT The richest one-half of 1 percent of Americans, each with over $7.2 million of assets, own 28 percent of the nation’s total wealth. Given this almost unprecedented concentration, and considering what the nation needs to do to rebuild our schools and infrastructure, as well as tame the budget deficit, a surtax is warranted. It would generate another $70 billion a year, and $750 billion over the decade. PUT A ONE-HALF OF 1 PERCENT TAX ON ALL FINANCIAL TRANSACTIONS This would bring in more than $250 billion over ten years while slowing speculators and reducing the wild gyrations of financial markets. The three changes above would add up to $2 trillion over ten years—a significant slice off the long-term budget deficit.
If the rich don’t pay their fair share of taxes, the rest of us will have to bear more of a burden. That burden will come in the form of either higher taxes on us or less money for the things we depend on—including health care, education, infrastructure, and national defense. CUT THE MILITARY BUDGET MORE THAN SCHEDULED Without a new budget agreement, nearly $500 billion of automatic across-the-board cuts will be made in the defense budget over the next decade. But this isn’t nearly enough. In the next five years, the Pentagon will still spend more than $2.7 trillion, closer to $3 trillion when adjusted for inflation. Hundreds of billions more can be saved without jeopardizing the nation’s security by ending weapons systems designed for an age of conventional warfare. For example, the F-35 fleet of stealth fighters, whose performance has been awful—the costliest Pentagon procurement project in history—should be jettisoned.
The Ripple Effect: The Fate of Fresh Water in the Twenty-First Century by Alex Prud'Homme
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, American Society of Civil Engineers: Report Card, big-box store, bilateral investment treaty, carbon footprint, Chance favours the prepared mind, clean water, Deep Water Horizon, en.wikipedia.org, Exxon Valdez, hydraulic fracturing, invisible hand, John Snow's cholera map, Louis Pasteur, megacity, oil shale / tar sands, peak oil, renewable energy credits, Report Card for America’s Infrastructure, Ronald Reagan, Silicon Valley, The Wealth of Nations by Adam Smith, urban sprawl
CHAPTER 11: WATER SCARCITY 107 Tunnel No. 3: New York City Department of Environmental Protection: http://www.nyc.gov/html/dep/pdf/factsheet.pdf and http://www.nyc.gov/html/dep/html/ dep_projects/cp_city_water_tunnel3.shtml. 107 Ted Dowey: Author’s tour of Tunnel No. 3 with Ted Dowey, March 5, 2007. 119 The American Society of Civil Engineers: “Report Card for America’s Infrastructure,” American Society of Civil Engineers: http://apps.asce.org/reportcard/2009/grades.cfm. 120 In 2007, 159 leaks: Anthony DePalma, “Mysterious Leak Provides Hint of Lost Manhattan,” New York Times, February 5, 2008. 120 The EPA estimates that 1 trillion gallons: US Environmental Protection Agency, Water Sense, “The Facts on Leaks,” http://www.epa.gov/WaterSense/pubs/fixleak.html. 120 the water pressure inside: From David Grann’s indispensable article on Tunnel No. 3, “City of Water,” New Yorker, September 1, 2003. 122 Standard pay is $35 to $38 an hour: Ibid. 122 Hogs have their own language: Ibid., and Dowey interview.
CHAPTER 20: FORENSIC ENGINEERING 215 Federal Emergency Management Agency (FEMA): Mark Schlefstein, “Levee statistics point up their importance to nation’s economy,” New Orleans Times-Picayune, January 2, 2010. 215 85 percent of US levees were privately built: “The Report Card on America’s Infrastructure,” American Society of Civil Engineers, 2010. 215 177 of them—about 9 percent of federally inspected levees: Ibid. 216 the residents of Fernley, Nevada: Steve Friess, “Rush of Water Leaves a Nevada Town in Anguish,” New York Times, January 7, 2008. 216 Report Card on American Infrastructure: American Society of Civil Engineers: http://www.infrastructurereportcard.org/. 216 Congress had committed only $1.13 billion: Ibid. 216 In the 2006 Rapanos case: John M. Broder, “After Lobbying, Wetlands Rules Are Narrowed,” New York Times, July 6, 2007. See also Charles Duhigg and Janet Roberts, “Rulings Restrict Clean Water Act, Foiling E.P.A.,” New York Times, February 28, 2010. 217 The Corps got its start on June 16, 1775: “The US Army Corps of Engineers: A Brief History,” US Army Corps of Engineers: http://www.usace.army.mil/History/Documents/Brief/index.html. 218 The Mississippi has the third-largest drainage basin: “The Mississippi River and Tributaries Project,” US Army Corps of Engineers: http://www.mvn.usace.army.mil/pao/bro/misstrib.htm. 219 the Great Mississippi Flood of 1927: “Fatal Flood,” American Experience, PBS.
The city’s drinking supply has had a higher profile under Mayor Michael Bloomberg, but much of the system suffers from years of underinvestment and deferred maintenance, and the DEP faces a growing list of problems: infirm dams and seeping water tunnels, sewage overflows and industrial water pollution, pressure from development and gas drilling in the watershed, tension between rural communities and the city over control of water, competition with neighboring states for future drinking supplies, and worries about the impact of climate change on water quality and quantity. Aging infrastructure is a growing problem nationwide, but the decline has occurred largely out of sight, both literally and figuratively. The American Society of Civil Engineers (ASCE), the nation’s oldest engineering society, has reported that much of the nation’s hydro-infrastructure is on the verge of failure. In its 2009 Report Card, ASCE gave the nation’s infrastructure a D, or “Poor,” grade, and waterworks earned some of the worst grades of all: the nation’s dams were given a D, while drinking water, wastewater treatment plants, inland waterways, and levees all received grades of D-minus, meaning they are dangerously compromised.
Happy City: Transforming Our Lives Through Urban Design by Charles Montgomery
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, agricultural Revolution, American Society of Civil Engineers: Report Card, Bernie Madoff, British Empire, Buckminster Fuller, car-free, carbon footprint, centre right, City Beautiful movement, clean water, congestion charging, correlation does not imply causation, East Village, edge city, energy security, Enrique Peñalosa, experimental subject, Frank Gehry, Google Earth, happiness index / gross national happiness, Home mortgage interest deduction, housing crisis, income inequality, income per capita, invisible hand, Jane Jacobs, license plate recognition, McMansion, means of production, megacity, Menlo Park, meta analysis, meta-analysis, mortgage tax deduction, New Urbanism, peak oil, Ponzi scheme, rent control, ride hailing / ride sharing, risk tolerance, science of happiness, Seaside, Florida, Silicon Valley, the built environment, The Death and Life of Great American Cities, the High Line, The Spirit Level, The Wealth of Nations by Adam Smith, trade route, transit-oriented development, upwardly mobile, urban planning, urban sprawl, wage slave, white flight, World Values Survey, Zipcar
$18.9 billion: Safe Routes to School National Partnership, “National Statistics on School Transportation,” www.saferoutespartnership.org/sites/default/files/pdf/school_bus_cuts_national_stats_FINAL.pdf (accessed March 3, 2012). broke city governments: Su, Eleanor Yang, “School Bus Service Vanishing Amid Cuts,” California Watch, September 2, 2011, http://californiawatch.org/dailyreport/school-bus-service-vanishing-amid-cuts-12438 (accessed March 3, 2012). $2 trillion: American Society of Civil Engineers, “Failing Infrastructure Cannot Support a Healthy Economy: Civil Engineers’ New Report Card Assesses Condition of Nation’s Infrastructure,” January 28, 2009, https://apps.asce.org/reportcard/2009/RC_2009_noembargo.pdf (accessed March 3, 2012). looked at job density: Minicozzi, Joseph, “The Value of Downtown: A Profitable Investment for the Community,” Public Interest Projects, 2011. Walmart depresses average wages: Dube, Arindrajit, T. William Lester, and Barry Eidlin, “A Downward Push: The Impact of Wal-Mart Stores on Retail Wages and Benefits,” UC Berkeley Labor Center, December 2007, http://laborcenter.berkeley.edu/retail/walmart_downward_push07.pdf (accessed October 18, 2012).
Across the United States, broke city governments have found themselves unable to fund police, fire, and ambulance services, let alone school buses or the maintenance of roads, parks, and community centers. Cities stretched so far, so fast, for so long, at such low densities that the country now faces a massive unfunded liability for infrastructure maintenance. The American Society of Civil Engineers (ASCE) has warned that repairing the country’s major infrastructure will cost more than $2 trillion. Save the Planet and Your Bank Account Residents of denser, more connected neighborhoods in central Atlanta are not only saving money by paying less in combined housing and transportation costs (right). They are also fighting climate change by producing less greenhouse gas emissions (left) than residents in Atlanta’s sprawling suburbs.
Census Bureau, “National Population Projections Released 2008 (Based on Census 2000),” www.census.gov/population/projections/data/national/2008.html (accessed April 29, 2013). right up to 2030: Nelson, Arthur C., Reshaping Metropolitan America: Development Trends and Opportunities (Washington, DC: Island Press, 2013). Lakewood, southwest of Deuver: Dunham-Jones, Ellen, and June Williamson, Retrofitting Suburbia (Hoboken, NJ: John Wiley & Sons, 2011), 154–71. in the real estate market: Leinberger, Christopher, “Walkable Urbanism,” Urban Land, September 1, 2010, http://urbanland.uli.org/articles/2010/septoct/leinberger. eight parking spaces for every car: Chester, Mikhail, Arpad Horvath, and Samer Madanat, “Parking Infrastructure: Energy, Emissions, and Automobile Life-cycle Environmental Accounting,” Environmental Research Letters, 2010. an entirely new code: Duany Plater-Zyberk, “Projects Map, U.S,” www.dpz.com/projects.aspx (accessed January 27, 2011); Seaside, Florida, “History,” www.seasidefl.com/communityHistory.asp (accessed January 27, 2011).
The Weather of the Future by Heidi Cullen
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, air freight, American Society of Civil Engineers: Report Card, availability heuristic, back-to-the-land, bank run, California gold rush, carbon footprint, clean water, colonial rule, energy security, illegal immigration, Isaac Newton, megacity, millennium bug, out of africa, Silicon Valley, smart cities, trade route, urban planning, Y2K
The country built an elaborate network of dikes, man-made islands, and a 1.5-mile stretch of sixty-two gates to control the entry and exit of North Sea waters into and out of the low-lying southwestern provinces. The Delta Plan is one of the largest construction efforts in human history and is considered by the American Society of Civil Engineers (ASCE) as one of the seven wonders of the modern world. New York—like the rest of the United States—doesn’t get nearly that kind of praise from the ASCE. In fact, in its 2009 Infrastructure Report Card, the ASCE gives America’s total infrastructure a D. In New York State, ASCE’s most serious concern is bridges, roads, and mass transit. The engineers found that 46 percent of New York’s major roads are in poor or mediocre condition, 42 percent of New York’s bridges are structurally deficient or functionally obsolete, and 45 percent of New York’s major urban highways are congested.
acid rain, 23–24 adaptation (adaptation strategies), 58, 235–36 Bangladesh, 214–19 Central Valley, 130–35 Great Barrier Reef, 104–10 Inuit Nunaat, 169–72 New York City, 244–48 Sahel region, 74–80 Adrian Gill Medal, 197–98 Africa. See Sahel region, Africa African monsoon, 68–69, 71, 74 Agassiz, Louis, 16–18 Aggarwala, Rit, 246 agriculture Bangladesh, 210 Central Valley, 137–47 Sahel region, 76–77, 80, 81–82 air pollution, 134–35, 142, 246 Akkadian Empire, 261–64 Alcoa, 176–77, 190 Allen, Myles, 269–70 alliaks, 160–61 American Society of Civil Engineers (ASCE), 238–39 Andes Mountains, 159–60 Aqqiaruq, Zacharias, 155 Arctic. See also Greenland; Inuit Nunaat, Canada forty-year forecast, 188–95 Arctic amplification, 166, 167 Arctic Circle, 155–56 Arctic sea ice. See sea ice Arctic shipping routes, 192–93 Army Corps of Engineers, U.S., 4–5, 240, 250–51 Arnatsiaq, N., 156–57, 163 Arrhenius, Svante, 21–23, 25–26, 29, 39, 40, 42 Asian Disaster Preparedness Center (ADPC), 202–3, 222–24 asthma, 134–35 Atlanta, hot days in, 288 Australia.
As part of PlaNYC, the city had converted 15 percent of the yellow taxi fleet to hybrid vehicles; planted 174,189 trees across the five boroughs; acquired 13,500 acres of land to protect the upstate water supply; saved 327 tons of nitrogen oxide (NOx) per year by means of retrofits to the Staten Island ferry fleet; and started twenty storm water retention pilot projects. Maybe Rosenzweig is right to be optimistic. New York, New York: The Forty-Year Forecast—Hurricanes, Infrastructure, and Sea-Level Rise Forecast September 2013 You could say New York deserved a lucky break. It had already been slapped around enough by tropical storms. Back in September 2004, the remnants of Hurricane Frances had flooded its subways and stranded passengers. And in September 1999, Hurricane Floyd, by then weakened to a tropical storm, had dumped more than 10 inches of rain on the city, causing mudslides on the bluffs overlooking the Hudson River near the Tappan Zee Bridge.
The American Way of Poverty: How the Other Half Still Lives by Sasha Abramsky
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, bank run, big-box store, collective bargaining, deindustrialization, Francis Fukuyama: the end of history, full employment, ghettoisation, Gini coefficient, housing crisis, illegal immigration, immigration reform, income inequality, indoor plumbing, job automation, Mark Zuckerberg, Maui Hawaii, microcredit, mortgage debt, mortgage tax deduction, new economy, Occupy movement, offshore financial centre, payday loans, Plutocrats, plutocrats, Ponzi scheme, Potemkin village, profit motive, Ronald Reagan, school vouchers, upwardly mobile, War on Poverty, Washington Consensus, women in the workforce, working poor, working-age population, Works Progress Administration
There’s no rewinding the clock on how the stimulus package was shaped, and no ability to recoup the hundreds of billions of dollars spent so as to respend them more effectively. But that doesn’t mean there isn’t room, still, for a more limited public works program. Thirty billion dollars, said Attwell, could create a million jobs. Those men and women could, he argued, get to work on the $2 trillion of repairs that the American Society of Civil Engineers estimates needs to be carried out to bring the country’s infrastructure up to par. How could such a program be funded? One way, Attwell explained, would be to set up a social insurance system, similar to Social Security, based on a small payroll tax—Attwell calculated that it would need to be in the 1 percent range—that all workers and employers would pay into, which would then be put into a reserve fund, initially seeded by a loan from the Federal Reserve, used only for public works programs during periods of high unemployment.
In 2011, congressional Democrats in the Progressive Caucus, led by a onetime community organizer from Tucson named Raul Grijalva, pushed a federal budget proposal that, had it been enacted, would have gone a long way toward addressing this challenge. They called it a “People’s Budget,” in a nod to the radical social reform legislation of that same name passed by the British Parliament 102 years earlier. This budget built in proposals that over ten years would have massively ramped up, to the tune of $1.7 trillion, the nation’s commitment to investing in job training, public works, national infrastructure projects, and social safety net programs. At the same time, it carefully accounted for the additional expenditures through reductions in military spending, as well as targeted tax increases, including a series of extra income tax bands topping out at 49 percent for the very wealthiest sliver of the population, higher taxes on capital gains, and higher estate taxes on large inheritances.
Nor is my goal to undermine important moral and philosophical notions about the importance of personal responsibility; rather, it is to suggest ways of giving everybody an opportunity to maximize their own potential. Last, my intent is certainly not to propose a set of policies that inexorably increase the national debt; nor is it to suggest that the country’s political leaders somehow spin money out of nothing. The size of America’s economy, as of this writing, is in the region of $16 trillion per year. That’s large, but it’s not limitless. In an era of anxieties about ballooning budget deficits, I want to show how, in redistributing a few hundred billion dollars per year of that $16 trillion economy, through changes to the tax structure and changes in how we prioritize federal and state spending—or, to put it another way, in reprioritizing who receives and who spends about 2 to 3 percent of the vast national pot of wealth that is America, while leaving undisturbed the remaining 97 to 98 percent—we can create a set of vital anti-poverty initiatives that have the potential to dramatically improve the lives of tens of millions of Americans.