Thursday, December 21, 2023

How Biden Hobbled his own Infrastructure Push

My developer friends tell me its the difference between a developer spending his or her own money and the government spending someone else's money. 

But Eric Boehm of REASON has a more nuanced explanation: "At nearly every turn, the infrastructure package opted for policies that limited supplies, hiked prices, added paperwork, and grew government."
Rules requiring contractors to use American-made stuff in federally funded projects have been on the books for decades. That's one of the reasons why American mass transit projects are much more expensive than similar projects built in other parts of the world. The infrastructure bill doubled down on those problems by expanding those requirements to cover even basic materials like copper wiring, drywall, and lumber. 
"The quick implementation of Buy America requirements for such a broad range of materials will cause delays in project delivery while states, contractors, manufacturers, and suppliers continue working to determine how best to track and verify these materials," Washington state Secretary of Transportation Roger Millar warned federal officials in a letter last year. 
The Buy American rules are only part of the problem, however. Biden's stubborn refusal to lift tariffs imposed by former President Donald Trump means that steel (something you need for a lot of infrastructure projects) prices remain artificially high. 
The infrastructure law also created delays by adding more paperwork and a confusing patchwork of new federal oversight for projects that sought funding. "Ordinarily, Washington lets states decide how best to spend transportation money," The Wall Street Journal reported in November 2021. But the infrastructure bill gives the Biden administration a greater role in deciding which projects to fund. Those additional steps slowed everything down 
Finally, it's worth keeping in mind something the infrastructure package didn't include: permitting reform to streamline environmental reviews that routinely hamstring federal construction projects. 

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