President eyes infrastructure as job engine

President eyes infrastructure as job engine    Spending money to modernize the nation's infrastructure could help pull the U.S. economy out of the doldrums and bring back some of the 8 million jobs lost during the recession, President Obama said Sunday in a taped interview on CBS's 60 Minutes.
   Despite passing a $787 billion stimulus bill last year and cutting short-term interests to almost zero, the government has been unable to get the economy to grow at pre-recession levels and reduce the 9.6 percent unemployment rate.
   Growth has been tepid, and economists worry about deflation and the possibility that it could take at least five years to substantially reduce unemployment.
   U.S. gross domestic product in the third quarter was 2 percent and 1.7 percent in the second quarter, according to the latest Commerce Department figures.
   'We have got a couple trillion dollars of infrastructure improvements that need to be made around the country,' including roads, airports and railroads, Obama said.

Related News •   Obama backs more balanced regulatory climate •   Obama, Clinton promote exports in India, Australia

   The White House recently released a report saying now is an ideal time to invest in infrastructure because interest rates are low and contractors are submitting lower bids to win new work.
   Obama said frontloading investments makes sense when money is cheap and people are desperate for work.
   'One of the interesting things about the Recovery Act was most of the projects came in under budget, faster than expected, because there’s just not a lot of work there.
   'I mean there are construction crews all across the country that are dying for work and companies that are willing to take a very small profit in order to get work done. And so, for us to say now is the time for us to rebuild this country and equip ourselves for the 21st century, that's something that could make a real difference' accelerating growth, the president said.
   The Republican Party, under pressure from the Tea Party movement, has made clear it intends to push for smaller government, cutting back on discretionary spending and that it is not interested in supporting more stimulus programs.
   Rep. John Mica, the presumptive new chairman of the House Transportation and Infrastructure Committee, this fall said it was premature for the administration to propose a $50 billion down payment on a surface transportation bill when 60 percent of the Recovery Act money devoted to infrastructure remains unspent. Democrats disagree with his definition, noting that most of the money has been obligated to states and most of the identified projects have been started.
   'Historically, rebuilding our infrastructure is something that has garnered Democratic and Republican support. I want to have a conversation with them (the Republican leadership) and see if that's still the case,' Obama said. ' Eric Kulisch