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lessons from the blackout

Power Failure Highlights Continuing Deterioration of American Infrastructure

NEW YORK—At the time of this writing, the cause of the blackout of Aug. 14 is still the subject of speculation. The blackout itself, however, which affected 50 million people throughout the Northeast, is a graphic illustration of the precarious and worsening state of the entire infrastructure of this country under present-day capitalism. The big problem with infrastructure projects under capitalism is that, generally speaking, they’re not very profitable (if at all). Things like bridges, dams, and roads rarely pay for themselves in bottom-line terms, except for construction companies (often a onetime situation). Even potentially profitable projects like electrical utilities and power plants are highly capital intensive, especially in a situation of ever-increasing demand requiring ever-increasing capacity. Mounting investments in this area, however, can cut into profits. As non-commodities, infrastructure projects don’t have the turnover frequency needed for the high rates of profit that capitalists seek.

As a result, expenditures for actual infrastructure building tend to get pushed onto the shoulders of various levels of government, while capitalist corporations look for ways to reap profits from the finished projects. An prime example of this was Enron, which was an “energy” company which produced no energy and owned no power plants, but “sold” energy back and forth between states, gaining large profits with virtually no overhead. This poses a continuing danger for working people, who need infrastructure as basic objects of use. As government revenues shrink through corporate welfare or get redirected elsewhere (for example, for the war machine), and corporations increasingly seek to invest only to play a parasitic role, needed infrastructure is neglected. That which exists is allowed to decay, while new construction for future (and often present) needs is neglected. The result is a continually deteriorating situation which will lead to tragic consequences.

The 2001 infrastructure report card of the American Society of Civil Engineers included the following findings: One third of major roads in the United States are in poor or mediocre shape; 29 percent of bridges are deficient or functionally obsolete; 75 percent of school buildings are inadequate. There are annual investment shortfalls of $11 billion for drinking water, and $12 billion for wastewater; 2100 dams are unsafe and there is a $38 billion navigable waterway project backlog.

More than 10,000 megawatts of new electric capacity will be needed annually until 2008, compared to 7000 added annually in the 1990s. There will be a total five-year infrastructure investment need of $1.3 trillion (coincidentally, the same amount the rich will get from President Bush through his tax cut).

As can be seen, our country is literally falling apart around us. So, what can be done? Socialists, as part of a program of putting human needs first, advocate the following measures:

1) A massive jobs program to repair old and build new infrastructure. This would also help to end unemployment. The program would be federally funded at prevailing union wages.

2) Develop a national plan to be drawn up to determine new infrastructural needs in order to have new capacity available when it’s needed.

3) Government ownership of utilities, under workers’ control.

4) Invest in alternative, renewable energy sources (which are less vulnerable to failure). Replace the country’s coal-fired and nuclear plants, as well as environmentally destructive hydroelectric dams, with smaller non-polluting facilities that are close to the areas they serve.

5) Repeal the tax give-away to the rich. Reinstitute a sharply progressive income tax, with no taxes to be paid for incomes under $100,000 per year. Reinstate the capital gains tax and an increase in corporate taxes. This would pay for the previous points.

6) End the military war budget. Withdraw all troops from overseas. Use the troops as part of the labor force on the infrastructure repair and construction projects.

7) Curtail suburban sprawl and the despoilation of natural areas and farmland, which adds to infrastructure needs while making repairs more difficult. Focus on rebuilding the inner cities and, when necessary, on building new mini-urban concentrations linked by mass transit—instead of extensive areas requiring more and more roadways.

These actions would be a means to preserve and improve facilities that all working people need, and to avoid future catastrophes that are waiting to happen. This plan should be taken up by unions, community groups, and others as part of the fight for a better life.

The article above was written by Gerry Fiorri

Youth for Socialist Action - fighting for a world worth living in!

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