Meyersohn, Nathaniel
CNN.com
Posted 3/30/2024
Keywords
infrastructure, fiscal policy, transportation, bridges
Current News Topic
# 9 Fiscal Policy
Article Synopsis
Recent data shows that 46,000 of the 617,000 bridges in the U.S. are in poor condition with 17,000 of those “at risk of collapse from a single hit.” The situation came to the forefront after the Baltimore bridge collapsed in less than one minute after being hit by a 100,000 ton cargo ship on March 29, 2024. However, bridges are also susceptible to damage from hurricanes, earthquakes, and even extreme heat.
One recent study estimated it would take about $125 billion to bring the nation’s bridges up to appropriate safety standards. Part of the money could come from the $1.2 trillion legislation passed in 2021 to pay for major infrastructure projects. Experts believe at least a portion of that money could be directed towards bridge repairs.
The Baltimore bridge collapse is not an isolated event. There have been several global events in 2024 where large container ships hit bridges resulting in collapse or substantial damage and loss of life. Part of the issue stems from the much larger size of today’s shipping vessels relative to 30 years ago. Experts maintain that bridges need to be strengthened and protections put in place to keep these events from happening. A single event can be very disruptive to a local, state, or national economy.
Exercise 1 Questions
1. Fill in the blanks: Fiscal policy actions include changes in _______ and ______ designed to have some influence on the economy.
2. Which of the following is an example of fiscal policy?
a. legislation reducing taxes on business investment
b. the Federal Reserve reducing interest rates
c. legislation that increases funding for Social Security
d. none of these
3. True or false: Increases in infrastructure spending tend to stimulate economic growth.
Exercise 2 Discussion Questions
1. How does infrastructure spending impact the economy?
NOTE TO INSTRUCTOR: Look up the $1.2 trillion spending bill and see if you can find any projects that have been funded from this legislation.
2. Why are the nation’s bridges in such poor condition?
NOTE TO INSTRUCTOR: Debate this issue in class. Should we term limit politicians so they have a longer-term focus?
3. What other fiscal policies have been enacted lately?
NOTE TO INSTRUCTOR: Look up some more recent legislation and also some state-specific fiscal policies and discuss them in class.
Pearson Economic News 