Support 100 years of independent journalism.

  1. Business
  2. Economics
31 October 2012

A pretty good argument for at least some deficit-funded infrastructure spending

Seeing Sandy coming.

By Alex Hern

From the 10 September New York Times, Mireya Navarro wrote:

With higher seas, a common storm could prove as damaging as the rare big storm or hurricane is today, scientists say. Were sea levels to rise four feet by the 2080s, for example, 34 percent of the city’s streets could lie in the flood-risk zone, compared with just 11 percent now, a 2011 study commissioned by the state said… 

The city and its partners are incorporating flood-protection measures into projects as they go along.

Consolidated Edison, the utility that supplies electricity to most of the city, estimates that adaptations like installing submersible switches and moving high-voltage transformers above ground level would cost at least $250 million. Lacking the means, it is making gradual adjustments, with about $24 million spent in flood zones since 2007.

On Reuters today, Emily Flitter writes:

Select and enter your email address Quick and essential guide to domestic and global politics from the New Statesman's politics team. A weekly newsletter helping you fit together the pieces of the global economic slowdown. The New Statesman’s global affairs newsletter, every Monday and Friday. The best of the New Statesman, delivered to your inbox every weekday morning. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A newsletter showcasing the finest writing from the ideas section and the NS archive, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy

Almost every street below Times Square in the city’s Midtown district lost power on Monday night after an explosion at a Consolidated Edison (ED.N) power station, and it may not return for up to four days. A number of these areas had already been hit by flood waters.

Regardless of the shape of the bond market; regardless of the expected return on investment; regardless of whether you are a Keynesian or a Monetarist; some infrastructure investment is a really good idea to do sooner rather than later.