Tuesday, February 09, 2010
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Guest Commentary

Montana’s Stimulus Reporting Gets Improved Grade

Michael Noyes, Montana Policy Institute

Montana’s website to report on stimulus spending earns one of the “highest scores” in a study of state sites released last week.

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Rehberg Criticizes Stimulus Report

Montana Policy Institute

President’s Council of Economic Advisers Touts Stimulus 

Congressman Denny Rehberg disputes claims by the president’s Council of Economic Advisers this week that the stimulus package has significantly boosted the economy.

In an interview in his Washington office with the Montana Policy Institute on a recent afternoon, Rehberg (R-Montana) said little stimulus money has gone to projects that will actually stimulate the economy and criticized President Barack Obama’s overall economic policies.

A report released Tuesday by the president’s Council of Economic Advisers says the $787 billion stimulus played a “key role” in turning around the economy  and estimated total employment is 1 ½ to 2 million higher than it would have been without the stimulus.

Rehberg pointed to unemployment rates that have reached 10 percent nationally and criticized how the funds have been spent.

“Within the stimulus package, 88 cents on the dollar went to something other than something that could be even remotely categorized as stimulus,” said Rehberg, citing the Wall Street Journal as his source of information. 

“It’s hard to see how this stimulus package one, has been successful to this point, and two, can succeed, and that’s why they’re already talking about the next stimulus plan,” he said.

Rehberg also drew parallels between President George W. Bush’s first year in office and the first year for President Obama. He said both presidents inherited an economy heading into recession.

Rehberg said Bush used tax cuts to address the economic issues. In contrast, he says, “(Obama) was going to have an opportunity to take one of two different paths...was he going to solve the economic crisis or was he going to use the economic crisis to fundamentally change America from his philosophical perspective? He chose the latter.”

Asked about his legislative priorities for the New Year, Rehberg said he would focus on a number of issues ranging from international to local projects, including immigration and tax policy. He said as the only congressman from Montana he can’t focus on a limited range of issues like a legislator from a state like California, with 53 congressmen, might be able to do.

“I don’t have that luxury,” Rehberg said. “I have to look at all the issues, whether it’s defense, immigration, social services, foreign operations, all that.”

Rehberg declined to say whether he believes health care legislation will pass this year.

 

 

Montana’s Highway System among Most Efficient

Study: Montana’s Highway System among Most Efficient

By Michael Noyes

 A study released recently puts the Montana highway system among the top five in the nation for overall efficiency and cost-effectiveness.

Reason Foundation’s 18th Annual Highway Report ranks each state highway system based on eleven different factors that include congestion, fatalities, and total spending. Montana ranked fifth overall, with North Dakota and New Mexico first and second.

Montana Department of Transportation Director Jim Lynch said it’s difficult to compare states.

“I think it’s commendable for us to be number five, (but) there are 50 different apples out there,” Lynch said. “We’re not all the same.”

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MGN to Board of Environmental Review: Not So Fast

State policymakers’ rush to adopt new pending EPA greenhouse gas regulation premature, misguided

Just before the New Year, the U.S. Environmental Protection Agency filed its intention to regulate global warming emissions in Congress’ stead. Unfortunately, Montana is now the first state in America trying to hastily comply with this yet-to-be-finalized and legally contentious ruling.

In light of this rush by Montana’s environmental bureaucracies to beat this possible EPA regulation of global warming emissions under the Clean Air Act, Montana Growth Network’s Executive Director Jason Priest released the following statement warning that the Board’s recent vote to begin developing the state’s first greenhouse gas rule will not only put the state’s legal and regulatory systems on shaky ground, but also negatively impact many of Montana’s businesses:

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Commentary: Walkable Fantasy

Commentary: Walkable Fantasy

Mobility has value independent of any central planners’ dreams…

Audio Comments by Randal O’Toole, Senior Fellow of the Cato Institute

The Secretary of Transportation, the Secretary of Housing and Urban Development and the Director of Environmental Protection Agency have signed an agreement to require metropolitan areas to limit mobility of the people in those metropolitan areas. They are going to require them to write plans that aim to reduce the amount of driving we do.

What people don’t think about much, because we take it for granted, is that the automobile has provided us with a tremendous amount of personal mobility that we didn’t have before the automobile. A lot of people like to imagine some kind of golden age where we all rode around on trains or bicycles or street cars, but the reality is only the wealthy could do that, and the wealthy didn’t do all that much of it. The average American only traveled, in1900, about 200 miles a year by inter-city train, and another two or three hundred miles by street car. And, today we are traveling 18,000 miles per person per year almost all of it by automobile or airplane.

The idea that we can go back to some kind of age when we can just have inter-city high speed trains or street cars is foolish, it’s not going to work. Mobility has given us a tremendous amount of benefit.

For one thing, it gives employers access to far more workers. If you can draw workers from a thirty-mile radius, instead of a one-mile radius (because you can only get to the ones who can reach you on foot) — because it gives employers access to more workers, workers are more productive and employers can pay workers more. So, mobility has been associated with a seven-fold increase in real, inflation-adjusted incomes, since Henry Ford developed the mass production of the Model T Ford. So, this huge increase in income is largely due to that mobility.

Mobility gives us access to lower-cost consumer goods. It gives access to a wide range of social and recreation opportunities.

So, when the Obama Administration says they want to coerce people out of their cars — when places like the City of Portland adopt plans that aim to reduce per capita driving by two-thirds in the next forty years — we’re talking about, not just reducing peoples mobility, but reducing their incomes, reducing their access to consumer goods, reducing their social and recreation opportunities. These kinds of impacts will fall hardest on low income people because they are going to be the ones that won’t have access to alternatives.

“[The planners] are romanticizing the plan as it worked for the rich. There is a planning advocate named James Howard Kuntsler, who gave a speech a few years ago, in which he said, imagine living in Chicago in 1881 and you could take a train from your downtown office to a wonderful suburban neighborhood. It was a glorious way to live. Yes, it was for the 10 percent who could afford to live that way, or maybe 20 percent, but the vast majority of Americans were confined to travel on foot. They couldn’t afford trains. They couldn’t afford street cars. Even as late as 1910 most travel in America was on foot. So the idea that we can go back to that age and not lose the incomes we have gained  since then — not lose the spread of mobility throughout our population since then — is just a fantasy.

The reality is that we are going to severely cripple the economy. We are going to harm lots and lots of low-income and middle-income people, if we try to implement these plans aimed at reducing people’s mobility.

There is this feeling that we can substitute transit, cycling and walking, for driving, if we can just put everything closer together. If we have grocery stores within 20 minutes of everybody. If we have office parks and restaurants, and so on, located within 20 minutes. But, that is not the way people want to live. They want to have a choice of grocery stores. They want grocery stores to compete for their business, and not be limited to the one that is within walking distance.

They want to be able to live in multi-income households, and not everybody in the household is going to be able to work in the place that is located within 20 minutes of their home.

And, people like to have a house with a yard and if everybody has a house with a yard, we are not going to be able to be compact enough that everyone can be within 20 minutes of work, or 20 minutes of a grocery store. So the idea that we can pack people in and not lose the things we have gained in the last century is simply a fantasy.

Randal  O’Toole is author of Gridlock

 

 

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