Author Topic: Too Little Bang for The Bucks  (Read 1209 times)

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Offline bijou

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Too Little Bang for The Bucks
« on: February 02, 2009, 11:33:50 AM »
Quote
By Robert Samuelson

"Now is the time to make the tough choices."

-- Barack Obama, Jan. 26

WASHINGTON -- Among the many claims made for the "economic stimulus" package now before Congress is that it will "jump-start" a "bigger, better, smarter" electric grid, enabling Americans to use energy more efficiently. The package commits $4.5 billion to this, which (says the White House) will help finance 3,000 miles of transmission lines and 40 million "smart meters." Sounds great.

But it may be mostly hype. For starters, the $4.5 billion is a pittance. An industry study in 2004 -- surely outdated -- put the price tag of modernizing the grid at $165 billion. More important, says a report from J.P. Morgan, the "smart grid" isn't mainly a matter of building new transmission lines or installing new meters. It's more "communications and information processing technology" that allows the more efficient transportation and use of power.

 "The smart grid, while a great idea, is basically a software project," says economist Marc Levinson of J.P. Morgan. "The reason utilities aren't pushing it faster is not lack of money or will, but because there are lots of technical issues and also important compatibility problems so that the various companies' grids can communicate freely with one another."

As it turns out, President Obama didn't make the tough choices on the stimulus package. He could have either used the program mainly (a) to bolster the economy or (b) to advance a larger political agenda, from energy efficiency to school renovation.
...  Obama's political strategy fails to address adequately the economy's present needs while also worsening the long-term budget outlook. Some of his "temporary" spending increases in practice will almost certainly become permanent. There were tough choices to be made -- and Obama ducked them all.

Copyright 2009, Washington Post Writers Group

http://www.realclearpolitics.com/articles/2009/02/the_weakened_stimulus.html