Secretary of State Antony Blinken said Monday that the US must invest more in infrastructure to compete globally with China and other countries as the Senate is gearing up to pass a $1 trillion piece of infrastructure legislation.
During a speech at the University of Maryland, Blinken said investments in public infrastructure in the US have been on the decline while other countries are increasing domestic spending. “For example, China is spending three times as much on infrastructure as we do every year,” he said.
Blinken said that “domestic renewal” is the “most important” thing Washington can do to advance its foreign policy agenda. He portrayed the relationship with both China and Russia as a global competition between democracy and authoritarian governments.
“This is particularly important now, because it’s no secret to any of us that the Chinese and Russian governments, among others, are making the argument in public and in private that the United States is in decline — so it’s better to cast your lot with their authoritarian visions for the world than with our democratic one,” he said. “Nothing would put to rest faster their specious argument about America’s best days being behind us than if the United States made serious investments in our domestic renewal right now.”
The Senate is expected to vote on a $1 trillion infrastructure bill on Tuesday, which includes $550 billion in spending for transportation, utilities, and broadband. The infrastructure bill is expected to pass, and after the vote, Democrats plan to put forward a resolution for a massive $3.5 trillion spending that would invest in domestic programs, such as paid leave, child care, education, health care, and climate policy.
President Biden has been pushing for a massive infrastructure bill since he came into office and has also framed it as vital to compete with China. In his first address to Congress, while pitching an infrastructure plan, Biden said the US was in a competition with China to “win the 21st century.”
Sorry—but the US just spent its wad on the MIC
To keep up with China, America needs to do as China does – put intelligent people in charge of planning – under capitalism, America’s planning is done by some stupid jerk who inherited a lot of money and who couldn’t care less about anyone’s betterment than his own.
Wishful Thinking…!
China earned that money. And our money for infrastructure is being borrowed to be paid up by future generations. Same with the forthcoming domestic spending — an illusion of prosperous country.
What is the logic behind it ? To keep the global image of prosperity and convince others to follow us. What for? Just long enough to strangulate China and Russia — block their trade, prevent others implementing Chinese and Russian inventions, buying their products, blocking their investments.
With hope that when hurt badly enough, China will concede. And we can dictate terms of their existence, and collect their production and inventions.
As for Russia, there is just one simple plan. Destroy it. Too many times it managed to defend itself against odds. British, French and Germans all took their shots, and failed. America failed to finish it off at the end of Cold War. And to keep China working for the West, Russia cannot remain an independent power.
But this show of successful America is also for domestic purposes. If US cannot demonstrate military power to awe the populace, this is the next best thing. Democrats want to stay in power, while mainstream Republicans are their accomplices.
Republicans must first extinguish any unorthodox thought within the party, and are on their way to marginalize and ridicule any and all Trump era conflicts. Trump himself helped them greatly by demonstrating such hubris that the very ideas that propelled him to power became trivialized and obtained gutter quality.
Now, Republicans and Democrats are salvaging what can be salvaged to pacify the unhappiness.
This is a global battle between plutocracies and meritocracies. Our plutocrats are getting impatient. Instead of blaming themselves for capital wasted on financial schemas, they are now shaking up the ranks of employees. Out with careful management, scientists, productive forces.
In with young, brash and vacuous simpletons to shake things up, break things, cut costs, and create chaos — for as long as optics are right. This process of disintegration is evident everywhere — from local politicians to Congress, from public schools and public transportation, to private infrastructure. From finances to industry. From mid-size companies to conglomerates.
In various parts of the world, this descent into haphazard “reforms” based on narrow interests has been met with skepticism. Meritocracy in various forms is a RESPONSE to preserve, protect and advance national interests. Security and economy became priorities.
We perceive it as authoritarian — simply because the political system is not based on the clash of private interests. It is based on the rise of people within the system that are competent in various fields, and the system is the consequence of the need to defend nation economically and financially.
The rise of “autocracies” is not synonymous with the power of one ruler and a narrow cadre of confidants. Just the opposite. With the need to prevent wholesale plunder of their resources, political party mechanisms, even monarchies REDEFINED their mission, and are recruiting accordingly. There are no identical models. Just identical motive.
“China earned that money. And our money for infrastructure is being borrowed to be paid up by future generations. ”
Officially, China’s regime had a national debt of $7 trillion as of 2020. But that didn’t include off-balance-sheet debt — local government borrowing ($5.8 trillion), debt owed by state-owned firms ($11.5 trillion), and state-owned bank debt ($4.5 trillion).
I am aware of that. But when income exceeds borrowing, they are still earning money. There are also peculiarities in their system, particularly local governments, regional authorities, transit and utility authorities. One, there is barely any taxation on any level. To generate income, all of them must earn money. Many get into joint venture with foreign investors. Roads, railroads, ports and airports do not come for free by taxing populace. Business needs dictate growth, and joint ventures pay their share to build and maintain infrastructure. Those authorities borrow money for construction, but they have an income stream to pay debt, and earn over and above debt obligations.
More interesting are local governments. It is a common practice for local governments to invest into an income generating enterprise. Local governments get loans to pay for local expenditures, as well as for a start up to generate income. Most common such businesses involve hothouses for raising vegetables. But there are many much more sophisticated capitalizing on local attractions and tourism. Where payout is more complicated —- whole towns were built in order to relocate millions of people from remote gorges. Generating new economies, new job market, etc. was all based on
credits. Much of it may have to be written off.
Because there is such a vast difference in repaying capacity, just the raw number of debt amount may not tell the story.
I do not have data on the debt burden by individuals. For some reason China would rather give public entities loans and make them earn money to repay — then let them raise taxes.
They may have to rethink. Their safety net is too thin.
“One, there is barely any taxation on any level.”
Well, except for the 25% corporate income tax, the 16% VAT, the progressive income tax (top rate 45%), and numerous other taxes.
But yeah, other than that, barely any taxation in China.
How about an infrastructure bill for Gaza, rather than more billions to the occupier.