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Obama targets new infrastructure jump start for US economy

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On Monday US President Barack Obama announced a new plan to renew and expand the nation's roads, railways and runways, in a bid to jump start the economy and create jobs.

  
With November 2 elections for control of Congress approaching, he announced a $50bn infrastructure spending program at an event in Milwaukee, Wisconsin, marking the Labor Day holiday.

The proposal calls for investments over six years, including rebuilding and modernising 241,000km of roads, adding 6400km of high speed railway lines and replacing 240km of airport runways.

The White House says the plan could be paid for by cancelling tax breaks for American oil and gas companies, thus avoiding adding to the country's spiralling national deficit. "This is a plan that will be fully paid for and will not add to the deficit over time," said Obama." It sets up an Infrastructure Bank to leverage federal dollars and focus on the smartest investments. All of this will not only create jobs now, but will make our economy run better over the long haul."
 
The proposal is among an array of targeted initiatives, that Obama will outline today Australian time, in an effort to buoy the US economic recovery and long-term growth. The plan builds upon the infrastructure investments that the Obama administration has already made through the Recovery Act.

The US unemployment rate rose to 9.6% in August, reflecting business reluctance to hire amid uncertain economic prospects. Private-sector payroll edged up by 67,000, well below the amount generated in July, the U.S. Labor Department reported on Friday.


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