A few months back, as the economy was tanking and politicians here and in Washington,D.C. were looking to take action, a great deal of emphasis was placed on government spending for “shovel-ready” projects. Shovel-ready projects are public works projects that have been designed and in some cases put to bid, but have been held up by a lack of funding.
They are attractive to politicians because they provide an opportunity to show government in action. We pass a bill today and we are building a highway ramp tomorrow. That’s service.
Everyone was on board with the idea, but as we look back now, it doesn’t make a lot of sense for the long term. The near collapse of the economy did not begin in the construction industry. It started in the housing market and the financial sector. The people losing jobs as a result of the economic turmoil held white collar positions. If they ever used a shovel it was on the weekends in the garden — probably one of those shiny Smith and Hawken shovels that you wash off after each use.
Yes, it’s true that billions were also pumped into bailout banks and the auto industry. The emphasis on building an economic sector around energy savings is also important, but the 1930s-style public works approach seems outdated.
In almost every town in Connecticut you can find a small stone or concrete bridge stamped with the letters W.P.A. — Works Progress Administration. They are one legacy of the make-work infrastructure program of the Great Depression that helped improve transportation in, what was then, a more rural America. It made sense in terms of where the country needed to go, but in the world economy of today there are no roads. Infrastructure spending is a necessity, but it is not a way out of the ditch.
It seems, as we move forward, there should be more emphasis on “technology-ready” jobs — which means the investment should be in advanced education, system upgrade and research. Technology is the little stone bridge of this century.
Nothing against manual labor or construction, but that work will always be around whenever needed and if we ever become so affluent as a state that no one in Connecticut knows how to use a shovel, we can import workers from places like Rhode Island, or maybe even Montana.
The shovel-ready approach also seems to place too much reliance on the federal government to bail us out and not enough emphasis on making our own way. Federal government’s big stick — when it comes to helping us out of a jam — is the ability to print money. The default response to any economic crisis is: take this money and spend it.
Connecticut can use the current economic downturn to make its own way. Despite the last eight months, we are still positioned, better than most states, to lead in the areas of insurance and financial services. Health care, energy technology and precision manufacturing are also promising industries to nurture.
What can we do to keep the business sectors we have thriving and how can we attract new ones by providing the incentives that make Connecticut the place to be? It’s the two-part question policy makers should be asking now and taking action on as soon as possible. The question has been asked before and the answers are generally known. When times get tough, many in politics seek to punish business by raising taxes, or going after profits. If we are thinking of our own future, we should be rolling out the red carpet.
Dean Pagani is a former gubernatorial advisor. He is vice president of public affairs for Cashman and Katz Integrated Communications in Glastonbury.
