Not Everything Is Doom and Gloom, Folks

[thevoiceofreason]

Kudos to wmtriallawyer on dailykos for putting this piece together,

http://www.dailykos.com/storyonly/2009/4/13/719600/-Oh-Noes!-Wingnuts-Aint-Gonna-Like-This...Stimulus-Projects-UNDER-Budget



Little noticed recently was President Obama's comments to the Department of Transportation regarding the progress of the stimulus projects so far. Can you believe they have already approved about 2,000 (!) stimulus projects in just 41 days.

Check out these quotes!!!

"Today, because these projects are getting approved more quickly than we thought, thanks to in large part the outstanding work of the TIGER team and folks here at the Department of Transportation, and because these projects are costing less than we thought, we can utter a sentence rarely heard in recent years: This government effort is coming in ahead of schedule and under budget.

What!!???!!

"And that's why I'm pleased to hear that in state after state across America, competition for these projects is so fierce, and contractors are doing such a good job cutting costs, that projects are consistently coming in under budget. The final bid for one road project in Connecticut was $8.4 million less than the state budgeted for. Another one in Louisiana was $4.7 million less. (Diarist's note: Take THAT, Gov. Jindal!) A project at BWI Airport will be completed for $8 million less than expected. Bids for projects in North Carolina have been 19 percent under budget. Colorado is reporting bids up to 30 percent less than they expected. And the officials in California have seen bids that are close to half as much as they had projected."

I agree with wmtriallawyer's analysis below (ain't we trial lawyers a bunch of stick close to each other-skis!):

"Well, I've got a theory as to why they are under budget, and I can sum it up in one word: transparency. See, bids tend to me more realistic, money tends to be spent more wisely and prudently, and you tend to get more bang for your buck when every state in the union has to tell the American people how the money is going to be spent...on inter-tubes, no less. (UPDATE: And combine that with, as people have rightly pointed out, more bids, less costs, more willingness to get projects to put people to work, while in a down economy...and you have a perfect storm of getting more bang for our stimulus buck.)"

http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-and-Vice-President-at-the-Department-of-Transportation/

I am proud to post a positive piece in the Economy section to raise the ratio to 1.4% positive!

[napoleon_in_rags]

1. That is good news. Does it include public transit too? nt

[thevoiceofreason]

3. My understanding is that these are all projects

But I'll go look now.

[thevoiceofreason]

5. Yes, many of the projects proposed are for public transportation

I am still trying to access the DOT database to see what's been approved.

[napoleon_in_rags]

7. That's what it looks like to me too, but I am harving a hard time with specifics also.

I keep finding publications on state websites, like this one for Georgia.
http://www.dot.ga.gov/informationcenter/gastimulus/pages/default.aspx
Where they break it down for their state in terms of Highway and public transit, but It would be nice to see a national public transit focused site.

[thevoiceofreason]

6. Delete - Dupe

[daleanime]

2. It's a good start...

and I'm glad to see money being added for high-speed rail:woohoo:

[rurallib]

4. So I float by FUX and the crawl says "20% of projects approved in Illinois

Pres. Barack Obama and Trans Sec'y Ray LaHood from Illinois"

What a bunch of assholes.

[madrchsod]

8. old ray is`t one of them good republicans that fux loves

[girl gone mad]

9. They're under budget for the same reason every other transportation project is..

coming in under budget. I seriously doubt transparency has anything to do with it. The construction industry is suffering. Competition for these projects is fierce. Look at this recent article:

http://globaleconomicanalysis.blogspot.com/2009/03/cost-of-transportation-projects.html

California's poor economy has led to surprisingly low bids on transportation projects across the Bay Area and state, as construction companies fight for their business lives to capture whatever work they can. In an industry where unemployment is at 18.5 percent and more than 30,900 jobs were lost last month, according to the Bureau of Labor Statistics, dozens of firms are vying for work that in the past might draw interest from a handful.

From major highway construction to small sidewalk improvements, bids are sometimes close to half as much as public works officials had projected.

When the Santa Clara County Roads & Airports Department recently sought a contractor to do bicycle and pedestrian improvements along three streets, it expected the cost to be about $975,000. The winning offering was just $543,533.

"Twenty bidders, with the low bid 44 percent under," said Dan Collen, a deputy director with the agency. "Six bidders would have been considered a good turnout, but things have moved beyond competitive. They are desperate."

On the carpool lane project on Interstate 680 from Fremont to Milpitas, the three contracts awarded last month totaled about $88 million — compared with the $136 million Caltrans anticipated.

Repairing bridge decks on Highway 237, Highway 84 and El Camino Real will cost $982,000 — $529,000 less than forecast. Repaving four streets in Cupertino will cost $3.6 million, nearly $1 million under what the city figured it would have to pay. And making the northeast corner of the Virginia-Budd street intersection accessible to the disabled will cost $2,090 instead of $3,000.

No one is certain how much agencies across the state are saving. But it could run into hundreds of millions, maybe even into the billions of dollars.

"I've never seen better bidding in my 35 years in transportation," said Dennis Fay, head of the Alameda County Congestion Management Agency.

Yes, deflation does have some positive benefits. Too bad our central bankers don't see it that way and are hell bent on fighting it using every tool in the shed.

[notesdev]

10. It's supply and demand more than deflation

Deflation has yet to really kick in on the ground level, IMHO; its effects are primarily in the credit markets right now. But it's on its way, for sure.

But what I think is the real bottom line in these contracts is that there are so many companies out there that are desperate for any work they can get, that they're bidding lower and lower as the risk of getting no work and going out of business increases. There just isn't much demand in the construction sector and their future isn't looking any better than the present.

[IrateCitizen]

11. Quantitative Easing

Put in a plainer way, the Fed has been firing up its printing press.

That is what is preventing deflation from kicking in. The only problem is that it has the capability of throwing things in a real inflationary direction.

[TheWatcher]

13. Oh don't blow his high, ggm.

He needs SOMETHING to keep his fantasy world alive.

Let him eat his invisible cake.

[TheWatcher]

12. Yes, I am sure you are proud to copy and paste Well Spun Propaganda that makes you feel good.

It's all you really have left isn't it?

I'm sure you were hanging on every word of the well-crafted Propaganda that sparked yet another Fake 3PM "Rally" because the Fed soothed us all again by telling us that there are "signs" that a recovery "may" be on the way.

Pathetic. :eyes:

[Name removed]

14. Deleted sub-thread

Sub-thread removed by moderator. Click here to review the message board rules.

[marketcrazy1]

15. when i read the OP

the first thought I had was deflation, wage and price deflation. CPI was down.... deflation, thats what Bernake has been trying to avoid at all costs..... well guess what............. FAIL!!!!!!!!