Skip to content
Search AI Powered

Latest Stories

outbound

are we missing something here?

Instead of encouraging consumers to rush out to Target or Wal-Mart with their tax rebate checks, why not spend the money instead on fixing America's neglected infrastructure?

As this issue goes to press, the folks in Washington are still hoping we can spend our way out of a possible recession. On Feb. 13, President Bush signed into law an economic stimulus package he described as a "booster shot" for the ailing U.S. economy. Within the next two months, the government will begin mailing tax rebate checks to millions of Americans in hopes that they'll take the money and run—preferably to the nearest mall, boutique, or discount store for some intensive "retail therapy." The theory is that consumers will buy, retailers will re-order, and suppliers will crank out more goods, effectively keeping the nation's economic engines stoked.

The government is backing its plan up with cash—about $168 billion over two years, according to the Joint Committee on Taxation. Under the program, individual taxpayers can get up to $600 in rebates; working couples up to $1,200. Those with dependent children stand to receive up to another $300 per kid.


Sounds good so far, and most American taxpayers will no doubt welcome the extra cash. But it also raises some questions about fairness and equity, not to mention concerns about whether the plan will work.

To begin with, the payments are being called rebates. They're not.

A "rebate" is the return of some portion of an amount of money given in payment for something. But not everybody getting a "rebate" paid taxes. In order to get buy-in from the Democratic leadership in Congress, the measure's sponsors had to include provisions for sending cash to about 30 million people who don't pay taxes at all. That's not a rebate; that's a handout, pure and simple.

Aside from the obvious questions about the equity of sending taxpayer money to people who don't pay taxes, the measure raises other red flags. For example, the plan assumes that once they get their checks, Americans will run out and spend the money. But will they? A number of recent surveys indicate that while some recipients will indeed embark on a spending spree, plenty of others will pay off existing debt or put it into savings. It appears that the government is taking a pretty big gamble with that $168 billion.

What everybody seems to have overlooked is that there's a far less risky way to achieve the same result (stimulating the economy) that would have the added advantage of solving another critical problem: the nation's crumbling infrastructure.

As last year's tragic Minneapolis bridge disaster made all too clear, years of neglect are taking their toll on our nation's roads and bridges. And neglect is the only word for it. In the last 15 years, federal funding for highway and bridge construction, in real dollars, has increased exactly zero percent. In the same period, the cost of highway and bridge construction has increased just over 100 percent. It's not hard to figure out that at best, we're devoting half the resources to repairing, maintaining, and expanding our interstate highway system today as we did in 1992. And considering that by 1992 it was already apparent that the infrastructure was in a state of serious disrepair, it's clear that the issue has gone unresolved for far, far too long.

So instead of encouraging consumers to rush out to Target or Wal-Mart, why not spend the money on fixing some roads and bridges? Imagine, if you will, what would happen if the government put $168 billion worth of road and bridge projects out to bid. The winning bidders buy materials, hire engineers and laborers, and thus provide the same infusion of cash into the economy. As a secondary, but just as important benefit, at least some small number of dangerous roads and bridges get fixed.

Are we missing something here?

The Latest

More Stories

Robotic truck unloading, refined

Mujin's truck-unloading solution—TruckBot

Photo courtesy of Mujin

Robotic truck unloading, refined

Makers of robotic truck-unloading solutions are refining their offerings now that the technology is being used in many warehouses—and that means solutions are getting “smarter” and more adept at handling challenges that arise in real time. Increased handling capabilities, better dexterity, and even more autonomy are at the heart of the updates.

“There are certain behaviors you don’t see in the lab but you do see in the real world,” explains Pete Blair, vice president of product and marketing for Cambridge, Massachusetts-based Pickle Robot, which completed its first commercial installation in the summer of 2023 and now has roughly 12 truck-unloading robots up and running around the country. “We’ve been improving the system over that time period. Right now, [we’re] moving forward with the next generation of the robot.”

Keep ReadingShow less

Featured

chart of ransomware paid after cyberattacks

Moody’s: Hackers target bigger game in their hunt for profits

Hackers are beginning to extend their computer attacks to ever-larger organizations in their hunt for greater criminal profits, which could drive an anticipated increase in credit risk and push insurers to charge more for their policies, according to the “2025 Cyber Outlook” from Moody’s Ratings.

In Moody’s forecast, cyber risk will intensify in 2025 as attackers switch tactics in response to better corporate cyber defenses and as advances in artificial intelligence increase the volume and sophistication of their strikes. Meanwhile, the incoming Trump administration will likely scale back cyber defense regulations in the US, while a new UN treaty on cyber crime will strengthen the global fight against this threat, the report said.

Keep ReadingShow less
image of forklift showing data collection

Supply chain managers point to data accuracy gap

Supply chain managers say one of their top headaches heading into 2025 is a data accuracy gap that leaves many struggling to find the level of insights and visibility required to respond quickly to market changes, according to a report from RAIN RFID and Internet of Things provider Impinj.

Even worse, many managers are overconfident in their data. The majority (91%) of supply chain managers believe they are equipped to drive accurate supply chain visibility, but the reality is that only a third (33%) consistently obtain accurate, real-time inventory data.

Keep ReadingShow less
NSU Tubarao sails in the ocean
Photo courtesy of NS United Kaiun Kaisha Ltd.

Cargo ships harness winds of change

As the old adage goes, everything old is new again. For evidence of that, you need look no farther than cargo ships, which are looking to a 5,000-year-old technology as an eco-friendly source of propulsion—the sail.

But today’s sails bear little resemblance to the papyrus or animal-skin sails used in ancient times or the billowing cotton or linen sails of 19th-century clipper ships. These are thoroughly modern, high-tech devices designed to reduce ship operators’ reliance on costly marine fuels and help curb greenhouse gas emissions—and they’re sprouting up on freight vessels around the world.

Keep ReadingShow less
new technologies illustration with lightbulbs

Supply chain startups get creative

When it comes to logistics technology, the pace of innovation has never been faster. In recent years, the market has been inundated by waves of cool new tech tools, all promising to help users enhance their operations and cope with today’s myriad supply chain challenges.

But that ever-expanding array of offerings can make it difficult to separate the wheat from the chaff—technology that’s the real deal versus technology that’s just “vaporware,” meaning products that don’t live up to their hype and may even still be in the conceptual stage.

Keep ReadingShow less