Bond issues and the economy

In Seattle, as in most parts of the country, there are bond issues on Tuesday's ballot. In our case, they are for expanding the regional public transit/light rail system and for refurbishing Pike Place Market.

In other parts of the country, they may be for parks, roads, court houses, firehouses, bus routes, etc.

States and municipalities put these things on the ballot before the recent Wall Street melt down. Now, polls are showing less support among the electorate. There is a sense that with declining tax revenues and a weaker economy, the governments should not spend money on infrastructure. They should conserve funds as much as possible.

Nonsense.

Now is exactly the time cities and states should spend this money. If these projects made sense 6 or 12 months ago, they make even more sense now.

1. In a strong economy, building materials and labor costs go up. Everyone is building and competing for the same resources which drives prices higher. Municipalities that build now will find that costs are lower.
2. In a similar vein, building in a strong economy means that municipalities compete with private industry for limited resources. This drives up costs for both parties. In a really strong economy, that can mean industry can't do some projects because resources are absorbed by the municipalities.
3. Putting people to work in a down economy is a good thing -- especially when they are working on real projects and not just "make work" projects. It blunts the impacts of private industry layoffs.
4. Municipalities normally pay for these projects with long term bonds. In other words, much of the cost for these programs won't hit the citizens in the year they are built, but over the course of several years -- in weak and strong economies.
   
5. Putting off projects until the economy is stronger will make them more expensive. Besides the fact that they will be competing with industry, those costs will also be higher due to regular inflation.

If the projects makes sense in a strong economy, they makes even more sense now. They are cheaper to build in a down economy and have the added benefit of putting people to work. And putting people to work -- real work -- is a key ingredient in bringing an area out of a recession.

As God is my witness, I thought penguins could fly

This just may be the cutest lottery commercial ever. My GF stops and watches it whenever it comes on TV. I may just have to pick up a few more Mega Millions tickets just because of this.

Seattle Trys Infrastructure -- Again

Now that we've been through the political debacles of the third Seatac runway, the monorail, and the viaduct, it's time to dive into the quagmire of the HWY 520 floating bridge.

It has exceeded its expected lifespan and needs to be replaced. It crosses a sensitive environmental area and university on one side, and one of the wealthiest neighborhoods in the state on the other. And it carries huge volume of traffic.

This should go well.

The Washington State Department of Transportation is trying to get out in front of the dispute and remind people that doing nothing (which is all Seattle ever wants to do) is not an option. So they put out two videos projecting the destruction of the bridge.

They're actually pretty cool.

As Long as They Get Rid of that Damn Caterpillar...

State lawmakers aim to cut payday lenders' interest rates
By Elliott Wilson

Seattle Times staff reporter

...
Now a legislative push to slash small-loan interest rates could put the payday lenders in their own financial jam. State House leaders say there's widespread support to crack down on the industry.

Two House bills, one for those in the military and another for everyone, would cap interest rates at 36 percent annually. The lenders currently can charge up to 390 percent annual rates.

"If it does pass, we are done," said Kevin McCarthy, owner of 22 payday lending stores called Check Masters. Lenders say they must charge rates higher than more traditional lenders such as banks because their loans are so small.
...more