New York, Ohio Expand Design Build Authority

The New York State Departments of Transportation, Thruway Authority, Bridge Authority, Environmental Conservation, and Parks and Recreation are now authorized to award projects using design build.  According to this This ENR article, "Richard Thomas, DBIA vice president of advocacy, calls the legislation a major victory as New York currently allows design-build only for dormitory construction and, more recently, for emergency infrastructure repairs after Hurricane Irene. He notes that earlier this year Ohio also expanded its use of design-build for certain transportation sector work."

The state will set aside $700 million in order to accelerate capital projects, and the Port Authority of New York and New Jersey is slated to add another $300 million.  A separate $1 billion dollar public-private infrastructure fund is being established.

This added design build authority will be on a short leash;  the program is slated to expire three years after enactment. 

China's Hard Landing?

In the tussle over the merits of stimulus spending Keynesian economists (like Krugman and DeLong) regularly point to austerity measures in Ireland, Spain, Greece, et al. to say "See what a mess austerity gets us into."  They mean sustanined unemployment and meagre growth.  Now we have the editorial board of the Wall Street Journal pointing to China as if to say "See what a mess stimulus spending gets us into."  They mean inflation and imminent bust. 

Some of the figures they cite are impressive:  15% GDP spent on infrastructure in inland areas.  If true, this would be truley impressive.  At the height of the construction boom in 2006, total construction in the U.S. was about $1.2 trillion, or roughly 9% of GDP. 

No matter what, watching economic developments in China for the next few years promises to be interesting.