The fundamental challenge in this recession is that the growth that preceded it was a mirage. Bubble era borrowing created a network of financial jobs, real estate jobs and construction jobs that collapsed with the end of the bubble. Many of those jobs will never return.
An extremely high proportion (75%) of job losses in this recession are permanent rather than temporary. States will need to nurture completely new industry sectors and the infrastructure to support those jobs, while the jobless will need retraining in new skills to participate in those sectors.
One of the biggest topics of conversation in Massachusetts these days is the proposed additional 19 cent gas tax which would go toward roads, bridges, regional transit authorities and public transit improvements throughout the state. More than half of state and local bridges of 20 feet or longer are structurally deficient, while 82 percent of the Massachusetts Bay Transit Authority's (MBTA) rapid transit rail cars are in poor or marginal condition, according to a report by TRIP. Furthermore, a 2007 report by the Massachusetts Transportation Finance Commission found that “the condition of our roads, bridges and transit systems are all in broad decline”¦we have no money for transit or highway enhancements or expansions without further sacrificing our existing systems and exacerbating our problems.”