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Just as embarrassing was the colossal ineptitude of the big car companies: Ugly, low-quality cars with shameful gas mileage. Layers of redundant management that relied on amateurish financial controls. Insular thinking reinforced by decades of outsize market share. It was as if Detroit had drawn a road map for Toyota and Honda. And the Japanese drove right in, decimating the U.S. companies. In 1979, GM's U.S. employment peaked at 618,365. Today it's at 75,000 and falling fast. GM's U.S. market share, once about 50%, has fallen to about 20%. True, the quality and efficiency of American cars have improved dramatically, but it may be too late.
And what about the Hurricane Katrina debacle? An act of God, right? Not really. When the storm raced toward New Orleans in late August 2005, scientists at the National Oceanic and Atmospheric Administration feared the worst. For years they had been warning the Army Corps of Engineers, which oversaw the city's 350 miles of levees, that its system was inadequate. The scientists wanted the Corps to revise the Standard Project Hurricane, a model that determines how extensive the levees should be. For instance, the Corps did not consider the tendency of soil to sink over time, and it excluded the possibility of a highly powerful storm hitting the city because that was unlikely, which violates sophisticated principles of statistics and just plain common sense. On Nov. 18, a federal judge ruled that the Corps was directly responsible for flooding in St. Bernard Parish and the Lower Ninth Ward. "The Corps' lassitude and failure to fulfill its duties resulted in a catastrophic loss of human life and property in unprecedented proportions," the judge said. The government is expected to appeal.
Besides the Army Corps, mismanagement by the local levee boards contributed to substandard levees. Katrina wasn't even as bad a storm as had been feared, but the levees weren't as good as had been hoped. Some fact-based decision-making could have saved hundreds of lives and billions of dollars. Here, too, years of complacency were the rule, not the exception. The price was paid this decade.
Deteriorating infrastructure extends far beyond the Crescent City. At 6:05 p.m. on Aug. 1, 2007, the Minneapolis I-35W bridge spanning the Mississippi River collapsed, killing 13 and injuring 145. The National Transportation Safety Board later cited a design flaw as the cause, but the bridge had been classified as "structurally deficient" since 1991, according to the U.S. Department of Transportation Highway Accident Report. The bridge, which opened in 1967, was scheduled to be replaced in 2020. How many other bridges, roads and dams are death traps--in--waiting? No one knows, but you can't help wondering if squeezed maintenance budgets are making our country less safe. A 2005 report card on American infrastructure by the American Society of Civil Engineers (which gave mostly C's and D's) estimated that the U.S. needed to spend $1.6 trillion to bring our roads, highways, bridges and dams into good shape. Sure, the engineers are looking for work but know that the U.S. spends only 2.4% of its GDP on infrastructure, as opposed to 5% in Europe and 9% in China. Here again, why should a politician spend money today to fix something that won't collapse until tomorrow? Especially if he or she could get re-elected by cutting taxes instead.