US Treasury Secretary visits UPS Worldport to push jobs bill
US Treasury Secretary Tim Geitner toured the UPS Worldport hub in Louisville, Kentucky, today, to draw attention to President Obama’s latest effort to kick-start the US economy. As he visited the facility, the Treasury Secretary said American businesses need help to create jobs in the form of tax cuts, while investment was needed in American infrastructure in order to cut delays and raise productivity.
The Obama Administration is seeking a $447 billion package of tax cuts and investment projects, including a $140bn injection into housing and transportation projects, but the President faces a tough task getting the proposals through Congress.
UPS was chosen for the visit since it employs 20,000 people in the US, and would be the kind of business to help the US economy if domestic transportation infrastructure is improved.
Secretary Geithner said: “To be as productive and efficient as possible, American businesses need the foundation of a strong, reliable, modern infrastructure – and that means they need government to do its part. Investing in infrastructure creates good, middle-class jobs and helps our economy run at its full potential, which keeps us competitive and helps lower costs for businesses and consumers alike.”
Overall, the Treasury said clogged roads cost the US $80bn each year in lost productivity and wasted fuel. Flight delays cost the country another $33bn in lost productivity.
For UPS a five minute daily delay for every UPS vehicle ended up costing the company $100m a year.
The Treasury also said the 31,000 flights in and out of the Worldport facility highlighted the need for modernising US air traffic control systems.
The Obama Administration’s American Jobs Act seeks to provide tax cuts for businesses and workers, while also pumping money into employment projects. It comes alongside efforts to cut the nation’s huge budget deficit with various spending cuts.
Sharing a stage with Geitner today, UPS Chairman and CEO Scott Davis said improving US infrastructure would help UPS to support a doubling in US exports.
“I am encouraged that both the President and Congressional leaders are working to develop bipartisan solutions to put people back to work, modernize and create an interconnected transportation system of ports, rails, roadways and runways, create jobs by expanding access to overseas markets for businesses large and small and reform America’s tax system so we can get this economy moving again,” said Davis.
