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Barack Obama announces $50bn infrastructure plan

President Obama: "We used to have the best infrastructure in the world, and we

can have it again"

President Barack Obama has called for a new comprehensive infrastructure plan

as part of efforts to jump-start the spluttering US economy.

The plan will invest about $50bn ( 32.5bn) in roads, railways and airports as

well as high-speed rail and the creation of an infrastructure bank.

US infrastructure has long been considered underfunded and receives poor grades

from government agencies.

The move comes amid signs that the US economy is faltering.

On Friday, the US Labor Department announced that the US economy had lost a

further 54,000 jobs, while the unemployment rate rose to 9.6%, from 9.5% in

July.

"Over the next six years, we are going to rebuild 150,000 miles of our roads -

enough to circle the world six times," Mr Obama told an event in Milwaukee

marking the Labor Day holiday in the US.

"We're going to lay and maintain 4,000 miles of our railways - enough to

stretch coast-to-coast. We're going to restore 150 miles of runways and advance

a next generation air-traffic control system to reduce travel time and delays

for American travellers - something I think folks across the political spectrum

could agree on."

Continue reading the main story

Analysis

James Reynolds BBC News, Washington

It's the Labor Day holiday in the United States. This traditionally marks the

start of the mid-term election campaign. President Barack Obama is beginning

this campaign by focusing on the single biggest issue for voters.

The president knows that no matter what else he has achieved, his

administration will be judged by its record on the economy. In particular he

will judged by where he stands in relation to one number: 8.5%. This was the

unemployment rate when Mr Obama took office. This number now stands at 9.6%,

making it hard for Mr Obama to argue that he has made people's lives better.

US presidents enjoy quoting their predecessors. Barack Obama likes it so much

that he had the new carpet in the Oval Office inscribed with quotations from

four US presidents. But two famous presidential lines in particular didn't make

it onto the rug. They are lines that won their authors the White House.

These are lines which may stick in the president's mind as the mid-term

election campaign gets going.

"All of this will not only create jobs now, but will make our economy run

better over the long haul," Mr Obama add.

Mr Obama also called for the creation of a permanent infrastructure bank that

would focus on funding national and regional infrastructure projects.

The proposals would require congressional approval, which analysts say, is

uncertain amid concerns about the size of the federal deficit.

Senate Republican Leader Mitch McConnell said the plan "should be met with

justifiable scepticism" because it would raise taxes.

The infrastructure announcement marks the start of a week in which Mr Obama

will focus on the economy, seen as the most important issue for voters in

Novembers congressional elections.

On Wednesday the president travels to Cleveland, Ohio, where he is expected to

unveil new tax proposals. On Friday he will speak in Washington.

BBC North America editor Mark Mardell says Mr Obama's announcements this week

are all about positioning, and appealing to working class men in particular.

His message in the next two months, and more importantly the next two years,

will be "the Republicans robbed us of recovery", our correspondent adds.

US road construction US infrastructure has been roundly criticised

A CNN/Opinion Research Corporation poll of 1,024 US adults released on Monday

suggests 52% of people would vote Republican, against 45% for the Democrats, up

by 4% on last month.

The proposals call for investments over six years, but would be backed by an

initial $50bn.

Reports quoting White House officials suggest the administration would consider

closing tax breaks for oil and gas companies to pay for the plans.

In 2009, a report from the country's top civil engineers found that the state

of America's infrastructure had not improved in the past four years.

The "Report Card" from the American Society of Civil Engineers gave the US a D

grade for its roads, public transport and other basic services, saying an

estimated $2.2tn ( 1.5tn) was needed for repairs.

"In 2009, all signs point to an infrastructure that is poorly maintained,

unable to meet current and future demands, and in some cases, unsafe," the

report said.