Obama Proposes $50 Billion in Infrastructure Spending

Obama Proposes $50 Billion in Infrastructure Spending

President Obama included $50 billion in infrastructure spending in 2013 in a plan offered to Republicans Thursday to avoid the so-called fiscal cliff.

However, that $50 billion may never fill a pothole — the proposal is only part of an initial salvo in the battle over higher tax rates and government spending.

More spending on roads, rails and airports is meant to help lift the struggling economic recovery out of the slump it slid into during 2012.

The U.S. economy grew at a 2.7 percent rate in the third quarter, compared with a 1.3 percent GDP growth rate in the second quarter, the Commerce Department said.

But that increase in GDP came mainly from expanding inventories, the Commerce Department said Thursday, as companies restocked faster than expected.