InfrastructureCrumbling infrastructure hobbles U.S. competitiveness
America’s infrastructure has long been denied the investment and attention needed from public and private entities to remain competitive in an ever-growing global economy. U.S. roads, bridges, power plants, airports, utilities, and other critical infrastructure were once the envy of the world. The post-Second World War golden era (that is, golden era as far as investments in infrastructure are concerned) has come to an end, and fewer resources are committed to improving and maintaining the country’s infrastructure.
Years of lowered funding are resulting inhigher repair prive tags // Source: jrgollc.com
America’s infrastructure has long been denied the investment and attention needed from public and private entities to remain competitive in an ever-growing global economy.
U.S. roads, bridges, power plants, airports, utilities, and other critical infrastructure were once the envy of the world. The post-Second World War golden era (that is, golden era as far as investments in infrastructure are concerned) has come to an end, and fewer resources are committed to improving and maintaining the country’s infrastructure.
The American Society of Civil Engineers (ASCE), in its Failure to Act report, estimated that the shortfall in infrastructure investment in the United States will reach $1.1 trillion by 2020, increasing to $4.7 trillion by 2040. The civil engineering group says that if investments in surface transportation are not made, accompanied by broad infrastructure-related policy reforms, Americans will experience a lower standard of living, businesses will become less productive, and the nation will lose its competitiveness in the global economy.
“America’s infrastructure underpins the nation’s economy. It is the thread that knits the nation together. To compete in the global economy, improve our quality of life, and raise our standard of living, we must renew and update America’s aging public infrastructure,” ASCE says.
Slate notes that Failure to invest in infrastructure will result in dramatic deterioration of key functions. This deterioration is not likely to be noticed overnight, but in due time. Weak roads, for example, will increase travel time for households and delivery trucks. This will lead to a lower productivity rate for workers and longer shipping time for businesses to receive goods.
An ASCE study found that of the sectors negatively affected by degrading infrastructure in terms of business sales in the year 2020, three sectors are going to be hit especially hard — retail trade, water and sanitary services, and restaurants and bars. These three sectors will suffer losses of $95 billion, $76 billion, and $55 billion, respectively.
The same report found that by 2040, three sectors — finance and insurance, retail trade, and real estate and royalties — would be the most negatively affected, with losses of $204 billion, $172 billion, and $159 billion, respectively.
Poor and infrequent maintenance of utilities can lead to more electrical outages and water-related problems. The recent collapse of bridges in Minnesota and Washington are examples of deteriorating infrastructure, the ultimate costs of which were the lives of the people they were built to serve.
The American Prosperity Consensus,in partnership with Slate, reports that the U.S. crumbling surface transportation infrastructure will depress the growth of the country’s GDP by billions of dollars. The broader implications for the global economy, in whichthe United States remains a strategic player, could be even more dire.
