Robert Puentes writes: When a bridge falls, when a water main fails, or when a train crashes, news crews and commentators report on the sorry state of our nation’s infrastructure. Policymakers on both sides of the aisle say we need to do something to fix our roads and rails, our ports and pipes. This flurry of activity lasts for a few days, but then little to nothing happens.
Why isn’t there more action?
Despite infrastructure’s fundamental role in the health and safety of the American people and the economy, the United States has underinvested for decades. Today, infrastructure spending as a share of gross domestic product is about 2.5 percent, much lower than the 3.9 percent in peer countries such as Canada, Australia, and South Korea. The figure for Europe as a whole is closer to 5 percent and between 9 and 12 percent for China.
Unfortunately, the federal government has not taken the actions required to reinvest in our nation’s infrastructure. For the foreseeable future, federal support for programs such as the Highway Trust Fund and State Revolving Funds for water will likely continue to face cuts and budgetary shortfalls.
Other experiments, such as the National Infrastructure Bank (though noteworthy), seem too complex and politically challenging in the current legislative environment. Furthermore, given the rise in interest payments, increases in entitlement spending, and decline in traditional sources of government revenue such as the gasoline tax, competition for limited resources is fierce.
Cost in Lives