Reversing the decline in state investment in transportation, public buildings, water treatment systems, and other forms of vital infrastructure is key to creating good jobs and promoting full economic recovery — and this is an especially good time for states to do it…Commerce requires well-maintained roads, railroads, airports, and ports so that manufacturers can obtain raw materials and parts, and deliver finished products to consumers…Every state needs infrastructure improvements that have potential to pay off economically in private sector investment and job growth.
Elizabeth McNichol, Center on Budget and Policy Priorities
Infrastructure is the foundation of economic growth. The Roman Empire understood this, and presidents Eisenhower, Kennedy, and Johnson understood this. It’s no coincidence that our nation grew and prospered as the Interstate Highway System was built in the 50s and 60s. And it’s no coincidence that New Jersey’s economy struggles as we continue to neglect our roads, bridges, tunnels, and rails. In her analysis of infrastructure spending and it’s effect on the economy, McNichol goes on to write:
These estimates found that in the depths of the Great Recession, a dollar in infrastructure investment would result in $1.50 in GDP growth, according to the Council of Economic Advisers. Similarly, Moody’s, a leading private econometric firm, estimated the effect at $1.60. The Congressional Budget Office found that that the impact ranged from a low estimate of $1.00 to 2.50.
The full report is available here: http://www.cbpp.org/research/state-budget-and-tax/its-time-for-states-to-invest-in-infrastructure