Title: Strengthening Connections Between Transportation Investments and Economic Growth
Abstract: As the 112th Congress contends with the need to reauthorize highway legislation, debate about federal transportation policy and transportation spending is likely to reflect two competing priorities—the need for new investment and creation of jobs, and concern for the exploding national debt. America’s transportation facilities are in need of substantial investment and Americans are in need of jobs, but we are increasingly relying on borrowed funds to pay for federal transportation investments. How can we forge a national direction to address critical infrastructure needs while generating real jobs benefits? This is both more challenging and more consequential than at any time within memory. This paper expands upon and amplifies the ongoing policy discussion of relationships between investments in transportation infrastructure and the nation’s short- and long-term economic well-being. Transportation infrastructure investment programs are not all equally effective at creating jobs or economic growth. Poorly targeted transportation dollars represent a wasted opportunity that the country can ill afford given its current fiscal predicament. On the other hand, accelerating the return of robust and sustained economic expansion will be imperative and can be advanced by the sound investment of scarce resources. Different types of expenditures on transportation can have very different long-term economic and short-term jobs impacts. While there is great interest in short-term job creation during a deep recession, it is also important to focus on longer-term impacts. Federal legislation should focus future spending on surface transportation in ways that reach well beyond the immediate creation of construction jobs to capture broad, sustainable economic benefits.
Publication Year: 2011
Publication Date: 2011-01-21
Language: en
Type: article
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Cited By Count: 24
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