Treasury Department Release Infrastructure Investment Study
An October 11th report titled, “An Economic Analysis of Infrastructure Investment,” which was prepared by the Department of the Treasury with the Council of Economic Advisers, evaluates the economic impact of the Obama administration’s infrastructure plan. The plan calls for investment of $50 billion in a six-year reauthorization of the surface transportation program, creation of a National Infrastructure Bank to leverage private capital for improvement projects, and rigorous analysis of proposed projects to identify those that yield the greatest returns to society and deliver long-term economic benefits.
The report found these four key reasons for an increased infrastructure investment at the federal level:
- Well-designed infrastructure investments have long-term economic benefits;
- The middle class will benefit disproportionately from such investment;
- High level of underutilized resources that can be used to improve and expand U.S. infrastructure; and
- Strong demand by the public and private businesses for additional transportation infrastructure investments.
Stephen E. Sandherr, the chief executive officer of the Associated General Contractors of America, responded to the release of the report with this statement:
“That is why the Administration’s newfound focus on making significant, long-term investments in rebuilding and expanding transportation infrastructure will provide much-needed help to hard-hit businesses and workers alike. With construction prices down significantly from just a few years ago, now is the right time to make a long-term commitment to the very infrastructure that keeps our businesses competitive, our drivers safe and our communities vibrant.”
It probably should be noted that the political action committee for AGC contributed 77% of its funds this election cycle to Republican candidates. While the individual candidates supported by AGC are selected because they are judged to support AGC’s “values and concerns and will fight our efforts to protect the construction industry,” according to AGC PAC information, it is anticipated by most political commentators that a Republican-led Congress will not continue stimulus spending, address the depletion of the highway trust fund by increasing fuel taxes or creating alternative taxing, or promote long-term infrastructure improvements through research and pilot projects.