Increasing Investment In Infrastructure

It was the large-scale industrialization and urban expansion that changed the United States dramatically during the last quarter of the 19th century. Since then, buildings, highways, water and sewage systems have expanded beyond cities to the rest of the nation. However, the United States’ current infrastructure is aging, insufficient and hazardous. Infrastructure is a vital national asset that promotes economic growth. The decision to invest in U.S. infrastructure has never been more clear, making it all the more important to consider infrastructure’s importance to long-lasting growth its ability to expand economic opportunities. Policymakers need to invest more money in infrastructure development in order to increase economic growth and productivity, …show more content…
Infrastructure projects require large amounts of time and capital. Some projects take years to complete, which can lead to waste and an increase in cost. Currently, the United States’ infrastructure needs over $3.6 trillion in investment by 2020 to make up for the significant backlog of long-term funding projects because of the impact to our national debt (ASCE). However, the increase in investment will cause a rise in output and so people will gain more income, which is then spent, causing a further rise in aggregate demand, resulting in a bigger increase in aggregate demand in the long run. It is true that this effect is not guaranteed immediately, but that is precisely why investment in infrastructure contributes to the long run growth of our economy. Increasing investment spending on infrastructure is no longer an option: it is a necessity and policymakers have recognized that fact. At the beginning of the month, President Obama passed the Federal Highways Act (FAST Act), “which is a new five-year, $305-billion transportation bill that will ensure infrastructure development to busy highways and roads” (Lowry). Not only does this act implement more jobs into our economy, but it also signifies that the government recognizes the necessity to such acts. The FAST Act boosts highway and transit spending; each $1 billion can potentially create about 18,000 jobs, which will also contribute to economic growth in the long run (Embassy). It is at this time that interest rates are as low as possible, so there is no better time to implement new investment acts for infrastructure. The money for investment toward infrastructure is significant; it represents the future of America and the potential for growth and prosperity for all