Washington – Ahead of tomorrow’s meeting on infrastructure between President Donald Trump, House Speaker Nancy Pelosi, Senate Democratic Leader Chuck Schumer and other Democratic leaders in Congress, Business Roundtable released the following statement from Mike Burke, Chairman and CEO of AECOM and Chair of the Business Roundtable Infrastructure Committee:
“Business Roundtable is encouraged to see that President Trump, Speaker Pelosi, Leader Schumer and other Congressional Democratic leaders will discuss infrastructure modernization and how best to turn an economic obstacle into an economic advantage. We urge the Administration and Congress to increase their efforts toward legislation that would make a significant and sustained investment in rebuilding our roads, highways, bridges, airports and waterways.
“A recent Business Roundtable study shows such an investment would give the average U.S. household an additional $1,400 in annual disposable income and create 1.1 million new jobs over the next decade. Policymakers should focus on shoring up public trust funds, unlocking and incentivizing private investment, and streamlining permitting processes for infrastructure project approvals. A solution for infrastructure should enhance, not weaken, policies that have contributed to strong, sustained economic growth. Democrats and Republicans should take advantage of this opportunity to deliver for American commuters, workers and families.”
As referenced, Business Roundtable released a study earlier this year analyzing the economic impacts of a scenario where (1) an additional $737 billion investment above baseline is made over 10 years in America’s surface transportation, water and sewer systems, aviation, water resources and water transportation; and (2) thereafter, a new normal for infrastructure spending by holding public capital investment infrastructure steady at a fixed share of GDP, in the range of 1.2 percent.
In addition to significant increases in household disposable income and employment, the study finds:
Every $1 invested in infrastructure drives roughly $3.70 in additional economic growth;
- Average wages would rise by $1.34 per hour after 20 years;
- Average annual labor productivity would be 0.56 percent higher than baseline;
- U.S. businesses would invest an additional $1.9 trillion over 20 years; and
- $5.9 trillion would be added to gross domestic product (GDP) over the same time period.
Click here to read the full report.
Business Roundtable has developed a set of principles to guide policymakers as they encourage the development of 21st century American infrastructure. These include:
- Shoring up public trust funds by increasing public investment;
- Unlocking the full potential of private investment;
- Encouraging increased state and local investment; and
- Streamlining the review and permitting process.
Click here to read our principles.