A modern infrastructure system is key to unleashing the full productive potential of the U.S. economy. In recent years, however, public-sector investment in infrastructure has not kept pace with the dynamism, innovation and growth elsewhere in the U.S. economy. This study is designed to quantify and make the case for the benefits of taking action to reverse this trend. Using an industry-base macroeconomic model, it estimates the economic impacts of a fiscally responsible investment of $737 billion over 10 years in surface transportation, water and wastewater, aviation, water resources, and water transportation, plus the crucial step of establishing a “new normal” level of public-sector commitment to maintaining American infrastructure. 

Infrastructure investment delivers tangible results for the American family. It adds an average of $1,400 in disposable income for the average U.S. household every year for 20 years, or $28,300 by 2038. Also, average wages are $1.34 per hour higher after 20 years. Finally, workers and families benefit indirectly from time savings, reduced costs, and a more dynamic economic and employment environment.

Modernized, improved, and expanded infrastructure can shift U.S. business into a higher gear. Infrastructure investment boosts productivity across all sectors of the economy, allowing businesses to do more with less as they see fewer delays, eliminate unnecessary costs, and overcome drags on efficiency that harm U.S. competitiveness.

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Infrastructure investment is good for America. An investment of this scale adds $5.9 trillion to GDP over 20 years as a result of the average annual real GDP growth rate increasing by 0.10 percentage point over that time period.

The unique benefit of infrastructure investment is its ability to drive productivity growth. Over 20 years, every additional $1 invested in infrastructure drives roughly $3.70 in additional economic growth. This isn’t just about delivering for U.S. businesses and workers now. This is about creating a new foundation for our economy to be more competitive for the foreseeable future.