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Infrastructure New Study: Reinvesting in U.S. Infrastructure Would Raise Average Household Disposable Income by $1,400 Per Year

Feb 1, 2019

Washington – New economic analysis from Business Roundtable reveals that a significant reinvestment in U.S. public infrastructure systems would add $1,400 in disposable income for the average U.S. household every year for 20 years and create 1.1 million additional new jobs over the next decade.  

Prepared by the Interindustry Forecasting Project at the University of Maryland, the economic analysis shows that every $1 invested in infrastructure drives roughly $3.70 in additional economic growth.

"From crumbling roads to outdated water systems, America’s aging infrastructure has been an impediment to maximizing economic growth,” said Mike Burke, Chairman and CEO of AECOM and Chair of the Business Roundtable Infrastructure Committee. “Making big investments to modernize our highways, bridges, airports and waterways will produce greater returns for all Americans. Workers will see more job opportunities and larger wages. Families will see higher household incomes. And businesses can shift into a higher gear as renewed infrastructure provides our economy with a stronger foundation.”

The study analyzes the economic impacts of the following scenario: (1) a $737 billion investment 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. This investment would return infrastructure systems to a state of good repair, expand capacity to meet future demand and fund innovative approaches to future infrastructure challenges. 

For U.S. workers and families:

  • Average wages would rise by $1.34 per hour after 20 years; and
  • Time savings and reduced costs would be achieved from modernized infrastructure.

For the broader U.S. economy:

  • 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: brt.org/delivering-for-america.