The Congressional Budget Office has estimated that direct well-targeted government spending of $185 billion a year on infrastructure would generate economic and social benefits that would exceed the cost.
Facts & Quotes
GDP per capita would increase 0.3 percent for every single point of improvement in the Transportation Index. Allowing the overall transportation performance to lag behind the average index of the top 5 performing states leaves about $1 trillion of potential GDP on the table.
For every $1 billion increase in federal investment in transportation infrastructure an estimated 27,800 jobs are created.
In 2009 the federal government spent $87 billion on transportation and water infrastructure, an increase of $6 billion over the amount spent in 2007.
Between 2003 and 2007 inflation-adjusted public spending on transportation and water infrastructure declined by $24 billion or 6 percent.
State and local governments account for about 75 percent of total public spending on transportation and water infrastructure and the federal government accounts for the other 25 percent.
In 2009 Indonesia spent 3 percent of its GDP on infrastructure.
In 2009 India spent about 4 percent of its GDP on infrastructure.
In 2009 China spent about 9 percent of its GDP on infrastructure.
In 2009 Canada spent about 2.9 percent of its GDP on infrastructure.
As a share of GDP, U.S. public spending on infrastructure has ranged from 2.3 percent to 2.5 percent since the mid – 1980’s. The peak period during the late 1950’s and early 1960’s had it at 3 percent of GDP.
Public construction spending as a percentage of GDP (TLPBLCONS/(GDP*1000) is lower than it has been over the last 20 years reaching a high of 0.023 in 2009 to its current level between 0.016 and 0.017.