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An Economic Analysis of Infrastructure Investment

The Treasury Department and Council of Economic Advisers say now is the best time for the federal government to make widespread infrastructure investments.

In its Economic Analysis of Infrastructure Investment, the Treasury Department and Council of Economic Advisers examines President Obama's Labor Day announcement to refurbish and expand the country's infrastructure. Obama pledged $50 billion up front, and authorized the creation of a National Infrastructure Bank.

The Treasury and council determined that now is the best time to boost investment in transportation infrastructure. Sound infrastructure investments have long-term benefits, such investments will benefit the middle class, underutilized resources can improve and expand infrastructure, and the public is demanding these investments.

Not only will these investments improve U.S. infrastructure, but they will create a significant number of middle-class jobs. For the business community, public infrastructure investments typically result in large private sector productivity gains. Excellent infrastructure investments have also been shown to improve economic growth, productivity, and land values, while positively affecting economic development, energy efficiency, and manufacturing.

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