Failure to Act : The Impact of Infrastructure Investment on Americas Economic Future - ASCE Update Report
The ASCE has today released a report Failure to Act: Closing the Infrastructure Investment Gap for America’s Economic Future as an update to the Failure to Act comprehensive report.
This Update addresses the current infrastructure gaps between today’s needs and investment and how they will affect the future productivity of industries, national competitiveness, and future costs to households.
The update shows that while some of the sectoral infrastructure investment gaps are showing modest signs of improvement, the overall U.S. investment funding gap is still quite substantial and had grown from earlier ASCE reports. And the funding gap for Surface transport has deteriorated markedly and now stands at an estimated $4+ bn (at 2015 values)
The negative economic consequences of insufficient investment continue to be a significant drag on economic productivity.
Infrastructure is the backbone of the U.S. economy and a necessary input to every economic output. It is critical to every nation’s prosperity and the public’s health and welfare. Each Failure to Act study demonstrates that deteriorating infrastructure, long known to be a public safety issue, has a cascading impact on our nation’s economy, impacting business productivity, gross domestic product (GDP), employment, personal income, and international competitiveness.
The economic stakes of America’s infra- structure systems are high because its condition can either help or hurt the productivity of the economy.
The cost of deteriorating infrastructure takes a toll on families’ disposable household income and impacts the quality and quantity of jobs in the U.S. economy. From 2016 to 2025, each household will lose $3,400 each year in disposable income due to infrastructure deficiencies; and if not addressed, the loss will grow to an average of $5,100 annually from 2026 to 2040,
If this investment gap is not addressed throughout the nation’s infrastructure sectors by 2025, the economy is expected to lose almost $4 trillion in GDP, resulting in a loss of 2.5 million jobs in 2025.
Full report here
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