Thursday, November 3, 2011

Maybe we don't have an infrastructure problem

See The U.S. infrastructure argument that crumbles upon examination by Charles Lane in the 10-31 Washington Post.
Excerpts:
"For all its shortcomings, U.S. infrastructure is still among the most advanced in the world — if not the most advanced. I base this not on selective personal experience but on the same data alarmists cite."

"When you compare America’s WEF (World Economic Forum) rankings with those of the 19 other largest countries, it stands second only to Canada, which is lightly populated — and whose infrastructure is linked with ours.

Among the 20 most populous countries, the United States ranks behind France, Germany and Japan, in that order. This would seem to confirm the case for U.S. inferiority in the developed world.

But France and Germany, in addition to being substantially smaller than the United States, are part of the European Union, a borderless single market from the Baltic Sea to the Black Sea. Sure enough, when you average out the scores of all 27 E.U. nations, the United States beats them by a clear margin."

"And while that D from the American Society of Civil Engineers is undoubtedly sincere, the organization has a vested interest in greater infrastructure spending, which means more work for engineers. The engineers’ lobby has given America’s infrastructure a D in every one of its report cards going back to 1998, except for 2001, when the mark was D-plus.

Top-notch though it is, the U.S. infrastructure could use an upgrade; by their very nature, roads, bridges and the rest require constant maintenance. The effort could boost both current employment and the economy’s capacity to grow in the future.

But it’s not just a matter of turning on the money tap and letting it flow. Though roads, rails and levees represent huge, upfront capital expenditures, the long-term benefits are often difficult to calculate objectively. The whole business is fraught with uncertainty, trade-offs and pork-barrel politics.

Nor are the economics of public works simple. After its economic bubble burst, Japan tried to restart growth with more than $6 trillion in infrastructure spending between 1991 and 2008. It ended up with little to show for it but a swollen national debt and lots of bridges to nowhere."

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