President

When the bridge becomes congested, users of the bridge may urge thegovernment to invest in expanding its capacity. If people can use the bridgefor free, frequent users are likely to insist that greater investment is a goodidea, while those who do not use the bridge will object to spending taxdollars on the project. If the bridge is financed by tolls that are the sameat all times of day, people who use the bridge at peak times will receive thebenefit of extra capacity, even though they do not bear the full cost of theexpansion. People who use the bridge at uncongested times will pay more intolls to finance the expansion, but receive no benefit. Thus, peak-time usersmay support expansion even if the benefits to society do not outweigh theconstruction costs.Setting aside the question of whether the bridge should be expanded,the congestion described above reflects a system that encourages inefficientchoices. Each person who uses the bridge decides when to cross withoutconsidering the costs this creates for others because of increased congestion.Addressing this inefficiency can help ensure that existing capacity is used asefficiently as possible.The questions of building the bridge—who should provide it, how itshould be paid for, and when new capacity should be constructed—are allpresent to different degrees in debates about the major infrastructure systemsin the United States. The next section gives an overview of some of thesesystems and some of the specific issues they face.Current State of the Nation’s InfrastructureThis section discusses aspects of the U.S. transportation, energy, andcommunications infrastructure. Economic growth has meant increaseddemand for transportation, raising questions about how best to addresscongestion. In energy and communications, changes in technology and marketstructure are transforming the way that infrastructure serves these sectors.RoadsRoads play a central role in the U.S. economy. Both firms and consumersdepend on cars and trucks in their everyday economic lives. Most U.S. freightshipments take place by road; for example, trucks handle over 70 percent ofU.S. freight shipments (by value). On average, drivers travel 29 miles by careach day and spend almost an hour a day behind the wheel. Americans useroads in all parts of their daily lives, from commuting to work to shoppingand visiting friends.The amount of traffic on U.S. roads has been increasing steadily for decades.As traffic has increased, priorities have shifted from building new connections140 | Economic Report of the President