ECONOMIC REPORT OF THE PRESIDENT

C H A P T E R 6
THE ECONOMIC BENEFITS
OF INVESTING IN U.S.
INFRASTRUCTURE
Transportation infrastructure has been a key ingredient of economic
growth in this country. Ships and ports originally enabled the economic
development of the U.S. colonies by fostering the export of natural resources
and commodities and the import of manufactured products. Canals and
systems of dams and locks on major waterways first opened up the interior
of the country to global trade. Railways enabled the rapid expansion to the
West, providing an efficient and reliable cross-country option for moving
passengers and goods. Combined with the development of automobiles and
freight trucks, roads and highways—particularly the Interstate Highway
System—became the backbone of inter- and intra-state transportation,
offering households and businesses easily accessible and affordable transportation.
Airplanes, especially in this modern era of globalization, have
fostered the expansion of international trade, the spread of new technology,
and the exchange of information, accounting for about a third of the value
of U.S. exports (U.S. Department of Transportation 2015a).
In each of these cases, investments in infrastructure not only contributed
to increases in economic output, but also transformed the country. The
geographic and modal distribution of infrastructure more broadly affects
where people live and work, how we move goods from production to consumers,
and how much carbon we emit. This chapter explores key aspects
of our Nation’s infrastructure: its current quality; the potential benefits of
infrastructure investment; why now is an opportune time to increase it;
the mechanisms through which transportation is typically funded; and the
Federal, State, and local roles that make all this possible.
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