Infrastructure Investment as an Economic Stimulus Tool
Thursday, October 29, 2020
In times of economic struggle — such as the recession that abruptly arrived with the COVID-19 pandemic — analysts and advocates promote an array of options as effective tools for stimulating the economy. One of the most frequently suggested options is infrastructure spending. Proponents of infrastructure spending during dire economic times view it as a productive job creator and essential foundation for a long-term recovery and return to sustained prosperity.
Brian Raff, director of Communications and Public Affairs for the American Institute of Steel Construction (AISC), cites a 2015 study by the Duke Center on Globalization, Governance, and Competitiveness to demonstrate infrastructure investment’s potential as an economic stimulus.According to the study, expanding federal funding in alignment with the U.S. Department of Transportation’s request to improve conditions and performance of transportation infrastructure ($114.2 billion per year) would lead to more than 2.47 million jobs (58 percent more jobs than at current funding levels) and more than $404 billion in total economic impact.