The deteriorating state of U.S. surface transportation infrastructure was responsible for $130 billion in household and business losses in 2010 and—if the decline continues through a lack of investment—will cost the nation more than 870,000 jobs and suppress growth of the Gross Domestic Product by $3.1 billion by 2020.

Those are the primary findings of Failure to Act: The Economic Impact of Current Investment Trends in Surface Transportation Infrastructure, a new report from the American Society of Civil Engineers (ASCE). The report was produced by the Economic Development Research Group of Boston.

“Clearly, failing to invest in our roads, bridges, and transit systems has a dramatic negative impact on America’s economy,” said ASCE President Kathy J. Caldwell, P.E., F.ASCE. “The link between a nation’s infrastructure and its economic competitiveness has always been understood. But today, for the first time, we have data showing how much failing to invest in our surface transportation system can negatively impact job growth and family budgets. This report is a wakeup call for policymakers because it shows that investing in infrastructure contributes to creating jobs, while failing to do so hurts Main Street America.”

The report shows that an absence of surface transportation infrastructure investment within 10 years would lead to an added $430 billion in transportation costs to U.S. businesses; a slide in household incomes of more than $7,000; and a $28 billion decline in U.S. exports. The U.S. would lose almost 877,000 jobs, primarily in the professional, business, and medical sectors, and those persons employed would receive a cut of almost 30 percent in their paychecks.

According to ASCE, policymakers would need to invest approximately $1.7 trillion between now and 2020 in the nation’s public transit and highway systems to bring the infrastructure up to tolerable levels. The U.S. is currently on track to spend $877 billion during that period.

The text of the report is available online.

Share: