Cutting Surface and Air Transportation Infrastructure Investment Will Cost All Consumers and Firms While Adding to Misery for Hard-Hit Construction Industry, Association Economist Notes
In response to a new report from the American Society of Civil Engineers documenting the harm to the economy from underinvesting in transportation infrastructure, Ken Simonson, the chief economist for the Associated General Contractors of America, issued the following statement:
“Not all spending cuts are equal—cutting infrastructure investment ultimately costs the economy more than it might save in the short-term, as this study makes clear,” Simonson said, referring to ASCE’s report, Failure to Act: The Economic Impact of Current Investment Trends in Surface Transportation. “As the report cogently points out, the continued deterioration of surface transportation infrastructure ‘leaves a significant and mounting burden on the U.S. economy.’”
“Congress' failure to pass federal aviation legislation has brought approximately $2.5 billion worth of airport construction and improvement projects to a halt. The lack of action on renewing the Highway Trust Fund threatens to shut down as much as $50 billion per year of vitally needed highway and transit improvements. While the immediate victims of this neglect will be construction workers and companies, this report makes clear that the damage from underinvestment will be felt by every consumer and business.”