(Roughly) Daily

“Investment in infrastructure is a long term requirement for growth and a long term factor that will make growth sustainable”*…

So it’s a problem that infrastructure here in the U.S. is so very expensive. Why is that?

As Congress argues over the size of the infrastructure bill and how to pay for it, very little attention is being devoted to one of the most perplexing problems: Why does it cost so much more to build transportation networks in the US than in the rest of the world? In an interview in early June, Transportation Secretary Pete Buttigieg acknowledged the problem, but he offered no solutions except the need to study it further.

Biden’s original infrastructure proposal included $621 billion for roads, rail, and bridges. His plan is billed not only as an infrastructure plan but one that would help respond to the climate crisis. A big part of that is making it easier for more Americans to travel by mass transit. The Biden plan noted that “America lags its peers — including Canada, the U.K., and Australia — in the on-time and on-budget delivery of infrastructure,” but that understates the problem.

Not only are these projects inordinately expensive, states and localities are not even attempting to build particularly ambitious projects. The US is the sixth-most expensive country in the world to build rapid-rail transit infrastructure like the New York City Subway, the Washington Metro, or the Chicago “L.” And that’s with the nation often avoiding tunneling projects, which are often the most complicated and expensive parts of any new metro line. According to the Transit Costs Project, the five countries with higher costs than the US “are building projects that are more than 80 percent tunneled … [whereas in the US] only 37 percent of the total track length is tunneled.”

America’s infrastructure cost problem isn’t just confined to transit, it’s also the country’s highways. Research by New York Federal Reserve Bank and Brown University researchers reveals that the cost to construct a “lane mile of interstate increased five-fold” between 1990 and 2008. New construction — widening and building interchanges and building new sections of road altogether — is where the bulk of the problem lies, says one of the researchers, economist Matthew Turner. (The cost of “heavy maintenance” like resurfacing increased as well, but Turner said that’s due almost entirely to the rise in the price of certain paving materials.) 

According to a report by the Brookings Metropolitan Policy Program, the nation’s transit spending “fell by $9.9 billion in inflation-adjusted terms” over the last 10 years. In comparison with similar countries, America spends a relatively small amount of its GDP (1.5 percent) on public infrastructure, while the UK spends 2 percent, France 2.4 percent, and Australia 3.5 percent.

The problem is fundamentally that the US is getting very little for what it builds

Infrastructure: “Why does it cost so much to build things in America?”- this is why the U.S. can’t have nice things. From @JerusalemDemsas in @voxdotcom. Eminently worth reading in full.

Chanda Kochhar

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As we lay the foundation, we might recall that it was on this date in 1886– the anniversary of the date in 1864 the Abraham Lincoln set aside Yosemite Valley as a preserve— that Congress recognized and established by law (24 Stat. L.103), the Division of Forestry in the Department of Agriculture.  Created in 1881 by fiat of the then-Commissioner of Agriculture, it’s initial remit was to assess the quality and conditions of forests in the United States.  In 1891, its mandate was expanded to include authorization to withdraw land from the public domain as “forest reserves,” to be managed by the Department of the Interior– the precursor to America’s National Forest and National Park program.

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