Innovation Files has moved! For ITIF's quick takes, quips, and commentary on the latest in tech policy, go to itif.org

Innovation Fact of the Week: Insufficient Infrastructure Investment Will Cost U.S. Economy $4T & 2.5M Jobs by 2025

INfrastructure

(Ed. Note: The “Innovation Fact of the Week” appears as a regular feature in each edition of ITIF’s weekly email newsletter. Sign up today.)

Investment in U.S. infrastructure lags behind the levels necessary to maintain the country’s roads, bridges, ports, railways, and other transportation networks. As this infrastructure deteriorates, U.S. businesses face increasing transportation costs, while households face increasing water and electricity service costs. The American Society of Civil Engineers estimates that by 2025, this investment deficit, if left alone, will cost the U.S. economy $4 trillion and 2.5 million jobs.

Maintaining current standards of surface transportation infrastructure will require an investment of approximately $2 trillion through 2025, of which only $941 billion has been earmarked, a 54 percent deficit. Maintaining current standards of water infrastructure (such as drinking water and sewage systems) will require an investment of $150 billion in the same period, of which only $45 billion has been earmarked, a 70 percent deficit.

For more on this issue, including other areas of the U.S. economy where investment isn’t sufficient, see ITIF’s recent report, “Restoring Investment in America’s Economy.”

Read last week’s Innovation Fact of the Week

Photo Credit: Joe Jungmann via Flickr

Print Friendly

About the author

John Wu is an economic research assistant at ITIF His research interests include green technologies, labor economics, and time use. He graduated from the College of Wooster with a bachelor of arts in economics and sociology, with a minor in environmental studies.