Infrastructure spending myth

As the dust continues to settle from President-elect Donald Trump’s surprising victory, one idea is quickly gaining bipartisan currency in Washington: more infrastructure investment. House Democratic leader Nancy Pelosi has pledged to “work together” with the Trump administration to “quickly pass a robust infrastructure jobs bill.”

The problem with politically created infrastructure jobs is that there is little evidence that more infrastructure spending is a good way to boost the economy or promote job growth. In reality, these projects often fail to deliver on gains while costs spiral out of control, leading Oxford University economic geographer Bent Flyvbjerg to propose The Iron Law of Megaproject Management: “Over budget, over time, under benefits, over and over again.”

Under federal grants, expansions are prioritized over routine maintenance, which is generally ineligible for federal funding. As a result, states and municipalities chasing federal dollars have an incentive to gold-plate projects in an attempt to grab as much “free” money as possible.

Lobbying is also a factor. The construction industry has an incentive to warn of doom and gloom over our infrastructure. But what the infrastructure lobby doesn’t say is that the number of structurally deficient bridges has been steadily declining for 25 years, according to the Bureau of Transportation Statistics. The same goes for the improving pavement quality of major highways.

Most of the infrastructure problems exist in cities, where regional and municipal leaders have allowed mass transit systems, water and wastewater networks, airports and local streets to decay over the years. Instead of expecting Washington to bail them out of their provincial troubles, Americans should demand that their local leaders stop creating local infrastructure problems in the first place.

The notion that federal infrastructure spending isn’t an economic panacea won’t appeal to politicians more interested in claiming credit than solving problems. But if they want to support infrastructure improvements that can do real good, responsible politicians need to think and act locally.