Friday, November 1, 2013
US Spending On Infrastructure Has Collapsed Since 2002
Infrastructure in the US is primarily done by the states with funding from the federal government. Despite the ability of the government to fund infrastructure investment at very low interest rates, spending has fallen sharply. The decline in infrastructure spending has harmed the recovery and it does not auger well for the future. The deferred spending on infrastructure will have to done in the future at a much higher cost. If the US were a business the collapse in investment would be a signal to the market that the firm was in trouble.