What is the future cost of U.S. crumbling infrastructure?

Continuing to neglect US deteriorating infrastructure could prove costly long-term, according to a new report. How much could U.S. crumbling infrastructure cost the economy in coming years?

The American Society of Civil Engineers (ASCE) recently released a report titled Failure to Act: Economic Impacts of Status Quo Investment Across Infrastructure Systems, analyzing the country’s growing infrastructure needs and how failure to address them could be devastating for the national economy.

Failure to address the country’s crumbling infrastructure could result in the loss of $10 trillion in gross domestic product (GDP) and $23 trillion in total business productivity by 2039, all while costing American households an additional $3,300 per year, according to the report.

Without major investments of nearly $13 trillion in the country’s roads, bridges, airports, transit systems, water supplies, power grids and more through 2039, the United States could experience massive job loss and a stark reduction in international trade.

According to the report, unemployment as a result of deteriorating infrastructure could reach 3 million jobs by 2039, with U.S. exports expected to drop by $2.4 billion and the country expected to lose $4 trillion in total trade.

Currently, just $7.3 trillion of the $12.9 trillion needed to address the concerns has been allocated, leaving a $5.6 trillion investment gap needing to be filled.

But according to the report, prioritizing the country’s infrastructure with targeted investments in the coming years could mitigate some of these long-term economic consequences, reducing the drop in GDP by 79%, the drop in total business productivity by 80% and the cost for American households by 78%.

Also read: How can the US build and maintain infrastructure to meet its future requirements?

“America’s infrastructure bill is overdue, and we have been ignoring it for years,” said Tom Smith, ASCE executive director. “There’s no better way to jumpstart the economy, while also lessening the financial burden on businesses and families, than by making a down payment on our infrastructure now -- transit systems, bridges, water treatment plants, and the grid -- to ensure these systems are sustainable, resilient and safe for communities across the nation.”

Researchers said they believe this can be achieve by investing an additional $281 billion per year into the country’s crumbling infrastructure, something experts said they think will be more likely to happen than in years past due to the coming inauguration of President-elect Joe Biden.

“America’s cities, towns and villages are ready to work with Congress, President-Elect Biden and his Administration to break out of this vicious cycle of emergency repairs and get our nation’s infrastructure fixed,” said said Clarence Anthony, CEO and executive director, National League of Cities.

Source: Silive

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