How Trump Could Rebuild America
BERKELEY – In the United States today, with partisan polarization at record levels, there is still at least one policy goal on which there is broad consensus, not only among Republicans and Democrats, but also among business and labor leaders, states and cities, and ordinary citizens: infrastructure.
The US has been short-changing infrastructure for years. Historically, federal, state, and local governments have together invested about 2.5% of GDP in non-defense infrastructure assets. But, over the last 35 years, federal investment as a share of GDP has dropped by more than half.
For a long time, state and local governments were able to cover the shortfall, increasing their contribution to three quarters of total spending. But when the Great Recession hit, states and cities were forced to slash their budgets. As a result, in the second quarter of this year, total public expenditure on infrastructure fell to an estimated 1.4% of GDP, the lowest share on record.