There is an urgent need for widespread reinvestment in American infrastructure. A modern infrastructure system is key to unleashing the full productive potential of the U.S. economy. In recent years, however, public-sector investment in infrastructure has dwindled, leaving many critical systems in disrepair and hampering U.S. competitiveness and productivity. As we continue to focus on building a broad-based economic recovery and creating more American jobs, public spending on infrastructure is urgently needed to spur economic activity, unlock private investment, and reinvigorate the labor force. This study is designed to quantify and advocate for the benefits of substantial investment in American infrastructure by using an industry-based macroeconomic model to estimate the economic impacts of a fiscally responsible investment of $979 billion over ten years in surface transportation, water and wastewater, aviation, water resources, transportation, and broadband. This study also takes the crucial step of establishing a “new normal” level of public-sector commitment to maintaining American infrastructure.

Investment of $979 billion over 10 years in surface transportation, water and wastewater, aviation, water resources and transportation, and broadband would mean the following for the broader U.S. economy:

• $8.2 trillion would be added to the U.S. Gross Domestic Product over 20 years;

• Roughly $3.82 in additional economic growth would be generated for every additional $1 invested over 20 years; 

• 1.2 million additional new jobs would be created by 2030;

• The private sector would invest an additional $2.4 trillion over 20 years, including $1.9 trillion in additional business investment;

• Annual labor productivity would be 0.55 percent higher than the baseline over 20 years.

Infrastructure investment of this size would mean the following for U.S. workers and families:

• Household disposable income would increase by an average of $1,800 every year for 20 years;

• Average wages would rise by $1.47 per hour by 2040; and

• Workers and families would benefit indirectly via time savings, reduced costs and a more dynamic economic and employment environment.