Neglected Nation : Financial Times Wednesday May 11, 2016

Spurred by an ASCE (American Society of Engineers) report on investment spending on infrastructure in the United States, the Financial Times published a full-page article on the consequences of the gap between what the government spends and what the nation needs.
Sam Fleming, the author, in Manhattan in New York City began the article by touring Pennsylvania Station. He noted, based on the observations of Drew Galloway, the chief planner for Amtrak's north-east corridor, the much needed repair of train tunnels that connect New Jersey with New York City that run through the station.

Since the ASCE report covered surface transport, water and wastewater, electricity, airports, and inland waterways/marine ports, Fleming wrote, "Bridge collapses, train derailments, fires and shutdowns on the Washington DC metro, drought in the west and an appalling lead contamination scandal in Michigan have highlighted the legacy of decades of underfunding, mismanagement and neglect" (p. 7). Fleming cited the ASCE's projection of "a $1.44tn investment funding gap between 2016 and 2025, warning of a mounting drag on business activity, exports and incomes" (p. 7). The consequence, he wrote, constituted a "nearly $4tn in lost gross domestic product by 2025 as costs rise and productivity is impeded" (p. 7).

Although Congress has resisted increases to infrastructure spending, after the $800bn stimulus package in 2008-2009, it did pass in 2015, a $305bn bill for roads and surface transportation. Last year, the total spending on capital projects resulted in 3.4 percent of U. S. GDP, $611bn, as calculated by the Council of Economic Advisors in the executive branch.  Presidential candidates, Hillary Clinton, Bernie Sanders, and Donald Trump, have all acknowledged the need for funding. Sentiments against growth in government make many political watchers gloomy about the prospects for future funding.

State and local governments have work-arounds. Public private partnerships, "where the private sector provides funding for construction and maintenance in return for a stream of revenue" (p. 7), investment by foreign funds, issuing bonds, consumption, gasoline or other taxes are some of the methods state and local governments have raised funds. State and local governments, however, continue to look to the federal government for strategic funding and coordination.