Economist: Life in the Slow Lane

[Prosperity]

http://www.economist.com/node/18620944

America, despite its wealth and strength, often seems to be falling apart. American cities have suffered a rash of recent infrastructure calamities, from the failure of the New Orleans levees to the collapse of a highway bridge in Minneapolis, to a fatal crash on Washington, DC’s (generally impressive) metro system. But just as striking are the common shortcomings. America’s civil engineers routinely give its transport structures poor marks, rating roads, rails and bridges as deficient or functionally obsolete. And according to a World Economic Forum study America’s infrastructure has got worse, by comparison with other countries, over the past decade. In the WEF 2010 league table America now ranks 23rd for overall infrastructure quality, between Spain and Chile. Its roads, railways, ports and air-transport infrastructure are all judged mediocre against networks in northern Europe.

America is known for its huge highways, but with few exceptions (London among them) American traffic congestion is worse than western Europe’s. Average delays in America’s largest cities exceed those in cities like Berlin and Copenhagen. Americans spend considerably more time commuting than most Europeans; only Hungarians and Romanians take longer to get to work (see chart 1). More time on lower quality roads also makes for a deadlier transport network. With some 15 deaths a year for every 100,000 people, the road fatality rate in America is 60% above the OECD average; 33,000 Americans were killed on roads in 2010.

The country’s already stressed infrastructure must handle a growing load in decades to come, thanks to America’s distinctly non-European demographics. The Census Bureau expects the population to grow by 40% over the next four decades, equivalent to the entire population of Japan.

All this is puzzling. America’s economy remains the world’s largest; its citizens are among the world’s richest. The government is not constitutionally opposed to grand public works. The country stitched its continental expanse together through two centuries of ambitious earthmoving. Almost from the beginning of the republic the federal government encouraged the building of critical canals and roadways. In the 19th century Congress provided funding for a transcontinental railway linking the east and west coasts. And between 1956 and 1992 America constructed the interstate system, among the largest public-works projects in history, which criss-crossed the continent with nearly 50,000 miles of motorways.

But modern America is stingier. Total public spending on transport and water infrastructure has fallen steadily since the 1960s and now stands at 2.4% of GDP. Europe, by contrast, invests 5% of GDP in its infrastructure, while China is racing into the future at 9%. America’s spending as a share of GDP has not come close to European levels for over 50 years. Over that time funds for both capital investments and operations and maintenance have steadily dropped (see chart 2).

[stevenaa]

Not stingier, just putting the dollars in the wrong places, IMO.

[alexey]

Not stingier, just putting the dollars in the wrong places, IMO.

But modern America is stingier. Total public spending on transport and water infrastructure has fallen steadily since the 1960s and now stands at 2.4% of GDP. Europe, by contrast, invests 5% of GDP in its infrastructure, while China is racing into the future at 9%.

Maybe that stingy 2.4% is going to wrong places as well.

[endzone_dave]

When's the last time you've driven by construction workers and seen them working hard? We pay guys union wages to lean up against a shovel.

[Elessar78]

Not stingier, just putting the dollars in the wrong places, IMO.

Medicare, Medicaid, and Military Spending?

[Hubbs]

Medicare, Medicaid, and Military Spending?

Why do you hate the letter M?

[mardi gras skin]

I wonder what would happen if companies got a tax credit for moving some percentage of their employees to telecommuters. I know several people in jobs that could be done at home but companies are slow to adapt.

[Pick6]

I think once we see a bigger shift to teleworking for companies then traffic issues won't be what they are today. The move of the baby boomers out of the workforce and the flood of Generation X and Y into the workforce will make this more of a reality. It is coming, but change is slow.

[twa]

If we make a large shift to telecommuting with tax breaks,who are we then gonna tax to make up for the tax break and reduced gas tax income?

The Rich?

[mardi gras skin]

If we make a large shift to telecommuting with tax breaks,who are we then gonna tax to make up for the tax break and reduced gas tax income?

The Rich?

Fewer cars on the road, less infrastructure costs.

[Elessar78]

Well the article isn't really about traffic, that's just the symptom. The article is about our aging and inadequate infrastructure. Roads, bridges, railways, airports. Our policies like cheap gas, a non-investment in commuter train systems, etc increase traffic indirectly.

Something needs to be done about improving our infrastructure.

[PCS]

And of course,the Government will take the same advice they've given to many Americans and learn to be more fiscally responsible as they learn to live with less.

*

[twa]

We need more central planning to locate the ants closer to the mound

or some Orthene

[Prosperity]

nvm..........

[Elessar78]

My take is that there's very little interest in a high speed rail system, even though they are awesome. With air travel as ****ty as it's ever been I always wish there was another option. I moved from DC and my quality of life has improved just because I don't have to sit in so much traffic for every aspect of my life. There's nothing sexy about fixing existing infrastructure for the politicians. They're just hoping it doesn't fall down on their watch, whatever it is.

Everything about our American way of life is unsustainable. It's mind boggling.