Federal Infrastructure Investment as a Percentage of GDP, 1950-2008. The graph falls from a maximum of about 1.25% in the early 1950s to about .2% in 2008.
Photo credit: USA Inc.
In a recent report, the McKinsey institute argued that America’s poor infrastructure is holding back its economic development. The top economist at the World Bank, Justin Lin, appears to agree. Earlier this week Lin said playing catch-up with China’s infrastructure investments would do the United States some good.
Add one more voice to those in favor of infrastructure investment: Mary Meeker, financial analyst at Morgan Stanley and author of a new nonpartisan report called USA Inc. In recent decades, Meeker observes, the United States has been spending less on productive investments, such as infrastructure and education, and more on areas of preservation, such as health care. That combination has caused America to lose its innovation edge, writes the Atlantic. (More at Infrastructurist.com . . . )