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June 11, 2008

Are we spending enough on infrastructure?

Roads, bridges, sewers and public buildings are, to most of us, not very exciting, yet we rely on them every day. Indeed, if these infrastructure investments didn't exist, our economy likely wouldn't function. So are we paying enough attention to our infrastructure? Listen

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Probably roads and schools get the most attention, but I think your characterization of infrastructure is right on the mark. We don't think, obviously, about public buildings where, for example, justice is carried out or we don't think about the sewer system. We do see schools, we do see roads, but the point is that infrastructure, as you said, is extremely important. And economists are concerned - many are concerned - that there has been a shift in government spending over, really, the last 30 years away from spending on infrastructure to other things. And some economists have estimated that we now have an infrastructure backlog. For example, here in North Carolina, it may be in the tens of billions of dollars. And I think the issue here is the one you pointed out. If we don't invest in infrastructure, that can increase private costs. For example, if we don't build roads or maintain roads, we are going to have probably extra costs for car repairs. If we don't build schools, we are not going to have learning taking place, and we need educated people for our future. If we don't have an adequate sewer system, we may not have an adequate water supply, and we, of course, have seen recently in North Carolina what that can do. So infrastructure is often not a headline-grabbing government function, but it is very key to our economy."

Posted by Dave at June 11, 2008 08:27 AM