New economic analysis from Business Roundtable reveals that a significant reinvestment in U.S. public infrastructure systems would add $1,200 in disposable income for the average Tennessee household every year for 20 years and create 16,000 additional new jobs in the Volunteer State over the next decade.
Prepared by the Interindustry Forecasting Project at the University of Maryland, the economic analysis shows that as a result of increased infrastructure investment over a 20-year period, Tennessee would benefit from:
- $60 billion of additional output from personal and non-tradable services
- $28 billion of additional output from durables manufacturing
- $27 billion of additional output from finance, insurance and real estate
The study also shows that, nationally, infrastructure investment would raise wages by $1.34 per hour and, for every dollar invested in infrastructure, economic growth would increase by $3.70 over a 20-year time horizon.
The study analyzes the economic impacts of the following scenario: (1) a $737 billion investment is made over 10 years in America’s surface transportation, water and sewer systems, aviation, water resources and water transportation; and (2) thereafter, a new normal for infrastructure spending by holding public capital investment infrastructure steady at a fixed share of GDP, in the range of 1.2 percent. This investment would return infrastructure systems to a state of good repair, expand capacity to meet future demand and fund innovative approaches to future infrastructure challenges.
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