February 1, 2012
A study has found that over two years, one dollar spent on infrastructure construction produces roughly double ($1.92) the initial spending in direct and indirect economic output.
Researchers at the College of William and Mary’s Thomas Jefferson Program in Public Policy determined each dollar spent on infrastructure generates roughly 35 cents in indirect economic activity for manufacturers, 20 cents for professional and business services providers, and 10 cents for the finance, insurance, real estate, rental, and leasing sector. Over 20 years, one dollar in aggregate infrastructure spending generates 96 cents in taxes. Each dollar invested in highways and streets returns approximately 35 cents in tax revenue over two decades. The study was commissioned by Associated Equipment Dealers.