Seven Myths About US Infrastructure

Abstract

We focus here on traditional infrastructure, defined as capital-intensive physical assets that are vital to the functioning of an advanced society and that broadly enable economic activity: power and energy, transportation and transit, water supply and water treatment, and digital communications. This article questions seven myths about infrastructure investment in the United States: (1) the US government can unilaterally dictate where funds are spent for most infrastructure classes; (2) the federal government owns and controls interstate highways; (3) many infrastructure projects cannot get funding; (4) the United States disfavors public–private partnerships; (5) US airports should be privatized to achieve efficiencies and improved passenger service; (6) it is easy to transition the US power grid to renewable generation; and (7) only money matters for improving infrastructure. The vast stores of public and private capital earmarked for investments in infrastructure can be readily deployed if there is stakeholder alignment, political will, sufficient planning, timely regulatory approvals, and economic viability. In contrast, misalignment of costs and benefits, a lack of economic viability or political will, or opposition from key stakeholders creates project delivery challenges.