DOT Economist: Increased Spending Not a Quick Fix

  • Sep 17, 2008

The U.S. Department of Transportation's chief economist, Jack Wells, offered an explanation on the agency's blog yesterday about the impact of transportation spending, particularly in how it affects job creation and short-term economic growth. "It's really more correct to say that the billion dollars 'supports' . . . jobs because the actual number of new jobs created depends on how much unemployment there is when the highway spending starts," he wrote.

"It takes a long time for these jobs to be created. Infrastructure construction requires a long series of steps to plan, design, get environmental clearance on, and construct infrastructure projects," Wells added. "Only about 27 percent of the funds, on average, are actually spent ('outlayed') in the first year, while another 41 percent are spent in the second year."

To read Wells' entire blog entry, go to http://fastlane.dot.gov.

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