Question
Innovations and investment have contributed to economic growth during the past two centuries. Develop and defend a method for appraising the contribution of the interstate highway system to U.S. economic growth from 1970 to the present. Obviously, you will have to simplify the problem.
Innovations and investment have contributed to economic growth during the past two centuries. Develop and defend a method for appraising the contribution of the interstate highway system to U.S. economic growth from 1970 to the present. Obviously, you will have to simplify the problem.
Explanation / Answer
a first class system of interstate highways, life in America would be far different --- it would be more risky, less prosperous, and lacking in the efficiency and comfort that Americans now enjoy and take for granted. People would be crowded into more densely packed inner cities, intercity travel would occur less often and be more cumbersome; freight charges would be higher and, as a consequence, so would prices. Vacation travel would be more restricted.
The Dwight D. Eisenhower System of Interstate and Defense Highways is in place and celebrating its 40th anniversary, must surely be the best investment a nation ever made. Consider this:
It is not an exaggeration, but a simple statement of fact, that the interstate highway system is an engine that has driven 40 years of unprecedented prosperity and positioned the United States to remain the world's pre-eminent power into the 21st century.
While it is not typically thought of in this way, the system is in reality a gift from one group of people --- highway users --- to the nation as a whole, which has reaped a gain of at least $6 in benefit for each $1 spent in construction. And that's just the beginning --- there are additional benefits such as higher employment rates and greater economic opportunity that are simply beyond quantification. Fortunately, the group of people who paid for the interstate highway system is sufficiently large that it's difference from the nation as a whole is virtually without distinction. But it is a worthy difference to keep in mind as a backdrop for public policy deliberations over future funding of highways.
This report provides an assessment of the manifold benefits of the interstate highway system. Research by leading transportation authorities and standard statistical methods have been used to estimate the impacts of the interstate highway system. The imperative for upgrading the interstate highway system and other super-highways is described and shown to be readily affordable within the capability of present highway user fee revenue.
The interstate highway system has contributed mightily to the economic growth and quality of life in America. The interstates and other super-highways will continue to contribute to economic growth and improved quality of life if necessary investments are made. In large measure, the interstate highway system has democratized mobility in the United States, providing virtually all Americans with the ability to move quickly to any destination within their communities and to travel throughout the nation, inexpensively, and at whatever time or date they desire.