
|
The Best Stimulus for the Money
Published April 01, 2009
The tens of billions in federal stimulus funds for transportation, coming to states and regions at a
time of substantial budget difficulties, adds urgency to the question “what is the best use of
transportation dollars?” Transportation touches all aspects of our communities, but the current
economic downturn and the stimulus have placed an extra emphasis on the economic purposes
of transportation investments. Two economic goals have been paramount:
1. put as many people to work as quickly as possible, and
2. make the investments that best position the nation for long term prosperity.
With respect to the first goal, much has been made of “shovel ready” projects — those projects
that can be started immediately. The speed goal of “shovel ready” has been embraced by states
and regions across the country. The second goal has occupied a decidedly secondary position.
There has been relatively little debate over the location and types of transportation investment
that do the most to prepare the country for long-term economic prosperity. Where discussions
have occurred they tend to be cursory and anecdotal. Either it has been assumed that all “shovel
ready” projects inevitably contribute equally to long term prosperity, or it has been asserted that
selecting for the projects that do the most to position the country for long term prosperity will
slow the rate at which new money puts people to work.
Are all transportation projects of equal value to long-term economic growth? If not, is it possible
to select projects with better return and still move money and employ people in the economy
quickly? Smart Growth America commissioned the following papers to answer these questions.
The findings are encouraging. The research shows there is ample opportunity to pursue long
term prosperity through projects that are “shovel ready” — provided we pick the right projects.
The research results are doubly encouraging because, though immediate economic needs have
taken center stage, transportation’s impact on equity, neighborhoods, energy security, and the
environment remains. Real-world results show that transportation projects that help the nation
meet these broader challenges are frequently the same projects that deliver the best short-term
job production and long-term economic returns. Arthur C. Nelson,
Geoffrey Anderson,
Keith Bartholomew,
Pamela Perlich,
Thomas W. Sanchez, &
Reid Ewing
|