ABSTRACT
This chapter analyzes the implications for output and employment of public infrastructure investment vis-a-vis economic growth for the United States in a multisectoral context with the help of a mathematical model. It explains specific policy scenarios based on an assessment of the nation’s infrastructure needs in four core areas— transportation, energy, water systems and public buildings— and estimates the employment that would be created if the policies were implemented with a specific focus on manufacturing employment. The chapter examines what the long-run impact of such a program would be in terms of productivity and overall economic growth. The macroeconomic multisectoral perspective used pays special attention to the employment impacts of an expanded infrastructure investment program. This is important since both the Obama and the Trump administrations’ infrastructure policies are directly tied to employment and job creation.
