Many studies have been conducted on how infrastructure spending could affect the Gross Domestic Product of a country. All of their conclusions seem to gauge infrastructure spending to be more of a liability rather than an asset in which benefits can be generated. But let’s take a look at the benefits of infrastructure spending for our awareness:
It promotes long-term economic growth and productivity
A city’s productivity relies on the people that lives. Therefore, if an imbalance in their quality of life exists, its negative results affect their productivity. This extends to a city’s performance as a whole in terms of economic growth. Taking care of transportation systems, water supply, wastewater treatment facilities, hospitals, prisons, energy and the internet infrastructure eases the people’s livelihood. Having these simple, yet substantial needs, met keep civilians worry-free and job-centered instead. Infrastructure spending becomes an investment in itself because it aids people’s stress.
Increased momentum for small businesses
The people remain competent and efficient. Combined with confidence that a well-sustained life gives, civilians do not fear coming up with their own personal businesses. Loans are not hard to give since the government provides for a better living environment for the people keeping them driven to take their responsibility — such as paying off debts. Overall, it enhances a positive outlook from the people’s perspective keeping them inspired, creative, and persevering. This adds up to economic growth in the long run.
Infrastructure spending could help mother earth from further damage.
Infrastructure spending such as creating sustainable infrastructure or a green infrastructure maximises a land area’s potential. Adapting a green environment not only improves a city aesthetically but it improves energy and water consumption by minimising its usage and also transforming waste products into something that could fuel some industries. If there’s minimal usage of energy, there’s lesser pollution again, optimising the livelihood of the people. This is an umbrella approach to every infrastructure issue there is.
Infrastructure spending is the foundation of the next generation’s infrastructure.
“Infrastructure is out of sight and out of mind until things get wrong — when they’re so old or they have become ineffective,” according to Matti Siemiatycki of the University of Toronto. Also, he mentioned that infrastructure spending is critical since it drives prosperity, stimulates the economy and supports the quality of life.
Let’s look at the problem of traffic congestion alone. If people get stuck in traffic for more or less 2 hours every day going to work alone, there are already 4 hours taken away from a person’s productivity. Multiply that to 6 working days a week or 24 days a month. You understand the math. Fast forward, there would be approximately 1,152 hours taken away instead of being allocated to job performance. For the sake of computation, let’s just say that district or city imposes a minimum wage of US$1/hour, there arises US$1,152 burned in a year. How many workers are there again? That’s a lot of computations to do.
The point is, building high-quality infrastructure includes efficient railways. That alone somehow resolves this issue.
Stimulates the economy
A lot of these infrastructure construction projects demand high-grade innovations. Some railways may require 5G internet connections. All new electrically-run railways do require expensive capital. Some hospitals had adopted putting their patients’ data in the computers turning their back on paper records. Prisons have ditched keys opting for electronic locks. Infrastructure spending opens a lot of opportunities for advancement. As the world’s lifestyle shifts to electronic payment systems and building smart homes, the economy is driven to escalate progressively. Electronic railways do not contribute to pollution. The usage of the computer for keeping data saves trees to produce papers. Energy used to melt metals for the prison keys are conserved. All of these help the economy with the costs it minimizes.
Supports the quality of life
Also, infrastructure spending opens lots of jobs that secure a lot of people’s lives. Investing in the right projects and delivering them on time within the budget keep the people’s trust intact towards the infrastructure builders. Sustainable infrastructure, as explained earlier in number 3, adapts the natural system of water supply and waste disposal. If this is done right, it will save a lot of trees, result in decreased mortality because of minimized toxicity and it preserves the very first necessity to live, the air that you breathe.
It is undeniable that the costs to bring these benefits to the table is a fortune. But if it will assure a country’s economy, ecology, socio-political relationship and health of long-term stability, it will be worth it.