Infrastructure includes transportation as a central element, but also encompasses a range of structures and systems that support the economy. Water, energy, and communications systems are included, and they often land on infrastructure to-do lists.
Having those things, and having them in good shape, is a fundamental building block for growth, economists say. It paves the way for things like exports, tourism, and the sharing of information.
But building or repairing the systems can also add some jobs in the near term. Mark Zandi, chief economist at Moody's Analytics, estimates that Obama's $60 billion in proposed infrastructure investments would create 400,000 jobs. That's no magic fix for the nation's high unemployment rate. But the spending would come at a time when many construction workers are unemployed.
More important gains come over the long term. Consider one simple example: Maintaining roads and bridges in good repair, or investing in urban light-rail systems, means families can spend less on gasoline or new tires and more on other things. Economists say that means more US jobs, and more of them in sectors like professional services or entertainment rather than car repair.
