Authors

Ray C. Fair

Document Type

Discussion Paper

Publication Date

8-1-2019

CFDP Number

2187

CFDP Pages

28

Journal of Economic Literature (JEL) Code(s)

H41, H5, H62

Abstract

This paper examines the history of U.S. infrastructure since 1929 and in the process reports an interesting fact about the U.S. economy. Infrastructure as a percent of GDP began a steady decline around 1970, and the government budget deficit became positive and large at roughly the same time. The infrastructure pattern in other countries does not mirror that in the United States, so the United States appears to be a special case. The overall results suggest that the United States became less future oriented beginning around 1970. This change has persisted. This is the interesting fact. Whether it can be explained is doubtful.

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Economics Commons

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