I would think a decline in government spending is a factor although it’s a guess on my part
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It absolutely plays a part in the whole economic mix. I was recently thinking about that, and I don’t want to get off on a tangent, but in some areas Congress has allocated funds that aren’t being spent - I was thinking about what the economic impact that might have in general. I’m sure it varies program to program but I was just thinking in general and if anyone is researching that at all.
Chris, help me out here. Is “Public construction spending” here things like
schools, jails, roads, airports, MUD, water, etc ?
With the declines in manufacturing construction spending and flatlines in
public construction spending, it’s not a good thing, right ? Throw in the fact
we are running huge federal deficits on top of it, calling this a win seems wrong
and on the wrong path.
First off, the “declines” are just off a peak the previous year. Still much higher than the previous decade
Secondly, the public construction remains too high. I found this nugget which explains the increase
… The Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law, is a $1.2 trillion legislative package signed in 2021. It invests $550 billion in new funding to modernize roads, public transit, water systems, the power grid, and broadband internet access across the United States. [1, 2]
Core Funding Categories
The IIJA’s major allocations provide long-term investments in American infrastructure:
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Transportation ($274 billion): Includes $110 billion for roads, bridges, and major projects, $66 billion for rail, $39 billion for public transit, and $25 billion for airports. [1]
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Energy & Power ($73 billion): Focuses on modernizing the power grid, promoting clean energy, and expanding the national network of electric vehicle (EV) charging stations. [1, 2]
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Broadband ($65 billion): Aims to expand high-speed internet access to unserved and underserved rural communities. [1, 2]
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Water Infrastructure ($55 billion): Invests in clean drinking water, replacing lead service lines, and upgrading wastewater systems. [1, 2]
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Environmental Remediation ($21 billion): Dedicated to cleaning up Superfund and Brownfield sites, reclaiming abandoned mines, and capping orphaned oil and gas wells. [1]
Local Impact and Implementation
Implementation of the law is largely executed by the U.S. Department of Transportation and other federal agencies, which distribute grants directly to state and local governments. For example, states like California are utilizing this funding to repair bridges, expand zero-emission vehicle infrastructure, and modernize public transit networks. [1, 2, 3]
To track ongoing project funding opportunities or see how funds are being allocated in your area, you can visit the US Department of Transportation IIJA Portal. Detailed project trackers and state-specific breakdowns are also available on Build
If Canada’s manufacturers are considering moving like Toyota, Taiwan Semi and Apple have done, who’s winning?
Right now it’s all talk.
I’m not seeing any winning in the real numbers. The leading indicators don’t seem to be great either.
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So you think the spike in public infrastructure
investment was a bad thing for the US ?
That’s kind of a wild take
These all look like good things; maybe that’s why it got bipartisan support.
When you’re broke, do you remodel your kitchen?
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We are spending like drunken sailors on other stuff. Is that better or would you rather create jobs with it?
I’d personally rather get debt under control but neither political party is interested in that.
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When you have bridges falling down , roads crumbling, an ancient electrical grid, abandoned wells, etc…that’s not a remodel. That’s more like fixing your leaking roof.
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The current guy has been pausing and cancelling spending, rewriting the regulatory criteria and priorities of that law.