U.S. Infrastructure: 1929-2023

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 stock as a percent of GDP began a steady decline around 1970, and thegovernment 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 overallresults suggest that the United States became less future oriented beginning around 1970, an increase in the social discount rate. This change has persisted.  This is the interestingfact. The paper contains speculation on possible causes.

Keywords: infrastructure, budget deficit, social discount rate