U.S. DOT chief economist blogs about transportation spending

U.S. Department of Transportation chief economist Jack Wells Sep. 16 blogged about transportation spending, particularly with regards to job creation and short-term economic growth.

“It’s really more correct to say that the billion dollars ‘supports'…jobs because the actual number of new jobs created depends on how much unemployment there is when the highway spending starts,” Wells wrote.

Moreover, he added, “It takes a long time for these jobs to be created. Infrastructure construction requires a long series of steps to plan, design, get environmental clearance on and construct infrastructure projects. Only about 27% of the funds, on average, are actually spent (‘outlayed’) in the first year, while another 41% are spent in the second year.”

Read Jack Wells’ entire blog entry at Welcome to the Fast Lane.