Infrastructure: How the seen crowds out the unseen

by Sandy Ikeda

So far I’ve come across no discussion of the consequences that the massive infrastructure spending touted in Stimulus Package I (there will of course be others) will have on what Nathan Glazer called “the fine structure of society” in the local communities it will impact.

A new freeway, for example, might make it possible to get from point A to point B faster, but it can also reduce the local economies of A and B, as well as those in between, to barren border vacuums. Note that this is apart from whether they will be built in a timely manner or if the measured economic benefits they generate somehow cover their construction costs.

Because nearly all of the debate has taken place within a macroeconomic framework, most public intellectuals seem to have neglected how such a massive and rapid increase in physical-infrastructure might undermine this fine structure. Some have mentioned the “bridge to nowhere” syndrome or questioned whether the stimulus spending will actually stimulate quickly enough. And a few, like my colleague Mario Rizzo, have brought up the important resource-allocation effects. But I’m talking about something different here. Continue reading