But now that we’ve finalized the magnitude of our spending, it’s time to ask a new question: “How can we spend wisely?”
Decision-makers and the public need to remember that even the smallest of spending decisions can have enormous consequences. Not only can the choice of project type have lasting effects on an entire region, but even the construction practices selected for that project can determine its long-term success.
Maricopa County, Arizona, for instance, has long chosen to maintain concrete pavements with asphalt overlays. Yet, a report by the Arizona Department of Transportation has found that continuing to do so could cost the region an extra $1 billion over the next decade when compared to diamond grinding. Clearly, even decisions as small as maintenance technology choice can have an outsized impact.
This is not to say we should spend less. Our infrastructure spending as a percentage of GDP has fallen by roughly one-quarter over the past 60 years. Meanwhile, federal investment as a whole fell by 50 percent by the same metric between 2011 and 2018. Together, the recent Infrastructure Investment and Jobs Act and Build Back Better Act could reverse these trends and transform the nation’s infrastructure.
But to turn this raw investment into real impact will require us to spend more wisely. Thankfully, a growing body of research can allow us to do at.
New findings have given us the opportunity — and the mandate — to spend more boldly and intelligently than ever before. Here’s what we should do: Modernize planning tools to consider systems holistically, get out of technology ruts, and, most fundamentally, measure performance.
So, what do we mean by “considering systems holistically,” exactly? Rather than weighing the benefits of a project in isolation, holistic planning weighs how a project would also impact surrounding infrastructure and the wider region.
Consider the Red-Purple Bypass Project in Chicago: A modernization initiative of the Chicago Transit Authority, or CTA, this recently completed project rebuilt a junctionbetween some of the city’s busiest El lines.
At first glance, building a short rail bridge seems like an isolated improvement. Yet, its cascading effects could be substantial.
By simply relieving a bottleneck, it could essentially unlock capacity equivalent to a new line — accommodating eight additional trains and 7,200 more passengers per hour. It will also improve reliability across the rail network, benefiting commuters in distant parts of Chicago. Evidently, thinking in terms of the wider network can make even localized projects hugely transformative.
This same holistic approach can also improve the nation’s ailing road networks.
Research indicates that moving to whole system decision tools provides as much benefit as spending roughly 10 percent more per year. And the tools to do this, referred to as asset management tools, are commercially available. States should adopt and apply such tools to inform all funds allocation questions immediately.
Thankfully, systems perspectives are starting to become standard practice. Leading transportation departments and metropolitan planning organizations (MPOs) are today implementing accessibility-based performance planning — a leading whole systems approach.
This form of planning considers projects based on how many jobs, health care facilities, parks, and other key amenities people can reach in certain times by certain modes of transport. With this kind of systems planning, even targeted improvements can expand access across entire regions.
But systems approaches alone cannot ensure efficient spending: We’ll also need to escape technology ruts.
Research shows that when states eschew tired tools and use a wide variety of materials and construction technologies, they can build a system far more economically. In fact, using a broad mix of paving materials and practices, including investing in long-lasting construction, provides the same benefits as spending 32 percent more per year while also cutting pavement emissions by 21 percent.
Finally, to realize lasting change, we need to measure the performance of the infrastructure we create.
Currently, we rarely measure the quality of our roads — chiefly because data on infrastructure has been hard to gather. And yet, without this data, effective decision-making is impossible. That’s where smart technologies can prove useful.
Various smartphone crowdsourcing tools are already gathering road quality and travel time data across the country at a fraction of the cost of conventional methods. With more investment, these tools could help cash-strapped transportation departments while helping to mitigate traffic jams — which currently cost drivers roughly $1,000 annually.
Over many years, a narrative has emerged in the public imagination: when immense, visionary investments are made — the Hoover Dam, the Interstate Highway Network — cities, regions and nations are transformed as a result.
Yet, transformative infrastructure projects are the product of more than just massive investment: their success also depends on cutting-edge tools and perspectives that maximize those investments.
As we shift from negotiation to implementation, we should embrace a new narrative to guide our infrastructure investments. We need to understand that spending boldly is just the first step: ultimately, we must spend shrewdly as well.
Jinhua Zhao, Ph.D. is director of MIT’s Mobility Initiative and an associate professor of transportation and City Planning.
Anson Stewart, Ph.D., is a research scientist at MIT’s Department of Urban Studies and Planning.
Franz-Josef Ulm, Ph.D., is the faculty director of the MIT Concrete Sustainability Hub. His research interests are in the mechanics and structures of materials. His research investigates the nano- and micromechanics of porous materials, such as concrete, rocks and bones and the durability mechanics of engineering materials and structures.
Randolph Kirchain, Ph.D., is the co-director of the MIT Concrete Sustainability Hub. His research focuses on the environmental and economic implications of materials selection and deals with the development of methods to model the cost of manufacture and the sustainability of current and emerging materials systems.
Research from the MIT Concrete Sustainability Hub is sponsored by the Portland Cement Association and the RMC Research and Education Foundation.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
