Title: Infrastructure Investment | Downsizing the Federal Government
Headings: Infrastructure Investment
Infrastructure Investment
Federal Infrastructure in Perspective
Problems with Federal Infrastructure Spending
Global Trend toward Privatization
Privatizing Federal Infrastructure
Removing Barriers to State and Local Privatization
Conclusions

Content: Thus, highway aid does not favor the fastest-growing states that need it the most. Airport aid favors smaller airports, not the largest airports that have the most passengers. And Amtrak investment is spread around to low-population areas where passenger rail makes little economic sense. Every lawmaker wants an Amtrak route in their state, so investment gets directed away from where it is really needed, such as the Northeast corridor. Infrastructure is Utilized Inefficiently. Government infrastructure is often utilized inefficiently because supply and demand are not balanced by market prices. The vast water infrastructure operated by the Bureau of Reclamation, for example, underprices irrigation water in the western states. The result is wasted resources, harm to the environment, and a looming water crisis in many areas in the West. 8
Investment is Mismanaged. Federal agencies have little incentive to ensure that infrastructure projects are constructed and operated efficiently.