Recently a video appeared on social media that showed the time lapsed construction of a tunnel underneath an interstate in the Netherlands. Impressively, the tunnel was completely constructed in one weekend, and within days the road sitting atop the tunnel was once again carrying passengers to and from their destinations. This sort of sight is quite foreign to the United States, where “infrastructure week” is considered a year-round affair.

Despite boasting the world’s largest economy and famous for its developments in infrastructure throughout the 19th and 20th centuries, the United States has fallen behind the pack. According to a Statista from 2019, the U.S. ranks behind 12 other nations ranging from the Netherlands, to Singapore, to Spain, to the United Kingdom on the general quality of public infrastructure.

In 2020, the United States was a “C-” rating for its public infrastructure. Among the reasons listed for the lackluster rating included some surprising statistics: around 6 billion gallons of water are lost every day in the nation due to water main breaks, 43% of America’s public roads are “in poor and mediocre condition,” and one in five American children lacked access to “high-speed internet connection.”

The issue of infrastructure has been a pivot point in American politics for decades, but in recent years it has taken center stage. Then-candidate Donald Trump in 2016 to spend $500,000,000,000 on infrastructure investments; President Joe Biden   Congress for nearly $2,000,000,000,000.

Investment

According to OECD (the Organization for Economic Co-operation and Development) , the United States spends a comparable amount of its public funds on government investment in relation to other developed nations. When comparing national government spending as a percentage of GFCF (gross fixed capital formation), the United States is not that far off from other nations with better infrastructure.

Investment by sector with regards to government spending includes research and development, “military weapons systems, transport infrastructure and public buildings such as schools and hospitals.”

Larry Summers, former Vice President of Development Economics and Chief Economist at the World Bank as well as President Obama’s director of the National Economic Council, theorizes that the modern economy is suffering from “secular stagnation.” This phenomena is said to consist of low interest rates, low inflation, slow projected economic growth, and stagnant unemployment. A solution to this problem, , is to “invest more and deploy infrastructure more wisely, procure it more efficiently, and site it more quickly.”

Ed Glaeser, an economist and professor at Harvard University, concurs with Summers that further infrastructure investments should be made. He , however, insofar as Summers views infrastructure investment as a solution to recessionary pressures. Glaeser says that “we should see it as a sensible investment for the future of this country.” Glaesar “keenly believe[s] that there is no area in which it is easier to waste tens of billions of dollars than infrastructure, which makes doing projects for the wrong reasons phenomenally costly.”

Glaeser and Summers agree that infrastructure investment is vital to American prosperity, particularly for lower-income communities that have disproportionately faced the brunt of the Coronavirus-induced recession. But Glaesar urges caution. “A strategy that says we know exactly what to do—write bigger checks—is likely to be the last thing in the world that we need.” For the Harvard economist, there is reason to spend more, but the spending should be targeted and pinpointed so as to get the best returns on taxpayer dollars possible.

Innovation

A large part of the infrastructure investment equation includes the capacity to innovate. America has long been known as a global hub for innovation, in no small part due to the nation’s large immigrant population and booming international university scene. Innovation allows taxpayer dollars, as well as private investors, to get higher returns on investment than they might otherwise generate.

The U.S. Â鶹´«Ă˝Ół»­ Foundation has that “innovation drives economic growth,” and that “America’s genius for innovation and entrepreneurial drive” puts the nation in a prime position for sustained, long-term economic expansion.

The Â鶹´«Ă˝Ół»­ goes further: “In the final analysis, state policies and programs that most effectively promote entrepreneurship, innovation, technology development, and job creation are rooted in market reality. This means building on the existing core industries and technological advantages of a state while having the foresight and wherewithal for pursuing opportunities in growing and emerging sectors.”

Arizona in particular has seen the advantage of such an approach. Under Gov. Doug Ducey, the state capitalized on its low tax, low regulatory-burden atmosphere. The Arizona Commerce Authority, established under Gov. Jan Brewer, as well as a litany of other public and private organizations, . The state now one of the most vibrant jobs markets in the nation, as businesses and people migrate to the state from across the nation and the world.

The growth that Arizona has sustained has grown the public treasury, allowing Gov. Doug Ducey and the state Legislature to expand infrastructure investment even as the COVID-19 pandemic lingers. Recently, the governor $230 million in new infrastructure spending.

Burdens on infrastructure development

While Arizona continues to expand its prospects, infrastructure cannot be solved on the state level alone. A bipartisan consensus exists in Washington to expand infrastructure spending, but some are concerned that simply throwing money at the problem will do little to fix the structural problems present.

Glaeser that the expansion of regulatory burdens, including a large federal bureaucracy that often delays projects for years, contributes mightily to the malaise facing American infrastructure. The emergence of local interests opposing new developments also slows projects. “Large-scale undertakings [need to] painstakingly…avoid inconveniencing anybody, dramatically raising costs and delays,” Glaeser says.

Under the Trump Administration, the president several executive orders rolling back some of the red tape that many economists believe hinders infrastructure development. Under President Trump, the executive branch made a to “expedite the federal permitting process for infrastructure projects, including new mines, highways, pipelines and other projects.” , America ranked 15th out of 33 OECD nations for ease of permitting in 2017.

The Trump era of infrastructure development deregulation was primarily spurred by an impetus to accelerate American economic growth.

Public sector unionization could also pose a potential roadblock to American infrastructure development. In a regarding public sector unions and their ability to “manipulate both supply and demand,” California public sector unions lobbied for policies that expanded the state’s prison population, and thus membership opportunities for the unions representing prison guards.

The California Policy Center has that a similar dynamic occurs between public sector unionization and infrastructure development. Using environmental concerns as the basis for increased spending on infrastructure and expanded regulation thereof, the union causes an over-investment in infrastructure in order to “increas[e] pay and benefits…” They describe this process as self-reinforcing. “As the cost-of-living inevitably rises through artificial constraints on the supply of land and energy, the unionized government workers negotiate even higher pay and benefits to compensate, and the corporate monopolies that control existing supplies of land and energy get more revenue and profit,” according to the Center.

Consensus
While many disagree on the means by which America will commit to further infrastructure development, there is that the government should do more to address the issue. It will be up to policymakers, lawmakers, and powerbrokers to decide whether or not the federal government takes an approach more akin to Summers’ or to Glaeser’s.

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Business leader Howard Stewart said the concept for his Fly Tucson First initiative was buzzing around in his head for years before he had the chance to share his idea to bolster Tucson’s economy.

Stewart has been president and CEO of for almost 20 years and a dedicated member of the Tucson Metro Â鶹´«Ă˝Ół»­ board of directors since 2012.

“From my understanding, every successful city here in the United States has a successful airport,” Stewart said. “Tucson has an airport that is trying to be successful, but it could certainly be a lot more successful if our residents by and large supported it; but many don’t.”

Stewart was on the Public Affairs Council at the Tucson Metro Â鶹´«Ă˝Ół»­ when he first brought his idea to light. In Stewart’s first meeting, Robert Medler, Tucson Â鶹´«Ă˝Ół»­ vice president of state and federal affairs, asked the new councilmembers for their ideas to boost the region’s economy.

“Nobody had ever asked me that question — what do I think would really help this city?” Stewart said. “The idea was that… we community leaders in particular should that we will fly out of Tucson except under certain circumstances.”

Tucson International Airport (TUS), which originally opened in 1919, was the first municipally-owned airport in the U.S. The nonprofit Tucson Airport Authority (TAA) oversees operations at TUS and Ryan Airfield (RYN), a small general aviation airport about 15 miles west of Tucson.

TUS and RYN contribute $7.4 billion in annual economic impact to Southern Arizona and support 43,062 jobs paying $2.3 billion in wages, according to a by Elliot D. Pollack & Company for TAA.

TUS saw more than 3.4 million total passengers arriving and departing in 2017, according to the report. That number was up to 3.6 million in 2018 and is pacing even higher for 2019, said David Hatfield, senior director of air service development and marketing for TAA.

“As the region’s major commercial airport, most people know what a valuable asset Tucson International Airport is when it comes to travel to and from southern Arizona,” said Bonnie Allin, president and CEO of TAA, in a statement. “This study takes it a step further quantifying how tightly interconnected TAA’s airports are as economic engines that benefit us all in many ways.”

Stewart said it is not uncommon for Tucsonans to drive about 220 miles roundtrip and fly out of Phoenix Sky Harbor International Airport (PHX) instead of TUS.

“The last figure I heard is — we lose about a million passengers a year to Sky Harbor,” he said. “You can imagine, if we had a million extra people per year going through Tucson Airport, that there would be a . We’d have a lot more flights… my calculations are about 40 percent more.”

That means increasing the existing 60 flights out of TUS to about 84 flights total, Stewart said.

“Of course, that’s going to require a bigger airport,” he said. “And if nothing else it’s going to require more manpower… more employees, more pilots, more flight attendants, more people servicing the aircraft; and that’s going to create more jobs.”

Currently, TUS does not offer flights to East Coast cities, but that could change, Stewart said. With more flights to and from more places, tourists may be inclined to fly into Tucson more often, he said.

One challenge is that, in order to have more flights, there have to be people interested in taking the trip both ways, he said.

For example, American Airlines offered a direct flight from Tucson to New York City and back, but it did not last; Tucsonans and New Yorkers alike showed limited interest. According to Stewart, Tucsonans do not want to brave East Coast winters, and New Yorkers “don’t particularly” want to visit Arizona during the scorching summer months.

“We have this problem that there’s easily six months a year where we don’t do a very good job of supporting each other’s cities,” Stewart said.

That’s where the pledge comes in. Stewart said he wants business leaders in particular to sign the pledge to fly themselves and their employees out of Tucson whenever possible.

“I’d like every resident to sign it, but a lot of times these are the people who are running companies or large organizations,” he said.

Sun Corridor, an economic development organization representing the metropolitan areas of Southern Arizona, on the business side of things.

“One of the most important pieces of infrastructure for Southern Arizona is the Tucson airport, and while the flying public depends on access to transportation, so do prospective commercial and industrial entities,” said Laura Shaw, senior vice president at Sun Corridor. “Our efforts in that area include a partnership that expands the airport’s assets, really trying to build up more commercial development and help plan for proper land use around the airport for the next five to 10 years.”

The partnership is currently under a three-year contract in which TUS has outsourced its economic development to Sun Corridor. When a company is looking to establish itself or expand near an airport in Southern Arizona, Sun Corridor plays both promoter and broker, pointing a spotlight at the region’s assets.

“The airport has a lot of unique assets here that are really great for business,” Shaw said. “There are probably about 800 to 1,000 developable acres around the airport that the airport’s looking at, and we’re looking at, to help them figure out how to utilize that acreage, how to make them shovel-ready and really ready for business.”

TUS is surrounded by employers, including — one of the state’s largest private-sector employers — as well as Bombardier and Ascent Aviation. There are smaller manufacturers, MROs (maintenance, repair and operations services) and fixed-base operators (FBOs) around the airport. FedEx, HomeGoods, Target and Amazon have large distribution centers near TUS.

“It’s got direct access, sitting right between two major highway systems, I-10 and I-19,” Shaw said. “It’s the only Arizona airport with 24/7 CBP () air cargo handling, so that’s a big benefit as well. And there’s no real property tax for tenants because of how the airport is structured.”

Additionally, the , a full-service inland port, rail yard and intermodal facility, is about a 15 minute drive from TUS.

“The more businesses and individuals… [that] can fly out of Tucson, the more flights we’ll get,” Shaw said. “It’s the same thing with us and economic development — the more companies we can attract, the more talent we can attract, and vice-versa. So, the more people that fly out of Tucson and don’t drive up to Phoenix really helps to build up the flights here, which will in turn help us to attract more businesses that know that they can fly in and out easily.”

Stewart said the Fly Tucson First initiative reminded him of something Ben Franklin supposedly said at the signing of the Declaration of Independence: “We must all hang together, or most assuredly we shall all hang separately.”

“If we don’t do all this collectively — if we don’t all agree to do this — we’re screwing ourselves individually, whether we think we’re helping ourselves or not,” Stewart said.

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