Ryan Avent asks what would happen if for just one year we spent as much on infrastructure investments as we do on the Department of Defense:
With that kind of money you could entirely build out a national network of true high-speed rail. One year’s worth of defense spending gets you that. Which makes one wonder: where are all the economists, wringing their hands over cost-benefit analyses of these defense expenditures? Does anyone doubt that the net benefit of $100 billion spent on high-speed rail is easily higher than that for the last $100 billion spent on defense? Have a look at this if you’re unsure.
And while the gains to new investments in infrastructure (and not just in transportation) would be large, it isn’t as though we lack critical needs. What was the cost, human and economic, of the I-35 bridge collapse? Of the Metro crash and resulting limitations on service? Of the Bay Bridge shutdown? And of course, investments in infrastructure constitute positive contributions to the economy, which ultimately strengthen our ability to direct resources toward defense. Aimless defense spending, on the other hand, may well make us poorer and less secure.
Ryan’s link was to my post comparing America’s 2007 defense spending to other countries:
Under the circumstances, I think it’s clear that the marginal dollar spent on defense has a very low value. And of course though Ryan’s thought-experiment is a fun exercise, you couldn’t build out a national HSR network in one year no much how much money you spent. So the real point would be something like if we took 10 percent of the defense budget and re-allocated that to infrastructure, we could have a national HSR network in ten years. And we’d still be spending over triple what our nearest rival spends.
Something worth noting is that for a hegemonic power suffering from slow-but-steady (but very slow) relative decline, wasting money on national security expenditures actually erodes our hegemony. Meaningful U.S.-Chinese security competition is a generation or two away. By that time, money that was spent in 2009 on fighter planes or nuclear submarines or transportation infrastructure in Afghanistan isn’t going to be doing us any good. By contrast, spending money on preschool in 2009 does improve the U.S.-Chinese balance of power in 2049—investment in early childhood education pays enormous dividends, but it takes a long time to turn tiny babies into productive adults. And transportation is just the same. The construction of heavy rail mass transit in Boston, New York, Chicago, and Washington was extremely expensive but has paid consistent dividends for decades and if properly maintained will continue to do so forever.
I can’t vouch for the authenticity of the quote, but someone told me he heard a Chinese official tell him ‘over the past decade you’ve spent $1 trillion on Iraq and Afghanistan, we’ve spent $1 trillion building the future of China.’ I don’t really think we should view that contrast in a paranoid light, but if you do want to take a paranoid view of the American national security situation it makes a lot more sense to worry about that than to worry that someone in a cave might build a bomb. "
(Via Matthew Yglesias.)
