US Vice President Joe Biden’s insistence that there should be greater infrastructure development comes just a few weeks after the International Monetary Fund pressured developed countries to use infrastructure investment as an impetus to spur growth.
“It makes no sense at all” that the US spends less than 1 percent of its gross domestic product (GDP) on infrastructure, Biden said at the 6th North American Leadership Forum held by CGLA Infrastructure.
The US ranks only 27th globally in terms of infrastructure spending, Biden said during the speech.
Infrastructure is “about jobs” and it is pretty straightforward that it is “in the interests of the hemisphere,” he added.
Biden said that the US should take advantage of the recent energy reforms launched by the Mexican government to build infrastructure that will facilitate trade between the two countries and across North America.
Mexico's ground-breaking energy reforms aim to effectively end a 100-year state monopoly of its oil and gas sector and bring in the private sector to ramp up oil and gas production.
Biden gave examples of successful infrastructure projects carried out previously in the US.
“We built the transcontinental railroad… The first federal road was built from Washington to Ohio. [We] built a thing called the Erie Canal.”
It would be “absolutely brain dead” not to be spending on infrastructure that improves lives in the US, he said.