Impact of the Economy on Infrastructure

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Infrastructure is a big victim of economic slowdowns.  Private investment into infrastructure drops considerably when consumption and economic growth slow, and falling tax revenues cause government programs to slow even more because so many of our infrastructure systems are government-funded or heavily dependent on government subsidies.  A number of state and local governments are beginning to experiment with public-private partnerships to place more of this funding need onto the private sector, but – regardless of the highly interesting possibilities of such partnerships – an economic slowdown will negatively impact all of the investments being made in infrastructure.


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