Directing stimulus dollars toward IT infrastructure will have a greater impact on jobs and productivity than investment in traditional infrastructure, the report argues, because of the potential to indirectly create new jobs through the growth of new services and applications that depend on IT.
"With the U.S. economy now mired in a deep, and potentially prolonged, recession, increased investment is one of the best tools to stimulate aggregate demand and quickly get American workers back on payrolls,"
the report says. "Ignoring IT infrastructure investments will do nothing to save U.S. taxpayers' money; instead, it will simply shift the proportion of the economic stimulus money that goes to other areas, some of which, including personal consumption, do not offer many added benefits such as longer-term economic growth or innovation."
ITIF Releases New Report
The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America
As Congress considers a substantial stimulus package to get the economy moving, investing in new economy digital infrastructures will provide significant opportunities not just for short-term stimulus and job creation, but also longer term economic and social benefits. In the report, “The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America,” ITIF provides a detailed analysis and estimate of the short-term jobs impacts of spurring investment in three critical digital networks: broadband networks, the smart grid (making the electric distribution system intelligent) and health IT, and outlines policy steps to spur this investment.
ITIF finds that investments in America’s digital infrastructure will spur significant job creation in the short run. Specifically, ITIF estimates that spurring an additional investment of $30 billion in America’s IT network infrastructure in 2009 will create approximately 949,000 U.S. jobs.