The importance of infrastructure investment for U.S. economic growth is widely appreciated. But policy discussions often get sidetracked by a debate regarding the level of federal spending. To spur growth, it is more important to ensure that investment is as efficient as possible and that investment responsibilities are optimally allocated between the federal government, the states, and the private sector.

Cato has released a new study on infrastructure spending. The study discusses how federal involvement in infrastructure has many serious disadvantages, and few, if any, advantages.