27 May

Failure to maintain infrastructure costs more in the long run

Penny wise, pound foolish:

“Now, instead of the $7 million in renovations and upgrades, the cost to replace the collapsed bridge will run $15 million and take up to a year. The collapse will cost an estimated $47 million in reduced productivity and trade. With the current average tax revenue from this total for trade and productivity in dealing with trade to Canada to be around 22%, the result is that this bridge collapse will cost the federal government $10 million in revenue for the period of repair, which when added to the $15 million pricetag means that we are looking at a total impact of $25 million. All in order to save $7 million.”

(Via So Much For Fiscal Hawks – Republicans Now Costing You Tens Of Millions To Save A Few Million | Addicting Info.)