Unformatted text preview: cs, Inc. “Economic Impact of Public Transportation Investment,”
In addition to the cost savings described above, a shift from auto to public transportation would
facilitate increased productivity and competitiveness within cities (as discussed in Section 4.3).
This benefit stems from two factors: (1) reduction in wage premiums paid to attract workers to
more-congested areas with higher travel times and costs, and (2) enhancement of access to
labor and customer markets, which bring scale and “agglomeration” economies .
[____] Mass transit investment provides thousands of jobs and boosts urban economies
APTA 2012, (American Public Transportation Association, March “Economic Recovery: Promoting
Growth”, http://www.apta.com/resources/reportsandpublications/Documents/Economic -RecoveryAPTA-White-Paper.pdf)]
Throughout the country, public transportation systems provide jobs with good wages that stay
in local communities. When those employees make purchases, they help boost their local
economies, providing benefits beyond the value of their wages—they buy goods and services
that fund more jobs. Noted economists have calculated that for every $1 billion invested in
public transportation, more than 36,000 jobs are supported. Investment in public transportation
also flows to private-sector transit industry manufacturers and their suppliers. These firms employ
many people, which further multiplies the effects of public tran sportation dollars when these
individuals spend their wages in their communities. Approximately 74 percent of government
funding for public transportation goes toward supporting hundreds of thousands of private
sector jobs. It is estimated that every $1billion of public transportation capital investment
creates 24,000 jobs. Every$1 billion spent on public transportation operations supports or
creates more than 41,000 jobs. In 2010, the industry spent $37.2 billion on operating costs and
$17.9 billion on capital costs, which created and supported nearly 2million jobs.1Estimates of the
number of jobs created by public transportation include three levels supported by public
transportation spending. The highest level is jobs created directly at public transit systems or by
operators and manufacturers of transit equipment, followed by indirect jobs supported by the
purchase of products and services by public transportation businesses. The third level takes
in other indirect jobs created when public transportation workers spend their earnings in the
greater economy. In this way, dollars from public transportation spending effectively travel to
many different industries across the country. 28 | P a g e Mass Transit Affirmative BDL Answers to: Road Focus Good for Economy [____] Investment in mass transit provides the most jobs per dollar spent.
Phillips 2009 -transportation policy expert for the Environmental Defense Fund (“A stimulating
investment - mass transit”, San Francisco Chronicle, November 22, 2009 http://www.sfgate.com/cgibin/article.cgi?f...
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This document was uploaded on 02/06/2014.
- Spring '14