- Lack of infrastructure reinvestment could cost the US economy $4 trillion by 2025.
- Given historically low interest rates, now seems like the time for cities and states to rebuild roads and bridges.
- On the flip side, low rates have made it harder for states to generate investment returns necessary to meet long-term pension obligations.
- With cumulative underfunded liabilities over $1 trillion under annual return assumptions of 7-8%, matters will worsen if the US enters another recession (even lower interest rates, declining investments).
