What is the most important reason for the creation of the interstate highway system?

One of the principal reasons for building the interstate highway system was to support national defense. When the system was approved --- during one of the most instable periods of the Cold War, national security dictated development of an efficient national highway system that could move large numbers of military personnel and huge quantities of military equipment and supplies. The interstate highway system effectively performs that function, but perhaps more importantly, its availability provides the nation with a potential resource that could have been reliably called upon if greater military conflict had arisen. Throughout the Cold War (and even to today), America's strategic advantage in effective surface transportation was unchallenged. Even today, no constituent nation of the late Soviet Union has begun to develop such a comprehensive surface transportation system.

In the post-communist world, it may be tempting to underestimate the role of the interstate highway system in national defense. But the interstate highway system continues to play a critical role. The U.S. military's Strategic Highway Corridor Network (STAHNET) relies primarily on the interstate highway network, which represents 75 percent of network mileage. The U.S. Army cited the that system as being critical to the success of the 1990-1991 "Desert Shield-Desert Storm operation (the U.S. led operation to free Kuwait from Iraq):

The Army also noted the "modal redundancy" of the highway system, which provided rapid and effective movements of a military division when difficulties with a rail line precluded the planned transport by rail.

Over the last 40 years, the Dwight D. Eisenhower Interstate System of Interstate and Defense Highways has served the nation well.

The 40-year benefits quantified above are estimated at between $2.1 trillion and $2.5 trillion (1996$) --- between 6 and 7.5 times the gross original investment in the interstate highway system. Benefits in 1996 alone are estimated at from $78 billion to $110 billion --- more than the gross state product of Oregon.

Quantified 40 Year Benefits of the Interstate Highway System: 1995$
Benefits	1996 (Billions)	1957-1996 (Trillions)
Lower Product Prices	$14	$1.0
User Benefits (Time Savings & Operating Costs)	$47-$79	$0.7-$1.1
Reduced Fatalities, Injuries and Accidents	$17	$0.4
Total Quantified Benefits	$78-$110	$2.1-$2.5

But the quantified benefits fall short of the actual benefits that have been produced by the interstate highway system, such as:

Each of these benefits do not lend themselves easily to economic analysis, but their impact has clearly been profound. The interstate highway system has improved and enriched the quality of life of Americans.

THE FUTURE OF THE INTERSTATES

While the economic and social benefits of the first 40 years of the interstate highway system are clear, the gargantuan load of automobiles, light trucks, buses, and commercial vehicles has taken a toll on the interstates.

Condition of the Interstates: Despite the important role played by the interstates in the nation's economy and quality of life, the system requires renewed investment. Many portions of the interstate highway system are strained to capacity, increasing delays and air pollution and dampening economic activity. This is not surprising. The interstate highways were built to accommodate 20 years of traffic growth. By 1985, half of the system had reached its design life, and, by 1995, 90 percent of the system was 20 years or older. The original interstate highway system, authorized when the nation's population was less than 170 million, is not much more extensive today when the nation's population approaches 270 million. Including non-interstate super-highways, expressways and toll roads now total 55,000 miles, 30 percent more than the interstate highway system as conceived in the late 1950s, but the nation's population has increased by 70 percent over the same period.

From 1982 to 1992, urban traffic congestion increased by more than 15 percent.

NOTE: Urban Roadway Congestion-1982 to 1992.

The percentage of urban interstate lane miles operating at above 80 percent of capacity at peak hour has nearly doubled since 1975.

NOTE: 1994 Highway Statistics.

And, rural interstate congestion, though minimal compared to that of urban areas, continues to grow.

At the same time, the physical structure of the system is in need of attention.

Approximately 60 percent of interstate pavements are rated from fair to poor.

NOTE: Clifford M. Comeau, "Condition and Performance of the Interstate System - After 40 Years," Public Roads (Washington, United States Department of Transportation, Federal Highway Administration, Summer 1996).

Six percent of interstate bridges are structurally deficient.

NOTE: Calculated from 1995 Status of the Nation's Surface Transportation System: Conditions and Performance (Washington, DC: United States Department of Transportation, 1995),

Structural deficiency can result in catastrophic bridge failure and loss of life (within the past 15 years, there have been two well publicized bridge collapses claiming 13 lives.

NOTE: Mianus River Bridge on I-95 in Connecticut (1983) and Schoharie Creek Bridge on I-95 in New York (1987).).

The Imperative for Interstate Investment: Expensive as they might appear, improvements are necessary. According to reports prepared for the Federal Highway Administration, the pace of super-highway lane construction in urban areas over one million would have to be increased substantially to stop the growth of traffic congestion. Yet, the annual cost of such would be only $3 billion --- a fraction of the peak annual construction costs incurred during the 1960s and 1970s, and a 2.5 percent increase in the nation's annual surface transportation budget.

NOTE: Lane mile data from Texas Transportation Institute, 1995. Per lane mile cost calculated from data in 1995 Status of the Nation's Surface Transportation System: Conditions and Performance adjusted to reflect 1996 prices.

NOTE: 1994 surface transportation expenditures were approximately $120 billion (1996$), $95 billion for highways and $25 billion for transit.

The safety impacts alone would justify such expenditures. Each new ten mile segment of urban interstate could be expected to save, on average, two lives and 250 injuries annually. Over a ten year period, this urban interstate improvement rate could save 1,950 lives and avert 240,000 injuries.

NOTE: Based upon improved lower fatality and injury rate of the interstate highway system relative to the balance of the federal aid primary system. Average urban interstate assumed to be six lanes. 10 year projection assumes that 1,104 lane miles of urban interstates would be built per year over the period.

The economic impacts of improved safety would exceed the cost of the new roadway in less than 15 years.

NOTE: Conversion from lane miles to roadway assumes an average of six traffic lanes. Lives and injuries avoided based upon comparison of rates between interstates and the federal aid-primary system. Construction costs based on data in 1995 Status of the Nation's Surface Transportation System: Conditions and Performance converted to 1996$.

Each new 10 mile segment of rural interstate could be expected to save one life and 40 injuries per year.

The increase in traffic congestion takes an additional economic toll in terms of excess fuel consumption and the costs of delay. In 1992, these urban "congestion costs" were $34 billion and were increasing at an annual rate of approximately $2.1 billion.

--- nearly two thirds of the annual cost of required capacity expansion ($3.0 billion, above). Urban super-highway (largely interstate) congestion increases motor vehicle related pollution by consuming more than 14 billion excess gallons of fuel annually --- 58 gallons of fuel per household. This is enough fuel to transport the average household 1,250 miles by automobile (equal to trips from New York to Minneapolis, Seattle to San Diego, Milwaukee to Orlando or Denver to New Orleans).

NOTE: In 1996 dollars. Super-highway congestion costs estimated using relationship of freeway delay hours to total system delay hours. Calculated using data for 50 large urban areas in Urban Roadway Congestion - 1982 to 1992.

A report on 1989 conditions indicated that free traffic flow could be achieved through super-highway (largely interstate) expansions in even the most congested urban areas.

NOTE: 1989 Roadway Congestion Estimate and Trends (College Station, Texas: Texas Transportation Institute, July 1992).

By far the highest cost --- $8 billion --- would be required in Los Angeles --- considerably less than that urban area is spending to build urban rail systems that are unlikely to significantly improve traffic flow.

NOTE: In 1996$, based upon costs calculated from 1995 Status of the Nation's Surface Transportation System: Conditions and Performance.

$1 billion would be required in Washington, D.C. Again, while this is a considerable figure, it represents a relatively small investment compared to other non-highway transportation investments that have failed to reduce the area's traffic congestion.

There has been considerable opposition to expansion of urban interstates, much of it based upon the presumption that expanded interstate capacity is quickly consumed by new traffic. Yet, traffic congestion has declined in two of the nation's fastest growing urban areas (between 1982 and 1992).

NOTE: Urban Roadway Congestion - 1982 to 1992.

In Phoenix, traffic congestion declined by six percent from 1982 to 1992, while population increased by 40 percent (1980-1990).

In Houston, traffic congestion declined by four percent from 1982 to 1992, while population increased by 20 percent (1980-1990).

A major component of the improved traffic conditions in these two urban areas has been a substantial program to build and expand super-highways. By contrast, the average large urban area experienced a 20 percent increase in traffic congestion, while population increased by approximately 10 percent.

Nationally, improvement of interstate highways and other super-highways to support anticipated rates of economic growth would require an annual increase in capital expenditures of approximately $3.5 to $4.5 billion --- $24 billion from 1997 through 2002.

NOTE: Calculated from data for the "Economic Efficiency" scenario in 1995 Status of the Nation's Surface Transportation System: Conditions and Performance.

Recent analysis by the Congressional Budget Office indicated that federal highway expenditures could be increased by nearly $28 billion from 1997 through 2002 --- more than enough to pay for the required investment, through use of existing and anticipated Highway Trust Fund resources.

NOTE: Calculated from data in Statement of Robert A. Sunshine, Deputy Assistant Director for Budget Analysis, Congressional Budget Office, on The Highway Trust Fund, before the Subcommittee on Surface Transportation, Committee on Transportation and Infrastructure, United States House of Representatives, May 16, 1996.

Further, even after 2002, highway user fees will continue to produce more revenue than is spent on building, maintaining, and patrolling the nation's highways --- considerably more than would be required to fund the investments required to preserve the positive economic contribution of the interstate highway system to the national economy.

The economic imperative: The nation's continued economic growth depends, in part, on an interstate highway system that grows along with the nation. Population growth will continue. All demographic trends indicate overwhelmingly that people will continue to pursue the "American Dream" of the house in the suburbs and a high degree of personal mobility. But the challenges to U.S. economic growth are substantial. International competitors are becoming stronger, while total compensation per U.S. employee is increasing at lower rates that before. If traffic congestion is permitted to worsen, then American consumers will pay a heavy toll, in higher prices due to higher shipping costs, jobs lost due to foreign competition, reduced employment opportunities, and less leisure time.

America's Future Depends on the Interstates

It has been a momentous 40 years. Interstate highways have contributed to the economic growth and quality of life in America. Indeed, the interstate highway system has been a major factor in making the United States the homogeneous nation that it has become.

The interstate highway system, and other super-highways, will continue to make a positive contribution to the nation's economy and quality of life. This requires that investments be made to preserve and expand the mobility that has helped to make Americans the world's most prosperous people, America the world's premier economic power, and provided an international model for expanding freedom of mobility for virtually everyone. In important dimensions, the future of the nation depends upon the interstate highway system.

The American Highway Users Alliance

The American Highway Users Alliance traces its roots to 1932, when it was chartered by General Motors President Alfred Sloan to "get the farmers out of the mud." The Highway Users (knows as the Highway Users Federation from 1970 to 1995) serves the long-term interests of business and industry in transportation. Many industries are dependent on highways to be successful, including automotive, travel and shipping. Almost 80 percent of all U.S. Expenditures for passenger and freight transportation --- $800 billion annually --- are highway related. Highway passengers spend over $350 billion per year on their travel --- about 12 percent of the nation's GDP. And freight movement over highways counts for 80 percent of all shipping.

The Highway Users works for better, safer highway transportation through public policy analysis, public information and education, and legislative and regulatory advocacy. It believes that good highways are essential to a strong economy and the costs of improving highway transportation should be borne by the users.

Led by President William D. Fay, the Highway Users has over 500 individual and 100 corporate/association members and affiliates in 18 states.

The Authors

Wendell Cox and Jean Love are public policy consultants with the Wendell Cox Consultancy.

Both have worked on projects in the United States, Canada, Australia, Africa, Europe, and New Zealand. They have recently established an Internet public policy journal, The Public Purpose.

Mr. Cox was appointed to three terms (1977-85) on the Los Angeles County Transportation Commission by Mayor Tom Bradley and has chaired national committees on energy conservation and urban transit planning. He also serves on the steering committee of the bi-ennial International Conference on Competition and Ownership in Surface Passenger Transport. He holds an MBA from Pepperdine University in Los Angeles.

Ms. Love has performed research in a variety of fields, and edited three editions of a comprehensive public policy manual (Legislative Issue Briefs). She organized the Third International Conference on Competition and Ownership in Surface Passenger Transport, held in Toronto in 1993. She earned a Masters degree from Southern Illinois University in Edwardsville.

They are co-authors of many books and papers, including Moving America Competitively, The Livable American City and People, Markets, and Government: A State Legislator's Guide to Economics. Their practice is based in the St. Louis area.

APPENDICES

Table A-1 Urban Travel Market Share (Person Miles): 1994: Largest Urban Areas
Urban Area	Interstate	Other Highway	Non-Highway (Primarily Rail)	Interstate Times Non-Highway
Atlanta	26.5%	72.8%	0.7%	39
Boston	22.8%	74.2%	3.0%	8
Buffalo	17.0%	82.8%	0.2%	98
Chicago-Northwestern Indiana	20.9%	76.6%	2.5%	8
Cincinnati	30.2%	69.8%	0.0%	**
Cleveland	27.6%	72.1%	0.3%	84
Columbus	27.6%	72.4%	0.0%	**
Denver	19.9%	80.1%	0.0%	1,659
Detroit	21.2%	78.8%	0.0%	**
Dallas-Ft. Worth	20.7%	79.3%	0.0%	**
Houston	19.7%	80.3%	0.0%	**
Kansas City	24.9%	75.1%	0.0%	**
Los Angeles	21.5%	78.4%	0.1%	172
Miami-Fort Lauderdale	14.3%	85.1%	0.6%	25
Milwaukee	17.4%	82.6%	0.0%	**
Minneapolis-St. Paul	24.1%	75.9%	0.0%	**
New Orleans	22.8%	77.1%	0.2%	133
Norfolk-Va. Beach-Newport News	18.7%	81.3%	0.0%	**
New York-Northeastern New Jersey	13.6%	78.7%	7.7%	2
Pittsburgh	16.4%	83.4%	0.2%	93
Philadelphia	15.3%	82.6%	2.1%	7
Phoenix	12.4%	87.6%	0.0%	**
Portland	23.0%	76.7%	0.3%	85
Sacramento	16.9%	82.9%	0.2%	77
San Antonio	25.0%	75.0%	0.0%	**
San Diego	27.7%	72.1%	0.2%	135
Seattle	25.2%	74.8%	0.0%	**
San Francisco-San Jose	21.6%	76.8%	1.6%	14
St. Louis	27.3%	72.5%	0.1%	235
Tampa-St. Petersburg	14.7%	85.3%	0.0%	**
Washington-Baltimore	23.5%	74.7%	1.7%	14
**Non-highway person miles zero or negligible.

Alabama

Table A-2 Estimate of Reduced Fatalities Attributable to Use of the Interstate Highway System: By State
State	1994	40 Years	Fatalities Avoided per 1,000 Population*
135	4,400	1.19
Alaska	0	0	---
Arizona	170	4,200	1.70
Arkansas	60	1,900	0.90
California	695	19,500	0.85
Colorado	170	4,700	1.79
Connecticut	70	2,300	0.77
Delaware	5	100	0.17
District of Columbia	10	300	0.44
Florida	320	8,100	0.91
Georgia	175	5,000	0.95
Hawaii	10	300	0.37
Idaho	50	1,500	1.75
Illinois	290	10,300	0.93
Indiana	130	4,500	0.85
Iowa	70	2,400	0.85
Kansas	55	1,800	0.77
Kentucky	90	3,000	0.87
Louisiana	110	3,800	0.98
Maine	20	600	0.55
Maryland	110	3,400	0.83
Massachusetts	70	2,600	0.46
Michigan	120	4,200	0.47
Minnesota	80	2,500	0.63
Mississippi	105	3,500	1.46
Missouri	190	6,400	1.33
Montana	50	1,700	2.27
Nebraska	30	1,100	0.72
Nevada	80	1,600	2.13
New Hampshire	20	500	0.58
New Jersey	90	2,900	0.41
New Mexico	140	3,900	3.17
New York	170	6,100	0.34
North Carolina	140	4,300	0.76
North Dakota	10	300	0.47
Ohio	180	6,300	0.60
Oklahoma	130	4,200	1.50
Oregon	60	1,800	0.75
Pennsylvania	145	5,200	0.44
Rhode Island	20	600	0.64
South Carolina	110	3,300	1.12
South Dakota	20	600	0.87
Tennessee	180	5,600	1.30
Texas	670	18,900	1.41
Utah	100	2,800	2.10
Vermont	10	300	0.62
Virginia	200	5,900	1.14
Washington	90	2,400	0.61
West Virginia	50	1,800	0.98
Wisconsin	60	1,900	0.42
Wyoming	60	1,900	4.72
United States	6,100	187,400	0.86
*Population is weighted 40 year average Note: Alaska has no designated interstate standard highways.

Table A-4
Estimate of Reduced Economic Loss Attributable to
Use of the Interstate Highway System: 1994
By State

In Millions of 1996$ Economic Quality of Life Alabama $260 $830 Alaska $0 $0 Arizona $300 $950 Arkansas $110 $340 California $1,870 $6,170 Colorado $410 $1,350 Connecticut $270 $900 Delaware $20 $70 District of Columbia $20 $80 Florida $820 $2,700 Georgia $670 $2,250 Hawaii $50 $170 Idaho $110 $370 Illinois $820 $2,730 Indiana $280 $900 Iowa $120 $370 Kansas $140 $460 Kentucky $230 $760 Louisiana $260 $860 Maine $60 $210 Maryland $370 $1,250 Massachusetts $200 $660 Michigan $460 $1,550 Minnesota $220 $730 Mississippi $160 $490 Missouri $540 $1,800 Montana $90 $300 Nebraska $90 $310 Nevada $180 $580 New Hampshire $40 $120 New Jersey $330 $1,100 New Mexico $250 $810 New York $660 $2,220 North Carolina $360 $1,200 North Dakota $20 $70 Ohio $790 $2,690 Oklahoma $280 $890 Oregon $140 $460 Pennsylvania $450 $1,500 Rhode Island $50 $180 South Carolina $220 $710 South Dakota $50 $160 Tennessee $410 $1,340 Texas $2,380 $7,990 Utah $240 $770 Vermont $20 $60 Virginia $510 $1,670 Washington $470 $1,600 West Virginia $120 $390 Wisconsin $190 $650 Wyoming $100 $330 Based on National Safety Council Accident Costs

Note: Alaska has no designated interstate standard highways

Table A-5 Estimate of Reduced Economic Loss Attributable to Use of the Interstate Highway System: 1957-1996 By State In Billions of 1996$
State	Economic	Per Capita*

Why is the interstate system important?

What is the most important feature of the interstate system?