Infrastructure Investment: Some Concrete Numbers

Sam Palmisano’s article in the WSJ says:

“Smarter infrastructure is by far our best path to creating new jobs and stimulating growth. We at IBM were asked to map this out by President-elect Barack Obama’s transition team, and our research shows that a $30 billion stimulus investment in just three areas — smart grids, health-care IT and broadband — could yield almost one million new jobs within one year. That’s possible because these kinds of infrastructure have significantly greater economic and societal multiplier effects than traditional infrastructure like bridges and highways.”

I missed this piece, until Rich Karlgaard at Forbes told me about it today. Worthwhile reading.

The breakdown:

* A $10 billion per year smart grid stimulus investment could yield almost a quarter of a million jobs digitizing the grid and in related industries, such as alternative energy and automotive.

* Health-care research would become more informed and intelligent, and health-care providers could develop more advanced, individualized treatments with targeted pharmaceutical drug therapies. A $10 billion stimulus investment could generate more than 200,000 direct and indirect jobs. In addition, it could prove a major impetus for streamlining health-care costs.