One of the promises President Donald Trump ran on during the campaign was that he would fix "America's crumbling infrastructure," transforming it into "a golden opportunity for accelerated economic growth." Trump wants to pursue a policy that will see investments in transportation, clean water, a modernized electricity grid and other "pressing" infrastructure needs.
"Our infrastructure is badly in need of being updated, modernized, repaired and expanded," FedEx (FDX) CEO Fred Smith told Bloomberg's David Gura on Wednesday's "Bloomberg Markets." Smith had been at hearing on Capitol Hill Wednesday testifying about the need for investment in infrastructure.
Gura asked Smith if he thinks there is an issue with our definition of infrastructure and if there needs to be a more expanded explanation of what that is.
"Well I think to some degree that's been one of the problems," Smith responded. "Everybody wants to define the infrastructure to fit what they'd like to do locally...In our mind the infrastructure that's most important is that that supports the common good and the economy of the United States."
To Smith that is made up of highways, waterways, airports and the air traffic control system. The common theme there is that they are all used for commercial interests. Smith believes they should be funded by taxes or user fees from the people that use the system.
Gura pointed out that following the financial crisis there was a stimulus package and asked Smith what would be different this time around.
"Well first of all the stimulus package under the Obama administration wasn't directed in the main towards projects like I just listed," Smith responded. "It was defused into all kinds of different places. Many of them worthy, no doubt about it...Our issue in the United States transportation and infrastructure arena is our roadways are deteriorating because we haven't increased the federal gasoline and diesel tax since 1994."