How the Interstate Highway System Supercharged US Productivity

The Productivity Podcast with Fexingo: Output, Efficiency, and Long-Term Economic Growth · Jul 30, 2026 · 6m · transcript

In 1956, President Eisenhower signed the Federal-Aid Highway Act, launching the largest public works project in American history. The Interstate Highway System now spans 47,000 miles and has generated $6 in economic benefit for every $1 spent. This episode explores how the interstates cut freight costs by 17 percent, boosted trucking productivity by 30 percent, and enabled the rise of just-in-time manufacturing and national supply chains. We look at the economic research from Fernald on the 1 percent annual productivity growth contribution, and examine the role of highways in reshaping…