The High Cost of Congestion

Transportation expert Alan Pisarski used to say the only solution for the U.S.’s traffic problems would be a 10% unemployment rate. Not quite. Downturns do ease slowdowns, but there’s a slight curve to the relationship. A recent study from the Texas Transportation Institute found that Americans still spend an extra 34 hours a year in their cars because of traffic. The reason: although fewer people are working, more Americans are taking jobs farther from their homes. The TTI expects tie-ups to climb as the economy improves. Coincidentally, President Obama recently proposed spending $50 billion to upgrade our infrastructure, which might ease some of that congestion. Many Republicans say we can’t afford it. But the TTI estimates that congestion already costs us $101 billion a year, or $713 per urban commuter, in extra fuel and wasted time. That’s about what we spend each year to service our overused cars.

AVERAGE TIME SPENT SITTING IN TRAFFIC PER YEAR–AND WHAT THAT COSTS US

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Seattle 44 hours $942

Portland 37 hours $744

Boise 19 hours $345

Salt Lake City 27 hours $512

San Francisco 50 hours $1,019

San Jose 37 hours $721

Las Vegas 28 hours $532

Los Angeles 64 hours $1,334

San Diego 38 hours $794

Phoenix 35 hours $821

Albuquerque 25 hours $525

Denver 49 hours $993

Minneapolis 45 hours $916

Omaha 21 hours $389

Wichita 20 hours $379

Dallas 45 hours $924

Houston 57 hours $1,171

Milwaukee 27 hours $541

Chicago 71 hours $1,568

St. Louis 30 hours $642

Memphis 23 hours $722

Nashville 35 hours $722

Atlanta 43 hours $924

New Orleans 35 hours $746

Boston 47 hours $980

Detroit 33 hours $687

Cleveland 20 hours $383

Philadelphia 42 hours $864

New York City 54 hours $1,126

Washington 74 hours $1,495

Miami 38 hours $785

CHANGE SINCE 2005

MORE CONGESTED

THE SAME

LESS CONGESTED

Source: Texas Transportation Institute; congestion costs based on value of time lost in delays and excess fuel consumption

STOCKS

Presidential Market Bust

The third year’s a bear for Obama

The Dow has risen in the third year of every presidential term since Franklin Roosevelt’s first. But a weak economy, gridlock in Washington and troubles in Europe could end this historical market trend. Presidents typically prime the economic pump before election years. But after a steady diet of stimulus programs, Congress has so far resisted Obama’s new jobs bill.

Average stock-market return in each year of the presidential cycle since 1833

How the Dow has done under Obama

OBAMA VS. THE MARKET

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FIRST YEAR

2.0%

18.8 %

SECOND YEAR

4.2%

11.0%

THIRD YEAR

10.5%

-6.5%*

FOURTH YEAR

5.8%

?

*YTD AS OF OCT. 4, 2011

Source: Stock Trader’s Almanac