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Modern homes in the industrialized world are connected to an array of infrastructure networks, grids, and systems. Some of these physical (“hard”) infrastructures are clearly visible, such as transport networks, while others are largely hidden, such as energy, water, and sewer systems. It is not uncommon for scholars to define the term public infrastructure even more expansively so as to include certain public services and social institutions such as schools, police, and fire facilities (so-called soft infrastructure). Over the past century, household connectivity to these diverse and elaborate networks has become nearly universal in advanced capitalist societies. This modern “infrastructural ideal” rested on the shared belief that transport, power, water, waste, and communication networks should deliver essential services to virtually all homes at similar cost. Although the realization of this ideal is an impressive engineering and technological achievement, it is also a deeply political and economic phenomenon—characteristics particularly evident in times of financial crisis and fiscal austerity.

In times of budgetary belt-tightening, local officials are more likely to thoroughly evaluate the fiscal relationship between the private development of housing stock and the public provision of infrastructure. There are two strands of research that can inform our understanding of this relationship. First, we can identify a theoretically informed literature that provides insights into the historically shifting role of public infrastructure and the emergence of the modern networked home. Second, we can identify a body of research that provides a more practical, fiscal assessment of the infrastructural costs of various residential settlement patterns. We will consider each of these dual strands in turn.

The Infrastructural Ideal and the Modern Networked Home

To begin, the modern infrastructural ideal should be understood in the context of Fordism and Keynesianism. Fordism, named for the automobile manufacturer Henry Ford, refers to a system of mass production, distribution, and consumption that is reliant on the centralized provision of infrastructure networks for the reproduction both of capital and labor power. In the United States, Fordist economies of scale were nurtured by the Keynesian state (named for economist John Maynard Keynes), which implemented the redistributions and cross-subsidies that the “ideal” required. Between 1920 and 1960, massive federal investment in infrastructure transformed water, sanitation, transport, gas, and energy grids into the standardized and ubiquitous underpinnings of advanced industrial society. It was also during this era that the comprehensively networked home emerged as a crucial node within Keynesian systems of privatized consumption and social reproduction. As household access to road, water, energy, and communication networks became indispensable, residents became more tightly enmeshed within the capitalist system of dispersed consumption. Through the provision of elaborate physical and social service networks, the Keynesian state thus created the socio-physical preconditions for capital accumulation and social reproduction under conditions of Fordism.

Keynesianism reached its structural limits in the 1970s and was subsequently replaced by a neoliberal mode of governance and a post-Fordist system of production. The rise of neoliberalism signaled, inter alia, an abrupt “rescaling” of infrastructure development, usefully conceptualized as the dual “uploading” (to supranational levels) and “downloading” (to subnational levels) of infrastructural authority. On one hand, the political economy of infrastructure was uploaded through processes of privatization and financialization. Although, at present, some local water systems, transport assets, and power grids are fully owned by transnational corporations, the process of financialization influences all infrastructure sectors. Indeed, even when cities do not directly privatize public works, they often must engage capital markets to finance their efforts, as the development of public works now unfolds largely within the global infrastructure market. This entails private sector regulators, such as bond-rating agencies, which impose a different disciplinary logic than did their public sector predecessors. While localities once received much of their infrastructure funding through intergovernment transfers based on sociodemographic criteria, they are now compelled to keep expenditures low and revenues high in order to maintain positive bond ratings.

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