Time – Thursday, Oct. 18, 2007:
For states and cities looking to upgrade or replace aging infrastructure, partnering with private players is the biggest idea to come along since the interstate highway system started ribboning the country with asphalt in the 1950s. The appeal: governments can stop worrying about roads, bridges and tunnels, and companies get lucrative leases that allow them to collect money from drivers for generations. The craze is being driven by investors who crave the steady cash flow of decades’ worth of tolls
So what’s not to love? The most common gripe is populist. Tolls often skyrocket under private owners, though with the blessing of elected officials, who avoid the political costs of raising tolls or taxes themselves. That’s how privatized roads deliver double-digit returns for investors and often lead to upgrades like electronic tolling. But there are other devils lurking in the details, like noncompete clauses that may prevent transportation agencies from building new roads, or the inability to use roads for economic development by, say, adding a new exit to attract businesses. Some officials get queasy about locking themselves into long leases; Colorado officials already regret offering a 99-year lease for the Northwest Parkway. Others are turned off by the hard sell from investment bankers who advise states on some deals and bid on others. “This should be the last option,” says Texas state senator John Carona, “not the first.”
This really isn’t an issue of letting the free market work it out. Under a true free market it’d be nearly impossible for the private sector to buy the sufficient property under actual market prices to build roads, as property owners along the proposed roads would hold out for the very top dollar. Only the government, through its use of eminent domain, can force land owners to sell, not for whatever the market will bear, but for a government dictated “fair price.”
Once the government gives select corporations greater property rights than citizens and the right of eminent domain, the market is no longer free. It’s fascism.
Corporately owned roads would not be a good idea. Toll roads have their place, although I think they should be mostly concentrated in cities.
I guess it could work if you got a tax break for tolls paid on corporqate roads. And I don’t mean a reduction in taxable income type scam: I mean a dollar of the tax owed for every dollar spent. Full refund. It would makse sense – if the gov’t doesn’t have to pay for that infrastructure, they don’t need that money.
You would still need some way to encourage competition though. Maybe side by side freeways owned by different companies.
What a great idea. We would have to start thinking before getting in the car. What if that next trip to the movies costs you an extra $5? Or a Sunday drive through the mountains costs you $50? You might think twice about going. Maybe living an hour from work isn’t in your best interests after all. Maybe living where you work and play is more important. This is the solution to reliance on foreign oil. Think of the sprawl and pollution this would eliminate.
#2 – I think you’re being very unrealistic. The wealthy will drive where and when they want no matter the tolls or the price of gas.. The rest of us who don’t have 72″ HD plasma TVs might like to take the kids out to the mountains occasionally to get them out from in front of the tube. Why place a greater burden on us? You say this eliminate “sprawl”. So having more stores and businesses out farther from the city, nearer where we live, won’t cause more sprawl? That arguement is just illogical. Also in most cities an hour commute IS near where they work and play. My son’s school is 4.5 miles from home; average commute, 45 minutes.
Yea, so, our “government” is a fraud in so many ways.
Selling off “the peoples property” has already started (the military/blackwater, electrical power/leasing ala Enron, government helplines/offshored to India) and will only continue.
I look for water to be sold off soon. Prices to start at a very affordable 10 cents a gallon.
Sante!
In my last Poly Sci class (years ago), the interstate system was the definition used for the free rider problem. This dictates that even in a staunch capitalist society there are things best served by the government because there is no good market for it. The example used was interstates. It would be cost prohibitive for a company to build it’s own set of roads because there is no way to really clear a profit. There is no room for competition because, for the most part, a road is a road. Price will fully dictate sales.
The Free Rider problem with it is how do you lock people into paying for your road? There are too many ways to get around, so you cannot force people to use your interstate. Much like the Florida Turnpike, you can take it (as I do annually), or you can choose to not take it. This creates a problem recouping the significant cost of building this road.
I’m a big fan of free market, but some things are better left to the government or monopolies. Roads and armies for the government, electricity for monopolies (don’t get me started on natural monopolies and cost analysis curves).
Take a look at what Gov. Perry is trying to do to Texas. He is actively pushing to change ALREADY BUILT roads into toll roads in Texas. Add to that the contract with Spanish Co. Centra to manage and build large portions of new toll roads and I69, the TCC (part of nafta highway), and you have the largest government land grab in history. Many many texas farmers and landowners will loose their jobs for this 1/4 mile wide ‘super highway’ that is basically closed to local residents.
http://tinyurl.com/2mmfjy
Facsim Indeed.
[Duplicate post. – ed.]
Wish we had an edit…
http://www.corridorwatch.org/ttc/index.htm
This is a stunning read. All unfolding here in Texas. Hopefully the elections will put a stop to this.
There are a lot of problems with how roads are funded, IMO. Here in VA, we get to pay the often maligned personal property tax, which like all great taxation schemes is based on the value of the vehicle instead of something more appropriate like a potential for causing wear and tear Also, states should be taxing a lot more than they do, with the federal government taxing a lot less. It’s completely backwards that most functions are performed by the states, yet most of your taxes go to the federal government.
#5, Yes, Adam Smith wrote about that over 200 years as the exception where government involvement is preferred to private enterprise.
A corporation could use GPS to calculate the mileage. But of course, legislators will have to write laws requiring the mandatory use of GPS in vehicles. Corporations would charge a rate per mile.
As long as we have Republicans in office, this will become a reality.
VOTE DEMOCRAT.
#5, Calin;
Actually, the success of public power would indicate the government should be in charge of utility service.
I hear all the argument against this but I gota say The toll roads I have been on have been better built and maintained then the reguler roads. For decades the only decent road through western KY was a toll road.
I can’t pretend to care too much about this when corporations own the right to determine my health care options.
This is only alarming to American liberals.
Privately owned roads exist all over the world – France, for example.
Also, it’s funny how they use “We The People” as a synonym for government.
#16 – Frank you may wish to review your High School Civics. “We the People ARE the Government”. Not “We the mega corp”.
The real problem is neo-conservatives think that the Government can’t do anything well and then they prove when in power by screwing everything up! Not to mention letting loose the pedophiles!
Lets face it – penultimate capitalism IS slavery in a death camp. The company buys or just takes a bunch of people – holds their kids and love ones in a death camp and then says to the rest – work your ass off till you die or else little Frannie gets one in the head. “Yeas Massa Enron, don kills my chilins!”
I’m not the least bit surprised that you end your post with a racist stereotype, STA.
I think Google should buy some roads and pay for it with endless bill boards.
Our government ALREADY gets Lots of money from taxes, to keep the state and federal roads and bridges Updated and improved.
The question should Be, WHERE IS IT?
#13 – For decades the only decent road through western KY was a toll road.
But KY contends with some pretty bad weather that wreaks havoc on a road system primarily relegated to rural areas. It is no surprise the roads aren’t state of the art.
Toll roads are a tax on people who are too stupid to use GoogleMaps.
#15 – This is only alarming to American liberals.
Because they are usually the ones paying attention.
#2 – Sprawl is a GOOD thing, not a bad thing. Sprawl encourages people to spread out and actually own land, not crowd together in hive cities.
No, it’s because private highways are quite common worldwide. For some reason, they’re only alarming when they’re in the USA.
all i have to say is watch the movie Idiocracy…. it is becoming less funny and more realistic on a daily basis!
As many have read, I am a huge advocate of the free market. However, I would most definitely agree that road maintenance and construction falls under the purview of infrastructure and should be controlled by the electorate. Road construction is clearly a place where the capitalism breaks down and government is necessary. Even without tolls, a free market driven road system would lead us to a system of Vegas sidewalks where you can’t walk in a straight line down the street. Instead you have to go through all kinds of twist and turns passing their businesses in order to get where you want to go.
#24 – Once again, you mistake your hermit like nature and your hatred of all living things for an objective point.
Sprawl is hideous, and fortunately we aren’t all you which means some of us actually like cities.
#24 –
No, sprawl is nothing more than people enjoying the benefits of cities while destroying the countryside which they claim to love, and using tax dollars to subsize the roads that they use to flee the city.
I would like to point out that railroads have the power of eminent domain.