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Speaking of clues
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Posted by JimS (more from JimS) on Sat, 11 Jan 2003 16:34:45 Share Post by Email
In Reply to: You don't have a clue, do you?, Daanimal900, Sat, 11 Jan 2003 00:28:12
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The logic of your assertion about the market externality of highway building seems impeccable, but reality pokes a big hole in it. You wrote, "The only reason we all have cars is because the government built roads for us to drive them on." Really? A close examination of history would reveal that:

1. The national and state highway system as we know it today was built in the 1950's under Eisenhower administration after Bechtel, the construction conglormerate, convinced the administration that a national highway system like Nazi Germany had under Hitler would be beneficial to the rapid deployment of troops.

2. The annual motor vehicle production in 1928 in the US reached over 4 million, today the annual sales (including imports) of US market is about 17 million vehicles. In other words, in the first three decades of 20th century, when roads were mostly maintained at town and municipal levels, and with private funding (especially with bridges), motor vehicle sales increased over four thousand fold (from less than 1000 per year before 1898), with only less than five-fold growth for the seven decades of road building by federal and state governments. People certainly bought cars, millions of them per year, before the federal and state governments got into the road building business in a big way.

3. Turnpikes (for horse-drawn wagons) was big business funded almost entirely in the private sectory in the 1700's and early 1800's. Some say it was bigger than the internet of the late 1990's.

4. Railroad was also a private sector funded form of transportation.

It is far from conclusive that government is the only viable road builder, or that government road building, as opposed leaving road building to the private sector, was effective in promoting automobile sales, espeically considering that gasoline would be less than $1 a gallon now if the government were not levying gasolien tax, and 50 to 60 cents a gallon when it was at $1 at the pump.

posted by 68.160.172...


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