The Washington Monthly: Highway Tolls
The Washington Monthly
This used to be a free country. Past tense. And, here's the proof. The Republicans are making room for tolls on the Interstate Highway System. The IHS is paid for by the gas tax, which our oil company executive President does not want to raise, and tolls used to be a big no-no, on gas-tax financed highways.
The bozos, who inhabit econ depts, like to think "congestion tolls" in urban areas are an "interesting idea."
There are two useful points to be made about "congestion tolls":
1. They only make economic sense for truly scarce resources, like a bridge or a tunnel.
2. For ordinary highways and streets, the only effect of a congestion toll is to displace the congestion from one street to another.
3. If you are rich, you get to buy your way on to a private highway; let the peons use the "free" highways. (Now, you begin to understand why Republicans like it, so much.)
4. If you put a tax on something, you get less of it; if you put a price on something, you get more of it. Put a price on congestion, you will get more of it, not less. This is demonstrated by (california) Orange County's toll roads; the local highway departments are actually barred for a terms of years (extending up to 50), from relieving the congestion, which makes the toll roads attractive and profitable. Sweeet!
This used to be a free country. Past tense. And, here's the proof. The Republicans are making room for tolls on the Interstate Highway System. The IHS is paid for by the gas tax, which our oil company executive President does not want to raise, and tolls used to be a big no-no, on gas-tax financed highways.
The bozos, who inhabit econ depts, like to think "congestion tolls" in urban areas are an "interesting idea."
There are two useful points to be made about "congestion tolls":
1. They only make economic sense for truly scarce resources, like a bridge or a tunnel.
2. For ordinary highways and streets, the only effect of a congestion toll is to displace the congestion from one street to another.
3. If you are rich, you get to buy your way on to a private highway; let the peons use the "free" highways. (Now, you begin to understand why Republicans like it, so much.)
4. If you put a tax on something, you get less of it; if you put a price on something, you get more of it. Put a price on congestion, you will get more of it, not less. This is demonstrated by (california) Orange County's toll roads; the local highway departments are actually barred for a terms of years (extending up to 50), from relieving the congestion, which makes the toll roads attractive and profitable. Sweeet!
posted by Bruce Wilder at 10:15 PM
<< Home