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HSR Urbanists: “We Are All O’Tooles Now”

I probably won’t make any friends today, but now I’ve read one too many urbanist (many who’s ideas I usually respect) use unsound logic to support high speed rail. This argument often includes something like this: “…and furthermore, highways and airports don’t come close to paying for themselves, therefore high speed rail need not meet that hurdle either.” Here’s some examples of the typical contradiction many usually-reasonable urbanists are making when arguing for high speed rail- Ryan Avent in an article plagued with this pseudo-logic: Government is going to build more capacity. Given that, what is likely to be the best investment, all things considered? Available alternatives, as it turns out, are not all that attractive. Roads do not appear to pay for themselves any more than railways do. Receipts from the federal gas tax come close to covering federal highway expenditures, but gas is used on highways and non-highways alike, indicating that at the federal level, highways are subsidized. and: I respect Mr Cowen very much, but I think it’s long past time we stopped listening to libertarians on the issue of whether or not to build high-speed rail. Who will ask whether road construction remotely passes any of the tests they’re so prepared to push on rail? And if we begin charging an appropriate fee on drivers to maintain existing roads and reduce congestion, what do they all think will happen to land use patterns and transportation mode share? Some have emailed to ask me why I dislike Randal O’Toole so much.  The main reason is because people like Avent will always be able to point to the government highway-lover from CATO and rashly proclaim all libertarians have forever lost credibility when it comes to transportation and land use.  Of course, Avent’s narrow-mindedness on this topic deserves contempt […]

20/20 Segment on Private Roads (& Some things to ponder while in traffic)

Some other things to ponder for the next time you are sitting on a congested highway… When I talk to people about tolling roads, most people immediately reject the idea entirely.  I like to ask them to think about it next time they are in a traffic jam.  Hey, if you sit in traffic, you probably spend a lot of time thinking…  So, next time you are waiting for the car ahead of them to move, think of what dollar amount you would be willing to pay to avoid the traffic jam in order to get to your destination.  Then, think of waiting in a long bread line, as if the only source of food were free government bread.  Obviously, the bread is underpriced.  How much would you be willing to pay for a loaf of bread to avoid the line?  Recall the price you were willing to pay to avoid traffic and ask yourself whether roads are priced correctly.  Interestingly, almost all people are fully willing to pay for bread, a staple of life, while we tend to think of roads as “too important to leave to private companies.”  So from now on, think of a bread line every time you are sitting in traffic. After a few commutes, you might be ready for some more thinking on the subject.  Once you’ve learned to recognize the socialism of the highways, think about how tolled roads might affect where you decide to live.  Would you live further away from your destination, and gladly pay for a congestion-free commute?  Or would you choose to live closer to work, to pay less in tolls?  Now, keeping in mind that most highways are congestion-free when they are originally built, ponder how socialized roads effect living patterns.  Had roads been priced properly, would the […]

“Misbuilding” the Future, Again…

From "Highway to hell revisited", a Financial Times article by Christopher Caldwell: The Highway Act probably has more defenders than detractors. But Mr Obama should be among the latter. The act, which budgeted $25bn in federal money to build 41,000 miles of motorway, exacerbated the very problems Mr Obama has been most eager to solve – spoliation of the environment, dependence on foreign oil, overburdening of state and local budgets, abandonment of the inner-city poor and reckless speculation in real-estate development, to name a few. The article goes on to discuss the history of the Highway act of 1956, some of the problems it caused, and critiques of the sprawl caused by the dangerous feedback-loop created by over allocating resources to infrastructure.  I recommend reading the whole article, which concludes: The infrastructure network that came out of the Highway Act had higher overheads than the one it replaced. It became a bottomless pit of spending. The largest building project in Mr Obama’s Recovery Act is $27bn for roads, and there have been no complaints that the government will have a hard time finding things to spend it on.  The US has big economic problems. But they have been made worse, and harder to resolve, by a half-century in which, at federal urging, the country was misbuilt. There is an inherent bias in favour of government projects. The successes can be mythologised through commemoration, goading future generations to imitate them. The failures are fixable only through equally extensive projects to undo them. This makes it easy to forget that there is no social or economic problem so big that a poorly targeted government intervention cannot make it worse. On the subject of “misbuilding”, this Onion video is the funniest thing I’ve seen in a while, and is pretty much how I […]

Urban[ism] Legend: The Myth of Herbert Hoover

Herbert Hoover is not a man I consider a “Legend” – quite the contrary.  I use the words “Urbanism Legend” in the context of the series of posts intended to dispel popular myths as they relate to urbanism. Myths and fallacies about Herbert Hoover are abundant these days as the media discusses the Great Depression. Most of the myths incorrectly accuse Hoover of being a laissez-faire ideologue. However, Hoover is better described as a Progressive, and strongly believed in the power of government to shape society. (at the time Progressive elitists enjoyed a home within the Republican party and advocated vast social engineering programs such as alcohol prohibition) This was a significant departure from the relatively laissez-faire doctrines of previous Republican Presidents Coolidge and Harding. In fact, Hoover’s commitment to progressive programs prompted Franklin Roosevelt’s running mate, John Nance Garner, to accuse the Republican of “leading the country down the path of socialism” during the 1932 presidential campaign. I urge everyone to learn more about Hoover’s progressive interventionist policies on your own. (I also recommend Rothbard’s America’s Great Depression)  But, let’s look at Hoover’s anti-urbanist interventions, and legacy of sprawl. Hoover, an engineer by trade, was a strong supporter of the Efficiency Movement, a significant campaign of the Progressive Era.  He believed everything would be made better if experts identified the problems and fixed them, and that efficiency could be achieved through government-forced standardization of products. This helps explain Hoover’s zealous affection for planning, zoning, home ownership, and various objectives often shared by the (often conflicting) elitist-progressive strains seen in Robert Moses or Lewis Mumford (and later New Urbanists).   (not to be confused with the Roosevelt New Deal Democrats who preferred intervention to promote decentralization and ruralization) Hoover’s philosophy on planning and zoning could be exemplified by his praise of […]

Redistribution (a follow up)

I threw up Friday’s Redistribution post somewhat hastily during my break, but there isn’t much more that I haven’t said before.  As a follow-up, I’d like to tie it in with some other interesting reads. Ryan Avent at The Bellows agreed with Yglesias’ post and added: Anyway, I saw in Google reader that libertarian intellectual Will Wilkinson had shared Matt’s post, presumably because he agreed with it. And indeed, this is one of those times when libertarians and liberals can find common cause. On the other hand, most of Cato’s planner types vigorously defend suburban sprawl and highway construction, and vigorously oppose smart growth and transit construction, despite the obvious point that it takes an immense web of regulations and subsidies to support rapid suburban and exurban growth. Over here! Ryan, Will! We’re over here!… Definitely check out The Bellows post. Will Wilkinson stopped in to comment, too. I think the “common cause” concept was conveyed well in Ed Glaeser’s recent NY Times piece, called The Case for Small-Government Egalitarianism. Harvard’s Glaeser reaches out for “common cause” between libertarians and progressives – kinda like the links between Free-Markets and Urbanism: Libertarian progressivism distrusts big increases in government spending because that spending is likely to favor the privileged. Was the Interstate Highway System such a boon for the urban poor? Has rebuilding New Orleans done much for the displaced and disadvantaged of that city? Small-government egalitarianism suggests that direct transfers of federal money to the less fortunate offer a surer path toward a fairer America. and Many of my favorite causes, like fighting land use regulations that make it hard to build affordable housing, aid the poor by reducing the size of government. In the wake of Hurricane Katrina, I also argued that it would be far better to give generous […]

Uncomfortable truths about the progressive legacy

by Stephen Smith Yesterday I was listening to the pre-inaugural concert at the Lincoln Memorial on the radio, and one of the speakers said something that struck me as emblematic of the challenges that Barack Obama faces, though I doubt she realized the ironic significance. She was praising Theodore Roosevelt’s conservationist legacy as a model for Obama, with some quotes from him at the Grand Canyon or Yosemite or some other celebrated national park, though she only touched on a small sliver of Roosevelt’s environmental legacy. He definitely did cherish the environment; a timeline of his life shows that in early April 1903 he “commune[d] with deer while writing letters in Yellowstone, WY.” He was indeed a conservationist, as were many progressives at the time. But the progressives were also something else – something that today’s progressives would do well to remember: ardent planners whose plans often had grave unforeseen consequences. Just after his time communing with the deer at Yellowstone, Roosevelt traveled to St. Louis to address the 1903 Good Roads Convention. The “good roads” movement dated back to before the automobile rose to prominence, and was formed to agitate for improved roads for bicyclists and farmers. But around the time of Roosevelt’s speech, the movement was hijacked by the budding auto-industrial complex. Unwilling or unable to compete on their own against mass transit, the automakers, highway engineers, and road contractors sought for the state to both acquire the rights of way necessary for the roads, and to pay for them to be paved – an advantage the streetcars and railroads did not generally have. Not wanting to appear to be too blatant in their rent seeking, these interests lobbied the government indirectly, giving organizations like the AAA money in exchange for influence and seats on their boards. The […]

Urban[ism] Legend: Positive NPV Infrastructure

As Washington debates how many hundreds-of-billions of the nearly trillion-dollar stimulus will go towards infrastructure or to other spending/tax cut schemes, pundits claim that spending billions on “shovel ready” public works projects can effectively create jobs that will lead to recovery. As readers probably know, I am skeptical that the anticipated spending could be activated so quickly. As Bruce Bartlett put it: Despite claims by the Conference of Mayors and the transportation lobby that there is as much as $96 billion in construction “ready to go,” the fact is that it takes a long time before meaningful numbers of workers can be hired for such projects. As a recent Congressional Budget Office study explains, “Practically speaking … public works involve long start-up lags. … Even those that are ‘on the shelf’ generally cannot be undertaken quickly enough to provide timely stimulus to the economy.” The prospects for unconventional projects such as alternative energy sources are even worse. The CBO calls them “totally impractical for counter-cyclical policy” because they take even longer to come online… Finally, the impact of increased public works spending on state and local governments cannot be ignored. Most federal transportation spending goes for projects initiated by them. When they think there is a chance that the federal government will increase its funding, they tend to cut back on their own spending in hopes that the feds will foot the bill. A study by economist Edward Gramlich found that the $2 billion appropriated by the Local Public Works Act of 1976 postponed $22 billion in total spending as state and local governments competed for federal funds and actually reduced GDP by $30 billion ($225 billion today). Meanwhile, proponents of infrastructure spending claim that Congress should sift through the shelved projects to identify those projects that will be economically […]

Private Roads Work

Bart Frazier wrote a brief article for the Future of Freedom Foundation on private roads. He begins by discussing how most Americans remain strongly opposed to privately owned roads, while at the same time many have warmed to private education, medicine, and social security. This first part of the article is somewhat similar to many articles advocating private roads. In the second part of the article, Bart goes on to discuss some examples of private roads in America, including a homeowners association, The Dulles Greenway in the suburbs of DC, and the city of North Oaks, Michigan, which doesn’t even own any property. Frazier concludes: Everyone, particularly libertarians, should favor private roads. They have much going for them — they rely on mutual consent for their construction and use, and the market decides what is the appropriate level of their use. People who don’t want to use them are free to spend their dollars on other things that they consider more worthy. And as far-fetched as they seem to some, we have examples of working private roads. I cannot think of a better way for cash-strapped state governments to reduce their budgets than to stop paving the roads.

Yes, Virginia, government roads really are government subsidized, and no, they don’t approximate freed-market outcomes

Recently, I came accross an article by Charles Johnson, who blogs at Rad Geek.  The article had linked to a Market Urbanism post about how user fees and gas taxes fall well short of funding road use in the US. Charles’ article further debunks the Urbanism Legend asserted by free-market imposters that a free-market highway system would be similar to the system we see today. I like the post so much that I asked Charles about posting it at Market Urbanism.  Charles requested that I, “indicate that the post is freely available for reprinting and derivative use under the terms of the Creative Commons Attribution-ShareAlike 1.0 license.” I am happy to comply, and must admit that I haven’t taken the time to acquaint myself with Creative Commons.  So, here it is, in it’s original form, and feel free to read the comments in the link: Yes, Virginia, government roads really are government subsidized, and no, they don’t approximate freed-market outcomes by Charles Johnson, RadGeek.com When left-libertarians argue with more conventionally pro-capitalist libertarians about economics, one of the issues that often comes up is government control over roads, and the ways in which state and federal government’s control over roads has acted as a large subsidy for economic centralization and national-scale production and distribution networks (and thus, to large-scale “big box” retailers, like Wal-Mart or Best Buy, dependent on the crafty arrangement of large-scale cross-country shipping as a basic part of their business model). People who have a problem with this analysis sometimes try to dispute it by arguing that government roads aren’t actually subsidized — that heavy users of government roads are actually getting something that roughly approximates a freed-market outcome, because users of government roads pay for the roads they get, in proportion to how heavily they use them, because government […]

Irrationality Towards Shortages

Brendan Crain at Where tipped me off to a great post by Ryan Avent at The Bellows. Here’s a little snippet of Shortage: For whatever reason, we’re not built to naturally internalize negative externalities. When riding on a crowded highway, no one (no non-economist, at any rate) curses the government for not making the road more expensive; they demand more capacity — fewer traffic lights, higher speed limits, more lanes, more roads. And when free parking results in no available parking, no one demands market pricing for spots; they ask why the lot’s so small and the garages so scarce, and they get angry about those two new developments that just went in, bringing new residents who unsurprisingly use the valuable, yet free, parking spots when they’re open. We see a shortage of a public good, and we think more, not more expensive. And as a result, the failure to price public goods appropriately leads to an inefficient use of existing resources, and an inefficient allocation of new resources. We don’t use existing roads well, and we spend too much valuable capital building new roads. We don’t use existing parking well, and we spend too much valuable capital building new parking OR we allow shortage concerns to undermine good investments. This type of anti-market bias which seems to be the natural default in humans creates unhealthy positive-feedback loops such as the highway -> development -> congestion -> widen/extend highway, etc. loop. But in that light, we should be glad modern society has been able to overcome so many of its anti-market biases such as making profits, charging interest, and trade between strangers. Hopefully, as society adapts to deal with issues of scacity of land, resources, and time, it will overcome the unhealthy biases it needs to shed to sustain growth. […]

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