The Privatization of Roads and Highways - Ludwig von Mises Institute

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Privatize Public Highways *
Across the United States, more than four million roads,
streets, and highways tie cities and states together and
enable citizens to work, travel, and shop. Americans
enjoy unprecedented freedom and convenience, as our whole
economy is directly dependent upon this mobility. This makes
the entire nation, in effect, one gigantic assembly line for the production
and transport of goods.
Because of the importance of the U.S. transportation system,
many believe that only the government can own and manage it.
This is not the case. Privatization of the public highway system
would provide economic efficiencies and other benefits.
Private ownership, which would include competitive roads
owned by people and corporations that can charge tolls, would
allow the incentive for profit to benefit consumers, as it does in
other areas of our lives. We would see the results in increased
safety, reduced traffic congestion, and, of course, tax savings.
The public highway system is a prime example of a public
firm that is large in size, lax in management, and a costly burden
to taxpayers. Public highways are suffering from problems of
1 Michelle Cadin and Walter Block, "Privatize the Public Highway System,"
The Freeman 47, no. 2 (February 1997): 96–97.
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