The Privatization of Roads and Highways - Ludwig von Mises Institute

Aiding and Abetting Road Socialism 385
According to the analytic framework developed above, it
would be one thing for a free-market oriented analyst to note that
were roads privatized, those that focused on seat belts, i.e.,
assigned their police forces to concentrate on such violations,
would likely lose out in the profit-and-loss war with other highway
firms who addressed more important issues, such as driver
recklessness. That would be an eminently sensible point to make,
and if the road socialists adopted this insight, well, at least lives
would be saved.
However, it is entirely a different and more problematic matter
to be gratuitously dispensing advice to those who are responsible
for road carnage in the first place. This sort of stance plays
fast and loose with the job of the free-market advocate which is,
wait for it, to be advocating free markets, and not advice
intended to render more efficient institutions which are very
much the opposite of free enterprises.
“WE” ARE LOSING TAX BASE
Two of the biggest challenges facing public officials in America
today are deteriorating roads and highways and a lack of
funding to pay for needed improvements. Since the Interstate
Highway System was completed in the early 1990s, we have witnessed
a continual decline in the overall condition of our nation’s
road infrastructure. There are several reasons for this.
First, the purchasing power of the fuel taxes we now collect—
the principal means of highway finance in the U.S.—has
declined dramatically since the 1950s. Second, vehicle fuel
economy has risen dramatically during the same time, so we do
not collect the same amount of taxes on a per mile basis as we
once did. And third, many officials are unwilling to increase
fuel taxes because of intense voter opposition to new or higher
taxes of any kind. 18
18 Transportation Finance Summit conference background and purpose,
March 3–4, 2004; brochure.