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The Privatization of Roads and Highways - Ludwig von Mises Institute

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Aiding <strong>and</strong> Abetting Road Socialism 395<br />

It’s the question that’s taking Washington, D.C. by storm (well,<br />

at least a little corner <strong>of</strong> D.C.): should tolls authorized to support<br />

new congestion-relief lanes (such as HOT lanes or Rep.<br />

Mark Kennedy’s FAST Lanes) be temporary or permanent? <strong>The</strong><br />

Joint Economic Committee held a briefing session for congressional<br />

staffers on this question last month (June 27) <strong>and</strong> I was<br />

one <strong>of</strong> three panelists. I made the case that such tolls should be<br />

seen as a long-term, permanent measure, both for replacement<br />

<strong>and</strong> expansion <strong>of</strong> the lanes <strong>and</strong> to preserve the powerful benefits<br />

<strong>of</strong> market pricing for congestion management. 33<br />

One problem with this answer is that it further indicates there<br />

is no level <strong>of</strong> minutia <strong>of</strong> government highway operation from<br />

which Poole will restrain his involvement. Let no one attack the<br />

analogy <strong>of</strong> restaurant tablecloths mentioned above as excessive.<br />

Another is that he does not seem to realize that these fees are<br />

akin to taxes, 34 in that they swell the c<strong>of</strong>fers <strong>of</strong> government, <strong>and</strong><br />

thereby reduce comm<strong>and</strong> over goods <strong>and</strong> services enjoyed by the<br />

people. Even a libertarian advocate <strong>of</strong> limited government would<br />

have to acquiesce in the notion that at present, the state spends<br />

far more than the optimal amount <strong>of</strong> the wealth <strong>of</strong> the citizenry.<br />

If so, then any program that further enhances their spending<br />

power is to be rejected, not supported.<br />

States Rothbard on this issue:<br />

Taxes, <strong>and</strong> the tax bite into their earnings, keep going up, on the<br />

federal, state, county <strong>and</strong> local levels <strong>of</strong> government. Semantic<br />

disguises don’t work any more: call them “fees,” or “contributions,”<br />

or “insurance premiums,” they are taxes nevertheless,<br />

<strong>and</strong> they are increasingly draining the people’s substance. 35<br />

33June 2003: www.rppi.org/surfacetransportation10.html<br />

34<strong>The</strong>y do not resemble taxes, but rather payments for services in private<br />

markets, in that road use is a choice; no one is coerced into driving. However,<br />

with the state monopolizing the roads, the degree <strong>of</strong> free choice is less<br />

than it would otherwise be.<br />

35Murray N. Rothbard, Making Economic Sense (Auburn, Ala.: <strong>Ludwig</strong><br />

<strong>von</strong> <strong>Mises</strong> <strong>Institute</strong>, 1995), p. 16.

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