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The Privatization of Roads and Highways - Ludwig von Mises Institute

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410 <strong>The</strong> <strong>Privatization</strong> <strong>of</strong> <strong>Roads</strong> <strong>and</strong> <strong>Highways</strong><br />

feet above, but maybe not if you did so two hundred feet above,<br />

<strong>and</strong> almost certainly not if you did so four hundred feet above.<br />

QUESTION: Can you elaborate on the hypothetical road privatization<br />

<strong>of</strong> one or more municipalities in Saskatchewan.<br />

WALTER BLOCK: In rural Saskatchewan there is a good gravel<br />

road built to the doorstep <strong>of</strong> every farmhouse. Yet many highways<br />

are filled with potholes <strong>and</strong> are quite treacherous to travel.<br />

Currently, the municipalities create <strong>and</strong> upkeep local roads <strong>and</strong><br />

the province does so for the highways.<br />

Municipal property taxes which pay for roads <strong>and</strong> schools<br />

among other things are too high for the liking <strong>of</strong> most l<strong>and</strong> owners.<br />

Tax revolts have recently ignited in southern Saskatchewan<br />

by farmers who were simply too pinched to pay l<strong>and</strong> taxes.<br />

One option to reduce taxes that has been suggested is for two<br />

or more municipal districts to combine <strong>and</strong> pool resources <strong>and</strong><br />

share administration costs. This should, in theory, lower taxes.<br />

Another idea which I would like to promote is the privatization<br />

<strong>of</strong> all municipal services <strong>and</strong> the dismantling <strong>of</strong> this third level <strong>of</strong><br />

government all together in rural areas.<br />

Why launch road privatization in rural Saskatchewan?<br />

Because you would have a far greater chance <strong>of</strong> influencing the<br />

opinions <strong>of</strong> a few hundred farmers <strong>of</strong> the privatization <strong>of</strong> a rural<br />

municipality than you would have <strong>of</strong> convincing city people that<br />

they could live without city hall. Farmers are already self-reliant.<br />

<strong>The</strong>y snowplow their own roads for instance. And<br />

Saskatchewan, where the taxes are high <strong>and</strong> the rural voters are<br />

alienated by the urban/socialist dominated legislature, is a great<br />

place to harness discontent.<br />

QUESTION: So here are some questions these farmers will<br />

need answered before they would sign on to such an experiment<br />

in laissez-faire capitalism:<br />

If a company bought up <strong>and</strong> operated as a business all <strong>of</strong> the<br />

roads in one or more municipalities—how would they best collect<br />

revenue from the users <strong>of</strong> these roads? Note that in an area<br />

perhaps one hundred miles squared there may be a few hundred

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