The Privatization of Roads and Highways - Ludwig von Mises Institute

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An Interview with Walter Block 411 points of entry from non-company territory. There will also be visitors, some frequent and some not. Perhaps these local roads will need to be paid for in full by locals? WALTER BLOCK: It is hard to say how they would best collect revenue from the users of these roads. This is an entrepreneurial decision. It is like asking, before the advent of Disney World, would they charge by the ride, or have an entrance fee? Would they make it cheaper if you purchased a week, month, year long ticket? Now that I’ve ducked your eminently reasonable question, let me speculate about it. One possibility would be a charge per mile, depending upon the time of day, day of the week. Another would be a fixed fee. A third would be some combination, thereof. Perhaps the road owner (likely to be a company the shares of which are owned by the local farmers) would allow choice in this regard to its customers. Those road companies that served consumers well would profit and be able to expand, those that did not would suffer losses, and would be more likely taken over by better managers. Probably, visitors would be charged more, unless the place was trying to attract tourists. Let’s look at private roads in malls. Some allow you to park for free, if they want to encourage attendance. Others charge a fee, unless you make a purchase. Practices vary. So might they in Saskatchewan. All we can say is that if different pricing policies long endure, then they all satisfy consumer needs. If not, the efficient ones will out-compete the inefficient ones. QUESTION: Heavy trucks which haul grain and livestock down these gravel roads are responsible for much of the degradation. Perhaps the drivers of these trucks would need to pay more road access fees than would drivers of cars and pickup trucks? WALTER BLOCK: Here I am on firmer ground. We once did have private roads, several centuries ago. They charged more for heavier wagons, horses, and more axles. They also charged based on the width of a wheel. A lot for thin wheels which churned up the dirt roads (think ice skates) and less for wide wheels which
412 The Privatization of Roads and Highways tamped them down (think steam rollers). I have little doubt that heavy trucks would pay more, lots more. Possibly, they would be charged inversely to the pressure in their tires. On the other hand, if we had private roads, we would most likely have economic freedom all around. This means, in effect, no unions. But organized labor ruined the railroads. Without railroad unions, the railroads would likely carry most freight, and those big trucks would be far scarcer on the highways (confined to short hauls). So, this question might be moot. QUESTION: Many of these country roads come to a dead end at one farmers’ house. In effect, the road is a “driveway” which is primarily used by that one farm family. Would a farmer be able to buy his own road? WALTER BLOCK: Sure. Why not? That is like asking, would someone be able to buy his own newspaper, restaurant, shoe store. Of course, anyone can bid for anything he wants in a free society. On the other hand, there is such a thing as specialization and the division of labor. It is likely that there will arise road specialists, who could take these tasks off the hands of the farmers (with the agreement of the latter). In similar manner, not every farmer is his own carpenter, plumber, roofer, restaurateur, etc. QUESTION: What if an individual bought a road that led to his farmyard but, in addition, was also used (during the era of state owned roads) by a neighbor to reach an otherwise cut-off piece of property? Now, for some reason (perhaps the two neighbors hate each other) the new owner of the road decides to deny passage of his neighbor. What are the likely resolutions to this problem? WALTER BLOCK: I cover this question in chapter 1 of this book. Suppose you live on a street, and all of a sudden its owner says either you can’t get out onto the street at all, or he’ll charge you one million dollars each time you do so. Do you have to ride a helicopter, or become a great pole-vaulter, to get off your own property? Not at all! Under present institutional arrangements, before you buy a house or any piece of property, you get title insurance. You want to be protected against anyone else claiming he really owns the house you just bought. Well, in an era of pri-
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The Privatization of Roads and High
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This book is dedicated to my fellow
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vi The Privatization of Roads and H
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viii The Privatization of Roads and
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x The Privatization of Roads and Hi
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Acknowledgments Iwould like to than
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Introduction Most people who read t
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Introduction xvii dealing with obje
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1 Free-Market Transportation: Denat
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Free-Market Transportation: Denatio
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3 Public Goods and Externalities: T
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Public Goods and Externalities: The
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Part II Applications
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6 Road Socialism * What are the bes
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Road Socialism 185 of the state app
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Road Socialism 187 It is in order t
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Road Socialism 189 indicates that v
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Road Socialism 191 vehicle inspecti
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Road Socialism 193 that “The domi
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Road Socialism 195 imaginative and
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Road Socialism 197 2. Perhaps the p
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Road Socialism 199 bouncer, to each
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7 Compromising the Uncompromisable:
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Compromising the Uncompromisable: S
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8 Roads and the Immigration Issue T
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Roads and the Immigration Issue 217
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9 The Motor Vehicle Bureau Newly ar
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The Motor Vehicle Bureau 225 In the
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10 Privatize Public Highways * Acro
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Privatize Public Highways 231 Thoma
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11 Homesteading City Streets: An Ex
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Homesteading City Streets: An Exerc
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13 Transition to Private Roads * Le
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Transition to Private Roads 281 pre
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Transition to Private Roads 283 Blo
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Transition to Private Roads 285 to
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Transition to Private Roads 287 But
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Transition to Private Roads 289 The
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Part IV Critiques
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15 Comment on “Roads, Bridges, Su
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Comment on “Roads, Bridges, Sunli
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16 Roads, Bridges, Sunlight, and Pr
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Roads, Bridges, Sunlight, and Priva
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17 Who is Responsible for Traffic D
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Who is Responsible for Traffic Deat
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