Even libertarians don't want private roads

Can you ever have free-market highways?

Just missing the UK news agenda, the Atlantic has a post up on road tolls and private highways. In a reversal of the norm for discussions of high degrees of privatisation, its merely a theoritical concern for Americans, but has deeply practical relevence for Brits.

Timothy B. Lee writes:

While I'm generally sympathetic to the idea of privately-managed roads, I've become convinced that the broader vision of "free-market roads" is a conceptual confusion. In the abstract, the idea of competing, privately-owned roads has a lot of appeal. But the more I think about it, the less sense it makes. Roads are deeply intertwined with governments. They always have been and as far as I can see they always will be. This means that they'll never be truly private in the sense that other private companies like restaurants or shoe factors can be.

Assembling the land needed for a long-distance road is prohibitively expensive without government assistance. Unsurprisingly, private roads almost never come into existence without extensive government assistance. And that means that the profitability of a "private" road depends crucially on how many competing roads the government allows to exist.

Lee is no anti-privatisation zealot, either. An adjunct scholar with the high-libertarian Cato Institute, he's exactly the sort of person who would love to support the government taking a back seat on provision of transportation.

It is noteable that the government's plans don't involve large scale private road-building, but the lesser challenge of handing over the maintanence and development of existing roads to private investors on extremely long-term leases. If the private companies do so purely through existing funding, then the issue is merely one of comparative efficiency of the public and private sector, and the privatisation is just a showy, irreversible outsourcing. But if, as Cameron suggested, they are allowed to charge tolls on new capacity, then that carries additional risks.

As Lee argues, because any large scale road-building (which surely includes things like adding extra lanes to motorways, cited by Cameron as something which could be funded through tolls) requires massive public support, through use of eminent domain to assemble the land and no-compete clauses to prevent revenue streams from drying up, tolls on previously public roads represent, at least in part, a tax on mobility.

There is one key difference between the American and British contexts, though; in the UK, competition – of a sort – exists. Freight is frequently moved through the rail network as well as the roads, and shipping is far more useful in a country which is never further than 70 miles from the sea. Of course, true competition means avoiding "too-big-to-fail" scenarios; for now, the idea of reposessed roads might be a bit much to handle.

Future of British roads? A Bolivian highway. Credit: Getty

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland