Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.1 6/24/83; site mmintl.UUCP
Path: utzoo!lsuc!watmath!clyde!burl!ulysses!gamma!epsilon!zeta!sabre!petrus!bellcore!decvax!genrad!panda!talcott!harvard!cmcl2!philabs!pwa-b!mmintl!franka
From: franka@mmintl.UUCP (Frank Adams)
Newsgroups: net.politics.theory
Subject: Re: The free market (and lemons)
Message-ID: <957@mmintl.UUCP>
Date: Fri, 27-Dec-85 08:05:19 EST
Article-I.D.: mmintl.957
Posted: Fri Dec 27 08:05:19 1985
Date-Received: Mon, 30-Dec-85 06:46:07 EST
References: <589@calgary.UUCP> <4340025@csd2.UUCP>
Reply-To: franka@mmintl.UUCP (Frank Adams)
Organization: Multimate International, E. Hartford, CT
Lines: 55

In article <4340025@csd2.UUCP> sykora@csd2.UUCP (Michael Sykora) writes:
>>/* franka@mmintl.UUCP (Frank Adams) /  9:52 pm  Dec 18, 1985 */
>
>>Without the power of eminent domain, we would all be much poorer.  Public
>>road-building has done a great deal of good.  You may argue that private
>>roads could have done as well, but that is an unproven assumption.
>
>We must not consider whether some good came out of government policies,
>but whether net good came out of them.  If that is what you are saying,
>then clearly this is an unproiven assumption.

Strictly speaken, it is unproven; but I think it is pretty obvious.

>>In
>>fact, public roadbuilding took place because of a recognized need for
>>the roads, and a perceived inability of the private sector to provide
>>them.
>
>How in the world can that statement be justified?  Who recognized the
>need?  Politicians?  Politically well-connected road builders?  You may
>indeed be correct, but such an assumption needs justification, particularly
>in light of the recent Westway fiasco in New York City.

The need for roads has been recognized by the vast majority of the population
for a long time.  I don't see how you can deny this.

>>The libertarian proposal is to build toll roads.  But for local
>>roads, the cost of collecting tolls probably exceeds the cost of building
>>and maintaining the roads.
>
>If this is true, the local populace would likely contribute to have roads
>paved, unless, of course, they didn't want them.  This would probably
>keep  property values down, though.

We are talking about the prisoner's dilemma here.  Everyone is better off if
the roads are there, but each individual is worse off if they contribute to
building them.

Also, by local roads, I mean everything but expressways.  Local roads are
not used only by local people.

>Incidentally, "electronic road-pricing" technology is becoming cheaper, and
>Hong Kong is planning to implement an ERP system soon.  (There was an article
>about private roads including a note about this in the latest issue of the
>National Taxpayers' Union's newsletter, "Dollars and Sense.")

What is "electronic road-pricing"?  What roads are they planning to apply
it to?

Assuming it is some sort of "use now, pay later" system, Hong Kong has a
great advantage in having essentially all domestic traffic.  Cars driven
in Hong Kong are either driven by a local owner, or rented locally.

Frank Adams                           ihpn4!philabs!pwa-b!mmintl!franka
Multimate International    52 Oakland Ave North    E. Hartford, CT 06108