Infrastucture bank is not an evil plot by Hillary

[rogerashton]

14. It is a good idea, but there are some dangers.

I'm a Berniac, by the way.

The proposal for an infrastructure bank to fund projects that would pay for themselves through a steam of toll revenues is, so far as that goes, a good idea that ought to be implemented. It creates several kinds of benefits. The toll revenues would pay the bonds -- first claim -- and any surplus should then revert to the government.

The provision of road services for free is not a particularly progressive position. We should advocate efficient pricing of road services, and a zero price for road services is not efficient, especially if the roads are congested. Historically, roads have mostly been free because it costs a great deal to build toll plazas and staff them. (A bridge from Washington to Oregon was made free because the toll-collection lost money, if I am not mistaken.) With 21st century electronic technology -- EZPass (R), cellphones, satellite positioning -- there is no reason we should not each pay the cost of the roads we use.

The cost would not fall disproportionately on the poor, because the poor are more likely to use public transportation. People in chauffered cars probably would not pay their fair share, but the way to correct that is by means of a wealth tax.

There is a proposal on the right to establish toll authorities to manage these tolls, and auction them to be collected and managed by private firms -- a form of privatization. This must be prevented. The toll collection should be managed by government or by government-established nonprofits -- "quangos" -- with the clear mission of efficient, not profit-seeking, pricing. As Joe Stiglitz observes, a big part of the inequality in our society has been created by government giving away profitable assets to private sector "entrepreneurs." That is the danger we face here, and any proposal for an infrastructure bank should make it clear that the private sector will be kept out of the public patrimony that are our roads and highways. A public-private partnership means the government picks your pocket and the private sector banks the proceeds.

The way to prevent that is to back a progressive program for efficiently priced roads in public ownership, not to dismiss any pricing as nasty right-wing subterfuge.