Me: We only have twenty years of oil left.Dad: We always only have twenty years of oil left.Me: Huh?Dad: My entire thirty-year career, people outside the oil industry have been concerned that we only have twenty years of oil left! People inside the oil industry know that it is expensive and wasteful to explore for oil you don't need yet and won't need for the foreseeable future. There is always routine exploration to replace what is used. Twenty years is a safe inventory for current consumption and exploration for replacement.
There is a lot more happening in Joe Biden’s American Jobs Plan than just throwing money at America’s crumbling roads and bridges. And it’s a good thing, too, because after years of being mildly annoyed by this rhetoric, I’ve actually been researching it and it’s basically a huge myth.Not to say that there are zero roads or bridges in the United States that could use a little repair.But there’s just no reason to believe that the existing surface transportation funding levels in the United States are inadequate. We have some of the best commute times in the world in an international context; our road quality is improving under current funding levels; and the biggest practical problem we have — endemic congestion in a few key metro areas — is not really amenable to being addressed with a big surge of funding.
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Back in 2019, Matthew Turner did a report for the Hamilton Project that has some eye-opening facts about America’s roads. Facts like “they keep getting better.”
That’s not to say we shouldn’t spend money on roads. But I think it does strongly suggest that our basic ongoing level of road funding is fine. What we are currently spending is enough for the interstate highway system to steadily expand while simultaneously improving in quality.
Yes - just as there is an optimum inventory of oil supplies, there is an optimum maintenance schedule for infrastructure. Absent unexpected exogenous changes, spending more is wasteful and spending less is dangerous.
Being a good statist, though not the new breed of woke totalitarians, Yglesias just wants to spend that money on other programs, usually social. He has a long list of criticisms of the US.
Could things be even better? Sure, probably.
But here’s something that I think is telling. Traditionally, the United States funded highway spending by collecting gas taxes as a kind of user fee. But the gas tax was last raised in 1993, and its real value has stagnated since then. Everyone seems to agree that raising it further is politically unviable. There has been some brief discussion by pointy-head types in both parties of creating a new Vehicle Miles Traveled tax to fund roads, but once it became clear that Biden was not doing this in a bipartisanship-seeking way, his team dropped that idea really fast.
This all seems like smart politics to me. But it’s smart politics with a message — the message is that America’s driving public is happy enough with the quality of the roads that they don’t want to pay any extra money for the sake of improving them.
As Kevin Drum notes, the World Economic Forum surveys say that America has some of the best roads in the world. Our bridge failure rate is also normal and fine.
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