Snarkbill 2: Privatize the Interstate System

The government, which owns and maintains the Interstate Highway System, has failed to invest in it, even though reports suggest that the government gets back $6 for each $1 invested in the system.

Therefore, the system will be sold to a private company (we somehow think Bechtel will win the auction, which will go to the most "suitable" company instead of to the best offer).

The highway system cost about $41 billion to build (oops, that was the initial estimate: it acutally cost over $300 billion), so we believe it should be sold for $1 million to a company that promises to invest $41 billion in it over the next ten or twenty years (the government will not monitor closely any sale conditions, just like it never enforces merger conditions, so there's no need to spell it out here).

In order to enable this hypothetical Bechtel-like company to invest in the interstate, it will be allowed to derive revenues from:

1) Charging tolls

2) Charging market rate rents to service businesses on land owned by the System

3) Creating ancillary businesses (such as toll booths, McD's franchises, etc.)

4) Creating priority high toll lanes for business-only traffic. Business keeps the economy going. School buses and other frivolous, non taxpaying traffic may be relegated to the slow lane.

5) Selling tarmac advertising. For example, McD's is interested in having roads within a mile of a franchise painted the appropriate yellow.

Since toll roads (oops, paved roads, we mean paved roads) are vital to national security, the road owner will be allowed to charge a small tax on the value of all goods transported over the roads. The vendors of the goods will pass this tax on to consumers, who will be eager to fund the national defense and the road system, becuase shopping is patriotic.

As is customary in such agreements, the Bechtel-like purchaser will not be required to sign any agreement that would force it to modify its business practices. So while it will collect tax dollars to build roads, it may, if business conditions require, use the money to pay dividends instead.

(Hat tip to Frankston's essay on privatized sidewalks.)