Wednesday, March 08, 2006


Transportation Fallacy

The Detroit Free Press has an article today titled "Granholm's plan for roads means more jobs for state". Need I say more? (I will anyway though)

The state of Michigan will "for the first time ever", help cash-strapped Michigan cities and counties "pay their share of road construction contracts as a way to restart stalled work and create thousands of needed jobs", Gov. Jennifer Granholm said Tuesday.

This will "create" approximately 7,100 jobs over the next two years at a price tag of $400 million. According to analysts, this is not enough. But they concede that it is a start in the "right" direction. Michigan apparently has far more road needs than it can afford -- a $30-billion shortfall over the next two decades, by some estimates.

One question: What the hell have they been doing with transportation over the last few decades, to need $30 billion as a fixer-upper?

This is actually a nice example of what is seen and what is not seen. Bastiat would have greatly appreciated this commentary by the Detroit Free Press and the Governor of Michigan. Like always, we still have to look at what cost to individuals and private enterprises does this $400 million and 7,100 jobs come.

I sometimes wonder if the politicians believe that they are providing a net "good" and simply don't understand the economic reality or if they knowingly deceive the public for their own private gain.

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