What we have found is that the underlying financing mechanisms of the suburban era -- our post-World War II pattern of development -- operates like a classic Ponzi scheme, with ever-increasing rates of growth necessary to sustain long-term liabilities. ... The local unit of government benefits from the enhanced revenues associated with new growth. But it also typically assumes the long-term liability for maintaining the new infrastructure. This exchange -- a near-term cash advantage for a long-term financial obligation -- is one element of a Ponzi scheme.It certainly goes a long way towards describing why there's always construction but yet the roads just never seem to get any better.
The other is the realization that the revenue collected does not come near to covering the costs of maintaining the infrastructure. In America, we have a ticking time bomb of unfunded liability for infrastructure maintenance. The American Society of Civil Engineers (ASCE) estimates the cost at $5 trillion -- but that's just for just major infrastructure, not the minor streets, curbs, walks, and pipes that serve our homes.
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Even if they acquire the funds the process of installing new pipelines, bridges, subway systems and electrical grids will be a monumental disruption to our society. It’ll be interesting to watch the engineering and construction process. I think the problem with the lack of funds is that investment in the infrastructure has not been an ongoing process. Many bridges for example are approaching or past their design lifespan. If funds were set designated to these projects they would not have been available for other expenditures. It’s like inheriting your grandfather’s house and living in it, never spending a dime on upkeep, until one day it needs more work than you can afford. It is not that you didn’t have the money rather it is that you spent the money on something else.
That's an excellent point, and you just gotta wonder on what was the money spent? Expanding infrastrastructure into ever newer communities? Entitlements such as social security and medicare? The military industrial complex? Whatever it is, I see the disruption all around me - a bridge over the train tracks just a few miles down the road has to be replaced and the re-routed traffic makes one of my well traveled routes longer due to the extra cars.
Regardless, I think what Strong Towns is getting at is more sustainable development. Aim for smaller communities where folks can bike or walk to work or the store as much as possible. Don't structure the tax incentives to encourage sprawl development (banning mix-used buildings, requiring all lots to be an acre or more, certain number of lanes per road, etc.) over projects that favor small communities. It seems like a good idea, but I just don't see it catching on in this environment. Plus, with kids, i'll be in the car most of the time anyways.
Well I have some ideas on where we spend our money. How about the war in Iraq? It is an option to say "Hey, we can't afford this war." After we blew their country to smithereens we spent billions rebuilding their country's infrastructure. Do you remember the protests here at home over the building of new schools in Iraq when we need them here in the US?
I’m also a proponent of closing down US military bases around the world. We don’t need to defend South Korea from North Korea. They have money and manpower to do it themselves. We could even sell them all the hardware and just have the GIs jump on planes and come home. The same thing goes for Germany. We have all those troops there dumping money into the German economy. Bring them home. The United States does not need to be an imperial power on the globe. Our forefathers never intended it and we simply can’t afford it!
How about the tarp bailout? Many economists say it wasn’t necessary to “save” all those companies. Their failure would have benefited others. A lot of that money even went to foreign banks!
So there’s just a few examples of spending priorities. Maybe a trillion or so I don’t know. I am sure however that we could rebuild many highways, bridges and dams with that money.
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