Sen. Reed on unemployment benefits defeat: ‘I will not be giving up’


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Sen. Jack Reed pressured regulators to launch criminal charges against fraudulent bankers.

Despite a defeat in the Senate today, Jack Reed said on the chamber floor after Republicans beat back his proposal to extend long-term unemployment insurance, “I will not be giving up on this matter.”

Reed, Rhode Island’s senior Senator, sponsored the bill and led the charge among Democrats to extend federal unemployment benefits for 1.3 million Americans for another three months. While Reed was confident the bill would pass earlier this month (You can listen to my conversation with Sen. Reed on his thoughts about a Senate vote on Jan 3 here.) Or just the audio here:

But then the issue seems to have devolved into procedural politics.

Here’s what Senator Reed said on the Senate floor earlier today:

Mr. President, I rise today to express my severe disappoint that we have been blocked from moving forward with this legislation.  There are about 1.5 million Americans who have lost unemployment insurance since December 28.  And people will continue to fall off the cliff, about 70,000 a week, until we renew these benefits.

This is an emergency.  That’s why it’s so urgent that the Senate extend this emergency program today.  Indeed, December’s employment report shows that the economy still needs support.  While the unemployment rate dropped to 6.7 percent, the economy isn’t producing enough jobs and folks are leaving the labor force.  As long as this program is expired I expect this trend to accelerate -folks will stop looking for and finding jobs.

We need to keep the economy moving forward and creating jobs; and extending these benefits is part of that effort.

I hope my colleagues recognize this and recognize that the proposal they filibustered is a major concession to many of my Republican colleagues who have said they don’t want to consider this as emergency spending, that they want to reduce the duration of benefits, and they want policy changes.

That said, I think it is important to make it clear for the record the steps our side took on this issue.

First, we proposed an emergency spending extension of current law, just as we did last year and in many past extensions, but many on the other side said “no.”

Then, our colleagues on the other side of the aisle demanded the bill be paid for.  When we agreed and suggested closing tax loopholes – egregious loopholes that should be closed anyhow – like ones that encourage jobs to be shipped overseas   they said “no”.

Next, we suggested a mix of loophole closures and spending cuts, and they said “no” again.

So we came up with a pay-for that was endorsed in the bipartisan Murray Ryan budget, and they said “no” again.

And I’d like to remind my colleagues again that this program has traditionally been considered emergency spending.  Indeed, the White House has noted that “fourteen of the last 17 times in 20 years that it’s been extended, there’s been no strings attached.” And that the five times President Bush extended this program there were no offset strings attached.

Then, my Republican colleagues sought reforms and reductions to the program, and so we put forward a proposal to do just that.

My Republican colleagues also requested the ability to offer amendments, which is fair, so we said “yes.”

So I’d like to underscore the point we’ve made major concessions.  This emergency and temporary program would have been paid for by locking in reductions in mandatory spending permanently.  The duration of the extension and the duration of the amount of aid to the long-term unemployed would have been reduced.

We had even incorporated an idea from Senator Portman that relates to fine-tuning the concurrent income support payments under unemployment insurance and disability insurance – this proposal causes serious pause for me and others, especially in terms of perhaps disincentivizing individuals with disabilities from working, which is a long-time principle of our disability policy – which is why I introduced a second degree and substitute amendment to address this very issue.

We’ve been debating the extension of extended unemployment compensation since December, when my colleagues on the other side of the aisle were willing to and ultimately let UI expire.  We’ve been working with them since that time to renew these vital benefits – vital to the individual and their family and vital to the economy as a whole.  In this effort, we’ve made tremendous permanent policy concessions for an emergency and temporary program, and offered an amendment process.  This is what they have asked for.  Unfortunately, some of my colleagues on the other side of the aisle can’t take yes for an answer and have filibustered this legislation to extend UI.

And for some further background,  yesterday there was a new demand to re-write the underlying proposal in ways that will add further impacts on the out of work, students, the disabled, and a host of others beginning in 2015.

Mr. President, I have been in the minority in the Senate.  I have been here when there was a Republican President.  I have seen the Senate work well and not so well.  Today, will be one of those “not so well” days when a great deal has been offered to the other side of the aisle, but for a variety of reasons they cannot get to “yes.”

I will not be giving up on this matter.

Millions of Americans are out of work and there are almost 3 job seekers for every job vacancy.  They cannot be left in the lurch.  They deserve better and I stand ready to work with anyone on a rational proposal to help them. We will keep working on this and hopefully the other side will find a way to let us move towards an up or down vote on extending these benefits, which would help over 4 million Americans over this year and put our economy on much better footing.

Celebrate Dr. King’s birthday in Central Falls tomorrow night


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Central Falls Mayor James Diossa has invited you to celebrate what would be Dr. Martin Luther King’s 85th birthday tomorrow night with him, Jim Vincent of the Providence NAACP and others tomorrow night starting at 5pm.

“Dr. King inspired us all with his words, his deeds and his committment to non-violence and social justice,” Diossa said in an email. “He fought for people of color, the poor and to make freedom real for all people.  He stated that “Change does not roll in on the wheels of inevitability, but comes through continuous struggle. And so we must straighten our backs and work for our freedom.”

Here’s the agenda for the celebration in CF:

  • 5:00 Welcoming Speech: Mayor James A. Diossa
  • 5:05 NAACP President: Jim Vincent
  • 5:15 Performances by TALL University and CFHS
  • 5:30 “The Drum Major’s Instinct” Rendition: Joe Wilson Jr.
  • 5:50 Winter Food Drive: Progreso Latino
  • 6:00 Closing: Mayor James A. Diossa

Progreso Latino’s annual winter food drive begins tomorrow night too, so please consider bringing an extra can of something non-perishable.

mlk

No permit required: political canvassing is a Constitutional right


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DavidFasteson-225x300David Fasteson is mounting a challenge against Stephen Archambault who as the State Senator from District 22, represents parts of Smithfield, North Providence and Johnston. Archambault, though a Democrat, sits to the right on many progressive political positions. He has been rated at 29% by the ACLU and was rated 83% by the NRA, earning the National Rifle Association’s endorsement. In seeking the nomination of the Democratic party, Fasteson plans to run as a more progressive candidate.

It was while canvassing (going door-to-door in search of votes and support) in Smithfield on Sunday evening that Fasteson was approached by a police officer who told him that canvassing requires a permit under Smithfield law. A look at the law reveals that the permit is only applicable to canvassing for sales, not for religious or political reasons.

The Supreme Court has consistently ruled that onerous restrictions on religious and political canvassing are unconstitutional under the First and Fourteenth Amendments. Relevant cases include Martin v. City of Struthers, Hynes v. Mayor of Oradell, Village of Schaumburg v. Citizens for a Better Environment, and Meyer v. Grant.

In a phone call with the Smithfield Town Clerk Monday morning Fasteson confirmed that he would need a permit if he were going door-to-door seeking to sell some good or service, but politicians do not need these.

Most likely this is just a minor mistake by an overzealous police officer, perhaps responding to a citizen’s complaint. Even so, it would behoove police officers to be mindful of the protections guaranteed our citizenry under the Constitution of the United States.

As of our last communication David Fasteson plans to continue canvassing, without a permit.

Social impact bonds: ‘do they promote public good, or sell it?’


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raimondo fist pumpGina Raimondo “kicked off” her campaign for Governor yesterday, and wouldn’t you know it, but the centerpiece of her policy proposals will be a new invention of Goldman Sachs, the “social impact” bond.

What, you might ask, is a social impact bond?  The idea is that some great source of capital like, oh, I don’t know, Goldman Sachs, lends some community millions of dollars to improve early-childhood education. Perhaps they build a new pre-K facility, or even use the money to pay some teacher salaries. A wealth of evidence shows that this kind of investment pays a return of sorts because the kids who enjoy this better education are less likely to become teen parents or teen lawbreakers. It stands to reason, therefore, that the community so enriched by this investment can repay the bond by sending to Goldman Sachs the money that would have been spent on the welfare or jail that those teens didn’t need. How’s that for a win-win?

From the perspective of the public budget, you’re really no further ahead, of course, since the money you were going to spend on jails is spent on paying Goldman instead, but at least you have this shiny new school, and fewer criminals, too.

Of course if your pre-K students grow up to be peaceable, responsible, taxpaying, and generally lovely adults — who happen to live somewhere else — well, you can’t make an omelette without cracking a piggy bank, right?

Snark aside, what do we really have here?  Is it a good idea or not? Is this a way for communities to access funds for desperately needed investments, or is it a new way for the financiers who burned down our economy just a few years ago to rape the public funds — again?  Bear in mind, please, that there is a substantial risk here. Research about the future costs of jail and welfare are estimates, made to illustrate various cost/benefit analyses. They are not carefully calibrated prices. The weight of evidence says there will be savings, and the side benefit is happy people and less crime. To me, that’s enough to argue for investment, but the happy people and less crime parts of the benefit aren’t going to help pay off a loan.

It might be worth asking at this point, why those communities can’t afford to invest in these improvements the evidence says will pay off. Oh, right, it’s all the tax breaks of the past decades. Did you know that business taxes used to be the third most important source of revenue to the state of Rhode Island?  Now they are fifth, behind the lottery and all the fees collected by various departments. Did you know that the richest Rhode Islanders paid over three times the income tax of the average taxpayer in 1996, and in 2011, a bit more than twice?  Over the past decades, our state and nation have cut taxes repeatedly in a vain and misguided attempt to stimulate the economy and things have only gotten worse for everyone except those whose taxes were cut.

So now that we can’t afford to make these investments in education and infrastructure (not to mention the human capital our business community claims they want access to but won’t pay for) here’s a new plan: take money from the rich, not as taxes, but as loans, and in return pay them the benefits that used to be thought of as belonging to everyone. And if the benefits don’t actually pan out, do you imagine that the financiers will be at risk?

It’s easy to imagine a community in dire straits, seeking to salvage the futures of some of its residents, with such a desperate and risky scheme. Business owners on Federal Hill used to find themselves wondering in the same way if they should ask the mob for help. But to imagine — no, to actually see and hear — a gubernatorial candidate suggest that this is a good idea on its own merits is appalling. The idea is a disgrace, a wholesale sellout of the very concept of the public good.

So what do we learn here?  First, that the creativity of people paid millions of dollars to think of new ideas to make more money is nearly boundless. Over the past decades, we offered a bargain: tax cuts for rich people in exchange for a better economy. But they used the money to buy political power and used it to extract still more money from the rest of us. They are already on the way to owning the world. Here is yet one more way for the fabulously wealthy to solidify their control of our politics and our world.

The other thing we learn?  That clearly Gina Raimondo is not at all worried by the idea that she might be perceived as too closely tied to the wolves of Wall Street. The question she should answer: does she want to promote the public good, or sell it?

The NECAP graduation requirement is dead. Long live the NECAP graduation requirement.


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Once again, the RI Department of Education has amended its graduation requirements on the fly, surprising districts and education observers with broadly-expanded parameters for the granting of “waivers,” or ex post facto exemptions from the controversial high-stakes testing requirement. The changes made front page news, and rightly so: with 4000 students’ diplomas at stake this year—and presumably a similar number at stake every following year in perpetuity—RIDE had little choice but to either severely amend the requirement or face a renewed firestorm of opposition from both persistent advocates like the Providence Student Union (disclosure: I am a staff organizer for PSU), and also parents from suburban and more affluent communities whose children had come face-to-face with the unforgiving nature of standardized testing.

However, I fear that discussion on the expanded waiver parameters has ignored its most radical component. Thus far, public attention has focused almost exclusively on a provision called “batch approval.” Reports and analyses by Linda Borg; Scott MacKay; Providence Councilmember Sam Zurier; and the ACLU, the Providence Student Union and Senator Adam Satchell (here at RI Future) have all emphasized the surprising provision that districts may automatically grant, or batch approve, waivers of the NECAP graduation requirement for students who have been accepted to a “non-open-enrollment” college. (General admission to CCRI, for example, would not qualify.) Senator Satchell summed up the critics’ responses well:

Basically they are saying you need this [test] to show us you are ready for college, unless you are ready for college. It kind of baffles me.

And as Providence School Board President Keith Oliveira said at last night’s meeting, https://twitter.com/pvdstudentunion/status/422899860174819328.

Yet while I agree that the college exemption is a theoretical head-scratcher, for the lives of students the college provision is in all a good one, as high-stakes testing opponents have long argued that no one who is accepted to a college should be prevented from attending because of a such a test. However, if this is a “victory”, it is a very small one, for two reasons. First, it is in my mind ridiculous that general enrollment colleges like CCRI are not included in the batch waiver—shouldn’t the state support students who demonstrate their determination to receive higher education? Second, and more importantly, Providence Councilmember Zurier and others have expressed concerns that this specific batch waiver provision does little for the underprivileged, ELL students, and students with special education needs. Likewise, Nina Pande, another Providence School Board member said, “[I suspect] this batch waiver process was really designed for the suburbs and the more affluent districts.” For the approximately 1000 students in Providence who did not meet the cut score in the first go-around, one frankly suspects the college provision will have little relevance.

Quietly undoing the testing requirement

HST However, a different piece of the new waiver policy still has the potential to allow hundreds of students in Providence in the state to waive the state assessment and receive a diploma. The power lies in each district’s ability to create a “waiver review team” to individually review each application from students who have not met the bar on their first or second test retakes. RIDE has diagrammed and explained the process themselves, but I’ve captured the essence in my own flowchart to the right (click to enlarge).

Simply put, students who a) have taken both exam retakes, and b) are able to satisfactorily demonstrate 9th and 10th grade proficiency will receive a waiver. Evidence for the latter (cf. page 5) includes “course performance in academic content,” “portfolio work,” and “outside activities/projects”. What’s stunning about this is that students are already to have submitted performance-based evidence in the second of their three topline graduation requirements. A portfolio of strong work, or a researched and well-written project with presentation—both already suffice to show, at the most initial stage, that a student merits a diploma. Now however, the waiver process allows for districts to review performance assessments again to determine diploma status. And as far as I can tell, there are so many accepted means to demonstrate 9th and 10th grade proficiency that the waiver’s standard is actually weaker than the top-line graduation requirement.

In RIDE’s mind, adopting high-stakes testing as part of the graduation requirements had meant setting a hard, quantifiable line that would force increased college readiness statewide. Yet to now allow a qualitative process to supersede a quantitative requirement would seem to obviate the stated purpose of high-stakes testing entirely.

Stress on districts

Implementing a process run by human beings and not test scanners means that school districts statewide must commit serious amounts of resources (read: money and time) to building the new escape hatch. Check out this quote from the RIDE waiver process regulations:

Under our regulations, LEAs [school districts] are responsible for developing and implementing a waiver process. As part of this responsibility, LEAs must:

  • Adopt, publish, and communicate a waiver protocol, as part of their graduation policy;
  • Establish roles and responsibilities; and
  • Evaluate the fairness and consistency with which they apply the waiver protocol to all eligible students.

 

That’s quite a bit of work to do. And yet, because of RIDE’s make-it-up-as-we-go graduation policies, the Providence Public School District did not approve its own version of the waiver policy within RIDE parameters until yesterday, January 12. Providence now only has a few months to create an entirely new bureaucratic structure. It’s not surprising then that PPSD largely admits that it has neither the staff nor the financial flexibility to implement the waiver policy to full integrity, cf. Superintendent Sue Lusi:

https://twitter.com/pvdstudentunion/status/422900854258417665

And a third Providence School Board member, Nick Hemond, called the waiver process “nonsensical bureaucracy, a burden on administrators…and a waste of time and resources.” It’s no wonder then that some cities and towns have chosen not to adopt the full waiver process, avoiding considerable financial and administrative headaches, but creating vast and inequitable inconsistencies in graduation requirements across the state. Providence, facing the possibility of at most 65% of its students not graduating, hardly had the option to decline RIDE’s offer.

So what have we accomplished?

Challenges of implementation aside, one has return to the above flowchart and wonder what exactly the high-stakes testing requirement achieves, now that its graduation-inhibiting power has been almost fully gutted. The Rhode Island graduation requirements for the approximately 12,000 seniors statewide per year retain little to none of the enforcement power of high-stakes testing post-waiver, but they still maintain the façade of high-stakes, and the exorbitant financial and psychological pressures on districts to implement the waiver process will ensure that all of the most negative effects of standardized testing continue. The most rational (if incorrect) part of RIDE’s adoption of the graduation requirements—raising standards for graduation—is gone, while all of the negative externalities—widespread text anxiety, teaching to the test and curriculum narrowing, unfunded de facto mandates on districts—remain. In the chess game of Rhode Island education politics, Commissioner Gist and the Board of Education just forced a stalemate, to the ultimate detriment of our students.

…or perhaps the graduation requirement has finally achieved its exact purpose. As I guessed from the beginning, the graduation requirement was never about raising student achievement; rather, it was a tool to force districts to dramatically raise students’ seriousness about taking standardized tests, primarily to improve the statewide data set in advance of the expensive PARCC test’s adoption. The increased ‘validity’ of the data then opens the door to value-added teacher evaluation and all sorts of other “reforms”. That RIDE has essentially removed all content from the testing graduation requirement seems to support this hypothesis: it’s not about how high a hoop you can jump through, just about whether or not you take those hoops really seriously. And so the statewide education circus continues.

RIF Radio: Is Raimondo a progressive? What do NECAP math failures tell us? Will Lynette Labinger become a judge? Who was Roy Campbell?


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Monday Jan 13, 2013
North Kingstown, RI – Good morning, Ocean State. This is Bob Plain, editor and publisher of the RI Future blog podcasting to you from The Hideaway on the banks of the Mattatuxet River behind the Shady Lea Mill in North Kingstown, Rhode Island.

Today is Tuesday, January 14 and our show today is brought to you by Largess Forestry, our first podcast sponsor. Forest preservationists and licensed arborists, no one will care for your trees better than Matt Largess and his crew. If you’ve got a tree or a woodlot in need of some sprucing up, call Matt today for a free consultation at 849-9191.

Rhode Islanders can expect rain and warm weather today, with temperatures getting close to 50 degrees. In other words, it will be easy even for the simple-minded to recognize the planet is warming today. Thanks God, for making it a little harder for the right-wing spin machine to spread lies about the health of our planet…

And speaking of conditions that question our assumptions about the world … General Treasurer Gina Raimondo, it seems, will be running for governor as a progressive. Her campaign logo even looks like RI Future’s!! For royalties, we only request that you pay us a visit here at the Shady Lea Mill and be our guest on the podcast.

mattatuxet river

 

Why user fees make sense for roads


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Photo by Bob Plain
Photo by Bob Plain

Several times in the course of Twitter conversations, C. Andrew Morse of Anchor Rising has challenged my claim that user fees (for example, tolls) are a conservative method of paying for a road. I challenged him to back that statement up.

Morse states his case this way:

  1. 1. Conservatives in general believe that public good provision is in the set of things that government should do well…
  2. Breaking public goods into individual transactions isn’t, in general, the best way to provide them…w/public good being used in its economic sense here, not to mean “anything that it might be good for the public to have”.
I think it’s easy enough to understand why liberals would feel discomfort at the idea of tolls (although they’re wrong). The idea sounds an awful lot like “I pay for mine, you pay for yours. We’re all individuals.” In a proximate sense this is exactly how the system works for the road in question, but believing in tolls does not commit one to the belief that people don’t have a universal right to certain basic access to sustenance. I would go so far as to say that as a progressive, I believe in a universal right to transportation–with cars as part of that mix. I do not however, either as a progressive or as someone who respects the power of markets to rationalize the distribution of goods, believe that we have a universal right to cars.
Adam Smith referred to the diamond-water paradox. This is the idea that something like a diamond, with virtually no practical uses (Okay, well, some…) is precious, while something as life-affirming as water can cost next to nothing. I think a road in some sense can be understood through this lens. Though not as precious a thing as water, roads are desperately needed for the functioning of an economy, yet despite their intrinsic value they are judged by most of us to be free.
Water is actually a good example to start with. We should have a universal right to water. A person needs a gallon of it each day to drink, and several gallons more each for sanitation, cooking, and so forth respectively. As a progressive, one should commit oneself to the idea that it is wrong for any person, no matter what their faults, to do without such a basic thing. But when we give away millions of gallons of the stuff to farms as a supplement to agriculture, it’s not the same thing. This goes beyond providing the basic needs of every individual towards a more blanket subsidization of a private interest. Such a subsidy has serious consequences on the market efficiency of our agricultural system. It distorts any self regulation of environmental impact due to water usage that might be expected to happen from cost. And it’s unfair: a farmer who does not receive this subsidy will be at a disadvantage to one who does, making this type of subsidized farmer a special protected class that sits outside of the normal realities for others in his/her industry.
Healthcare is another example. I believe that progressives are wrong to expend so much effort defending the flawed Affordable Care Act, because from my perspective it’s basically a bail-out of the insurance industry. There are beneficiaries on the other side (I’ll be one). But to quote the late John Kenneth Galbraith, one does not feed the birds first by passing the oats through a horse. I’d go a bit further than Galbraith. His criticism was that we shouldn’t use a private entity to provide a public good. I would universalize his statement. We shouldn’t argue for a policy because it has secondary or tertiary beneficiaries if the structure of the program is inefficient at providing those benefits. A free market or a single payer system both have advantages for provision of healthcare. The ACA essentially takes away the benefit of either.
If you assume that just as one has a basic need for water, one also has a basic need for transportation, then naturally you will follow that conclusion correctly to the result that government should have some collective role in providing for this need. Yet, just as in the case of water, while one has an overall right to access, that does not grant one the right to be given more than the basics. We should laugh at a policy of taxing everyone for highways and then leaving them free at the source of use just as we would laugh at a policy to tax everyone equally to provide the “public need” of a Mercedes for every household, or to “provide for public housing” by buying a Newport Mansion for every household (Okay, I suppose in the case of Alex & Ani, that’s exactly what we did, but I digress).
Markets have a place in our decision-making about roads, because like every other thing under the sun, roads have a cost and a benefit. Too often, progressives and conservatives alike talk about their respective programs as if the money rains from On High without coming from someplace. Take this Atlantic Monthly article excoriating Chris Christie for his transportation policies as an example from the left. Overall I agree with it, but then there’s this passage:

A staggering 400,000 people make the trip from New Jersey to New York each day by car, train, bus, and ferry, the most that commute between any two states. That exhausting journey gets messed up any time a choke point gets blocked (say, by a power problem in the Amtrak tunnel, or, in this case, the closing of several toll lanes in Fort Lee). For the typical Jersey commuter, it’s a rare week that passes without a glitch.

The ARC tunnel had been designed to relieve some of the enormous pressure on the few bridge and tunnel crossings between New York and New Jersey, where demand is expected to rise nearly 40 percent by 2030. The tunnel had bipartisan support from state lawmakers, and former Governor Jon Corzine, a Democrat, broke ground on the project in 2009 to much fanfare. Construction was already well underway on ARC, the biggest public works endeavor in the nation’s history, when Christie pulled the plug.

The federal government had committed to pay for 51 percent of the project, which had estimated costs in the neighborhood of $10 billion. Then-Secretary of the U.S. Department of Transportation, Ray LaHood, made a personal trip to New Jersey to plead with Christie to reconsider his stance.

But Christie stood firm, winning kudos from Republicans across the nation as a tough-minded conservative who was willing to make difficult choices about reining in government spending. It was his breakout appearance on the national scene, and a lot of people liked what they saw.

Two years after Christie killed ARC, a report from the nonpartisan Government Accountability Office came out that suggested what he had said about the cost of the tunnel was wrong. Among other things, the report found that he had dramatically overstated the share that New Jersey would have had to pay. Christie had claimed that the state would be responsible for 70 percent of the ARC costs, while the GAO found that number would have been 14.4 percent. The state ended up having to repay $95 million to the federal government in a negotiated settlement. (my emphases)

This is the kind of statement you see on left and right all the time: an accounting of costs that talks about “how much the state will pay” after the feds throw in their share, as if the federal part of the expenditure doesn’t matter. I fully agree that this was a project that was well worth its cost, but this is just bad accounting. The people of New Jersey are not just taxpayers in New Jersey. They also pay federal taxes. If a project is good on its own merits, then so be it. But if we’re arguing that it’s good because someone else is supposedly paying for it, we’re fooling ourselves (You can count on conservatives like John Kasich of Ohio to make the same type of ridiculous argument in defense of a project like the so-called Opportunity Corridor in Cleveland, so it’s a bipartisan disease).

If local and state governments thought about road projects in terms of the costs they carried, as well as the benefits, then the way we approached roads would be very different. Chuck Marohn of The Strong Towns blog makes this argument forcefully every week on his podcast. An engineer, Marohn was drawn to express himself on planning by what he observed on the job. He found that time and again, cities and towns allowed sprawl to be built for the benefit of the jobs, tax revenue, or outside grants that it would draw in its first iteration, without considering the long-term cost of maintaining the expensive infrastructure when it wore out. By building towns on large lots, one story high, with wide expanses of road, plumbing, and electrical connections connecting them at a distance, Marohn argues that the fantastic appearance of growth belies the fact that there isn’t enough revenue to cover long term costs. This has obvious importance to progressives concerned about land use policy and “alternative” transportation, but it’s fundamentally an example of where the basic mechanism of the market has been distorted by outside government interference.

Road pricing can be used to sustain the long-term costs of a project, like the Sekonnet Bridge, not only from a supply but a demand side. People’s peak demand for a “free” service is always higher than if they had to pay its costs. Jarrett Walker of Human Transit describes this as being like the people who sleep out in tents all night to get free tickets to a concert. The campers are paying in time what they might pay in money. This is what happens to people on a clogged road. The “free” (actually subsidized) use of the road has no check on people’s use of it, so that people pay in time during their commute for what they might have paid for in money.

Road pricing is only part of the externality of driving. Parking is among the most expensive aspects of a trip for most people, outweighing gas expenditures for the trips we make everyday (because so many of those–the commute to work, the trip to the grocery store, picking the kids up from soccer practice, are relatively short). We have a range of zoning requirements that force developers to create excess parking spots to meet a Christmas Eve peak demand, with the base assumption being that such parking spots are free (in reality, they average around $15,000 per space).

While making car users pay for the things they use, like road space or parking, has been portrayed by many so-called conservatives as “taxing”, in reality what is happening is that the users of a product do not pay for it at the point of consumption. Since most Americans drive to work, this might seem untroubling–after all, if we paid for these things up front, wouldn’t it mostly pan out the same way that it does if we did secretly through taxes? The error in this assumption is that the arrangement of our buildings, the distances we choose to travel, the methods we would use when we do travel, and so on are all static phenomena. The tragedy of the commons in this case is that the few people who try to break against the tide and ride a bicycle or take a bus someplace are left high and dry with no real infrastructure to support them, despite the fact that their way of getting somewhere is inherently more market-based and efficient.

What’s far more precious than a diamond is our ability to survive and thrive on this planet. But if we’re going to overcome the devastating effects of climate change, we need to address the market distortions in our transportation and land use.

It’s sound conservative policy.

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