Quotulatiousness

January 22, 2015

The seductive appeal of the big project

Filed under: China, Railways, USA — Tags: , , — Nicholas @ 02:00

In a Forbes post from a few years back, Warren Meyer looks at the appeal of the megaproject to those inclined to think that what society really needs is someone in control:

What is it about intellectuals that seem to, generation after generation, fall in love with totalitarian regimes because of their grand and triumphal projects? Whether it was the trains running on time in Italy, or the Moscow subways, or now high-speed rail lines in China, western dupes constantly fall for the lure of the great pyramid without seeing the diversion of resources and loss of liberty that went into building it.

Writers like Thomas Friedman and Joel Epstein in the Huffington Post have eulogized China and its monumental spending projects. These are the same folks who, generations ago, tried disastrously to emulate Mussolini’s “forward-thinking” economic regime in the National Industrial Recovery Act. These are the same folks who wanted to emulate MITI’s management of the Japanese economy (which drove them right into a 20-year recession). These are the same folks who oohed and ahhed over the multi-billion dollar Beijing Olympics venues while ignoring the air that was un-breathable. These are the same folks who actually believed the one Cuban health clinic in Sicko actually represented the standard of care received by average citizens. To outsiders, the costs of these triumphal programs are often not visible, at least not until years or decades later when the rubes have moved on to new man crushes.

These writers worry that the US is somehow being left behind by China because its government builds more stuff than we do. We are “asleep.” Well, here is my retort: Most of the great progress in this country occurred when the government was asleep. The railroads, the steel industry, the auto industry, the computer industry — all were built by individuals when the government was at best uninvolved and at worst fighting their progress at every step.

In particular, both Friedman and Epstein think we need to build more high speed passenger trains. This is exactly the kind of gauzy non-fact-based wishful thinking that makes me extremely pleased that these folks do not have the dictatorial powers they long for. High speed rail is a terrible investment, a black hole for pouring away money, that has little net impact on efficiency or pollution. But rail is a powerful example because it demonstrates exactly how this bias for high-profile triumphal projects causes people to miss the obvious.

Which is this: The US rail system, unlike nearly every other system in the world, was built (mostly) by private individuals with private capital. It is operated privately, and runs without taxpayer subsidies. And, it is by far the greatest rail system in the world. It has by far the cheapest rates in the world (1/2 of China’s, 1/8 of Germany’s). But here is the real key: it is almost all freight.

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