Abolish the Department of Transportation

Toll booth in the U.K.

The Cato Institute’s Dan Mitchell explains the power of the private sector.

It turns out that the private sector can build roads. And a great example happened earlier this year on the other side of the Atlantic Ocean. Here are some passages from a story out of the United Kingdom.

A grandfather sick of roadworks near his home defied his council and built his own toll road allowing people to circumvent the disrupted section. Opened on Friday, it’s the first private toll road built since cars became a familiar sight on British roads 100 years ago. …Mike Watts, 62, hired a crew of workmen and ploughed £150,000 of his own cash into building a 365m long bypass road in a field next to the closed A431. He reckons it will cost another £150,000 in upkeep costs and to pay for two 24 hour a day toll booth operators. …Father of four Mike asked his friend John Dinham if he would mind renting him the field until Christmas and hired three workmen to help build the road in just 10 days. He worked with the Highways Agency, has public liability insurance… But a spokesman for the council said it was not happy about the bold build.

Wow, talk about the private sector coming to the rescue. Two things jump out from that story. First, it took only 10 days and £150,000 to build the road. If the government did it, it would take 20 times as long and cost 30 times as much.

The other noteworthy part of the story is that the local government isn’t happy. Well, of course not. Mr. Watts showed them up.

Some of you may be thinking this is a once-in-a-lifetime story and that we shouldn’t draw any lessons.

But that’s why an article by Nick Zaiac in London’s City A.M. is a must read. He cites the new toll road, but puts it in historical context.

Adams’ work falls into a long tradition of private provision of public services in order to serve some private goal. …Actions like these are not without precedent. In the American island state of Hawaii, residents and business owners gathered together in 2009 to fix a road through a state park that was vital to the area. They completed it entirely for free, with locals donating machinery, materials, and labor. In fact, the project was completed in a shockingly brief eight days. …Private roads have a long and storied history in both Britain and the US. Between 1800 and 1830, private turnpikes made up an astounding 27 per cent of all business incorporations in the US. Britain, between 1750 and 1772, had previously experienced a period of “turnpike mania”, as noted by economic historians Daniel Klein and John Majewski. Put simply, private infrastructure is by no means a new thing. It is simply the slow return to the way many roads were originally built.