Highway Follies

Almost three weeks ago I linked to Virginia Postrel's NYT article on highway spending. There has been some back and forth over at the Dynamist on this topic. First, a reader suspects some highways statistics are inflated and unsupportable by methodology. A Senior Staff Economist in the FHWA Office of Policy replies and defends the figure that one billion dollars in spending creates 48,000 jobs. VP remains dubious: "It still doesn't pass the smell test." A few more thoughts by VP on how a great deal of this road spending is "low-value roads with porkbarrel appeal. It also subsidizes neighborhood amenities." Road spending isn't aimed to be effecient expenditure, economically stimulating, but rather is its about political spending to bring dollars back to the district. She continues in a sequential post on how the assumption behind the 48,000 per billion statistic assumes Keynesian disequilibrium of Great Depression proportions.