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Politics : Actual left/right wing discussion
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To: TimF who wrote (3288)10/22/2006 9:46:58 AM
From: cirrus  Read Replies (1) of 10087
 
That's exactly why there needs to be some sort of government incentive to create the infrastructure.

Throughout our history major infrastructure projects that were critical to our nation's growth required government assistance because they were beyond the scope of "free markets". Once the government established a market, it could then step back and let market forces work.

The transcontinental railroad, for example, was built on massive federal land grants to the railroads. It would have taken decades for the "free markets" to build such a railroad otherwise. The REA was a government agency created to bring electricity to rural areas where there was little economic incentive to do so. However, without the REA rural America might today still have areas similar to those in third world countries, areas without electric power. The universal service charge on your phone bill is another example of the government stepping in to provide incentives to make something such as phone service available nationwide where economics alone might not justify it. Are these bad things? I think not. The overall system networks are immeasurably enhanced by truly universal electric and phone service.

And the automobile. Where would we be if we relied on "market forces" to build roads and the interstate highway system?

The push to hydrogen is a similar situation. The technology works. Honda, GM and BMW have the cars in late stage development. However, without a program to get hydrogen to neighborhood pumps it may well be eons before the vehicles are commonplace. With some government incentives and a program to coordinate and roll out hydrogen stations it will happen decades sooner - and every dollar spent will be spent here in America, creating jobs for Americans instead of fattening the pockets of OPEC - which is hardly a "free market" institution.

"Developing a technology is easier than engineering and implementing an infrastructure across the whole country."
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