Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

About Roads

rated by 0 users
Answered (Verified) This post has 1 verified answer | 17 Replies | 5 Followers

Top 500 Contributor
Male
244 Posts
Points 5,455
Felipe posted on Tue, Jul 27 2010 6:16 PM

I have a question I cant resolve no matter how much I think about it, maybe you can help me:

Lets say we live in purely market economy, no state involved, and a private organization owns and operates the road in front of your small town, this is the only road to get out of the town, but you and others in the town are too poor to pay for the continuous use of that road and therefore are "imprisoned" there (assume in this scenario that you have to make several trips a day or at least more than you can pay).

What is the solution? 

Reaching an understanding with the owner of the road?

Challenge his right to such road?

  • | Post Points: 140

Answered (Verified) Verified Answer

Top 25 Contributor
3,739 Posts
Points 60,635
Answered (Verified) Marko replied on Thu, Jul 29 2010 11:03 AM
Verified by Felipe

The real solution is probably car pooling. It is what poor people do. They (we) ride buses.

But it can also be pointed out that it makes no economic sense for the road owner to charge more than his only potential customers can afford to pay. Even if the toll is so low that it does not cover the maintence costs, not charging any toll (because no one is using the road) will lead to even higher loses.

And we all know that for such a scenario to come about the state probably had to come involved in at one point. Because in an ancap revolution such a road would promptly get seized by the Small Town Road Company in which every household would have one share (initially).

  • | Post Points: 25

All Replies

Top 25 Contributor
3,739 Posts
Points 60,635
Answered (Verified) Marko replied on Thu, Jul 29 2010 11:03 AM
Verified by Felipe

The real solution is probably car pooling. It is what poor people do. They (we) ride buses.

But it can also be pointed out that it makes no economic sense for the road owner to charge more than his only potential customers can afford to pay. Even if the toll is so low that it does not cover the maintence costs, not charging any toll (because no one is using the road) will lead to even higher loses.

And we all know that for such a scenario to come about the state probably had to come involved in at one point. Because in an ancap revolution such a road would promptly get seized by the Small Town Road Company in which every household would have one share (initially).

  • | Post Points: 25
Not Ranked
42 Posts
Points 795

Roads? Where we're going we don't need...roads.

 

  • | Post Points: 20
Top 500 Contributor
Male
268 Posts
Points 5,220

It should also be pointed out(and I'm surprised nobody has brought this up yet) that in an anarcho-cap society not all roads may require a toll.  Some probably will, but others might find it better(more profitable) to let drivers get on for free, and charge for advertising along them(ex.  Billboards), or to charge businesses to build an exit from the road to their business.  

Just a thought.  

OBJECTION!!!!!!!!!!!!!!!!

If you preface everything you say with the phrase 'studies have shown...' people will believe anything you say no matter how ridiculous. Studies have shown this works 87.64% of the time.
  • | Post Points: 5
Page 2 of 2 (18 items) < Previous 1 2 | RSS