Wednesday, December 24, 2008

Not exactly

Prof.Paul Krugman likes the proposed fiscal stimulus because it would fund "public goods." Well, not exactly.

Almost all of the highways and bridges that might be funded are public by edict only. Most could be profitably operated by private owners. No non-rivalry and no non-excludability. Tolling belies both.

As for the various "green" projects that would be funded, most will be much closer to boondoggles than to public goods.